72A.08 LAWS AGAINST REBATE.
Subdivision 1. Rebate defined and prohibited.
No insurance company or association,
however constituted or entitled, including any affiliate of the insurance company or association,
doing business in this state, nor any officer, agent, subagent, solicitor, employee, intermediary, or
representative thereof, shall make or permit any advantage or distinction in favor of any insured
individual, firm, corporation, or association with respect to the amount of premium named in, or
to be paid on, any policy of insurance, or shall offer to pay or allow directly or indirectly or by
means of any device or artifice, as inducements to insurance, any rebate or premium payable on
the policy, or any special favor or advantage in the dividends or other profit to accrue thereon, or
any valuable consideration or inducement not specified in the policy contract of insurance, or
give, sell, or purchase, offer to give, sell or purchase, as inducement to insure or in connection
therewith, any stocks, bonds, or other securities of any insurance company or other corporation,
association, partnership, or individual, or any dividends or profits accrued or to accrue thereon,
or anything of value, not specified in the policy. For purposes of this section, "affiliate" has the
meaning given in section
60D.15, subdivision 2
Subd. 2. Insured prohibited from receiving rebates.
No person shall receive or accept
from any such company or association, including any affiliate of the insurance company or
association, or from any of its officers, agents, subagents, solicitors, employees, intermediaries, or
representatives, or any other person any such rebate of premium payable on the policy, or any
special favor or advantage in the dividends or other financial profits accrued, or to accrue, thereon,
or any valuable consideration or inducement not specified in the policy of insurance. No person
shall be excused from testifying, or from producing any books, papers, contracts, agreements, or
documents, at the trial of any other person, copartnership, association, or company charged with
violation of any provision of this section on the ground that the testimony or evidence may tend
to incriminate; but no person shall be prosecuted for any act concerning which the person shall
be compelled to so testify or produce evidence, documentary or otherwise, except for perjury
committed in so testifying.
Subd. 3. Penalty for rebate.
Any company, association, or individual violating any
provisions of this section, whether the violation be in the giving or accepting of anything herein
prohibited, shall be punished by a fine of not less than $60 nor more than $200. In the case of a
violation by an affiliate or by an individual on behalf of an affiliate, this subdivision applies to the
insurance company or association.
Subd. 4. Exceptions.
The provisions of this section shall not apply to any policy procured
by officers, agents, subagents, employees, intermediaries, or representatives wholly and solely
upon property of which they are, respectively, the owner at the time of procuring the policy,
where the officers, agents, subagents, employees, intermediaries, or representatives are, and
have been for more than six months prior to the issuing of the policy, regularly employed by, or
connected with, the company or association issuing the policy; and any life insurance company
doing business in this state may issue industrial policies of life or endowment insurance, with
or without annuities, with special rates of premiums less than the usual rates of premiums for
these policies, to members of labor organizations, credit unions, lodges, beneficial societies, or
similar organizations, or employees of one employer, who, through their secretary or employer,
may take out insurance in an aggregate of not less than 50 members and pay their premiums
through the secretary or employer.
History: 1967 c 395 art 12 s 8; 1986 c 444; 1998 c 375 s 1-3; 2002 c 330 s 30,34; 2002
c 331 s 18; 2002 c 342 s 11; 2002 c 357 s 2