(a) No person shall issue or deliver, or permit its agents, officers, or employees to issue or deliver, agency company stock or other capital stock, or benefit certificates or shares in any common-law corporation, or securities, or any special or advisory board contract or other contract of any kind promising returns and profits as an inducement to insurance. The commissioner shall refuse to issue a certificate of authority or license to any insurer or other person that is in violation of this section and shall revoke the certificate of authority or license of any such violating insurer or person if such authority or license is already outstanding.
(b) No person shall issue or deliver, or permit its agents, officers, or employees to issue or deliver, in this state, any life insurance policy or contract of annuity in which are used such words as "investment plan," "expansion plan," "profit-sharing," "charter plan," "founders' plan," "surplus-sharing," or similar language in such context or under such circumstances or conditions as to have the capacity or tendency to mislead a purchaser or prospective purchaser of life insurance to believe that he will receive or that it is probable he will receive something other than an insurance policy, or contract, or some benefit not provided in the policy or contract or some benefit not available to other persons of the same class and equal expectation of life.
(c) No insurer shall issue or deliver, or permit its agents, officers, or employees to issue or deliver, in this state a policy of life insurance containing benefits in the form of "coupons" or "guaranteed annual endowment" benefits unless the premium charged for the insurance coverage and the premium charged for the "coupons" or "guaranteed annual endowment" benefits are prominently specified in the policy separately from each other in dollar amounts. This shall not apply to any policy in which the amount of any pure endowment or periodic benefit, or benefits, payable during any policy year is greater than the total annual premium for such year.
Structure Code of Alabama
Chapter 12 - Trade Practices Law.
Section 27-12-1 - Purpose of Chapter; Short Title.
Section 27-12-2 - General Prohibition Against Unfair Competition, Etc.
Section 27-12-7 - False Statements and Entries.
Section 27-12-8 - Boycotts, Coercion, and Intimidation.
Section 27-12-9 - Malicious Statements on Financial Condition.
Section 27-12-10 - Financial Inducements to Purchase Insurance.
Section 27-12-11 - Life, Annuity, and Disability Insurance - Unfair Discrimination in Rates, Etc.
Section 27-12-14 - Inducements as to Property, Casualty, or Surety Insurance.
Section 27-12-15 - Purchase of Insurance as Condition Precedent to Sale or Loan on Property.
Section 27-12-16 - Common Ownership, Management, and Directorships.
Section 27-12-18 - Statement of Charges; Hearing, Order, and Review Thereon.
Section 27-12-19 - Service of Statements, Notices, Orders, and Other Processes.
Section 27-12-20 - Review of Commissioner's Cease and Desist Orders.
Section 27-12-21 - Proceedings on Unfair Competition, etc., Not Defined Under Chapter - Generally.
Section 27-12-23 - False Statements, etc., in Insurance Application.
Section 27-12-24 - Refusal of Insurer to Pay or Settle Claims.