The Montgomery advertiser., 1909-09-16
AN ACT

No. S9.l AN ACT GIT. B. e2. To prohibit misrepresentations, rebat- ing and discriminations by life inc
 surance companies. and prohibiting
 the insurance of certain special
 contracts and the sale and issuance
 of stocks. bonds or other securi-
 ties in connection with the sale of
 life insurance.
 Section 1. Be 1t enacted by the Legislature of Alabama, That no life insurance company doing business in this State. and no officer. director or agent thereof, shall issue or circulate, or cause or permit to be issued or cir- culated, any estimate, illustration, cir cular or statement of any sort mis- representing the terms of any policy issued by 1t or the benefits or advan- tages promised thereby, or the divi- dends or shares of surplus to be re- ceived thereon, or shall use any name or title of any policy or class of poli- cies misrepresenting the true nature thereof. Nor shall any such company, agent or broker make any misrepre- sentation to any person insured in such company or in any other company for the purpose of inducing or tending to Induce any person to lapse. forfeit or surrender his insurance. No life in- surance company transacting business under the provisions of this act shall is- sue a policy to @ resident of this state which does not bear in bold letters on its face plain description of the policy. so fully defining its character. including dividends and other peculiarities. that the holder thereof shall not be liable to mistake the nature or scope of the contract. Viola ton of this section by an agent or of ficer of any insurance company. shall be a misdemeanor and punished by 8 fine not less than one hundred dollars nor more than five hundred dollars or Imprisonment in the county jail for thirty (3o) days, or by both such fine and Imprisonment, and if company violates or participates in the viola tion of this section. such company shall have its certificate of authority to do business in this state suspended for a period not exceeding one year Sec. g. No life insurance company during business In this state shall make or permit any distinction or dis crImination in favor of individuals be- tween insurants (the insured) of the same class and equal expectation of life in the amount of premiums or rates charged for policies of life or endowment insurance. or In the divi- dends or other benefits payable there on. or in any other of the terms and conditions of the contracts 1t makes.
 
 thereof make any contract of insurance or agreement as to such contract other than Is plainly expressed in the policy issued thereon; nor shall any such company or any officer, agent, solici- tor or representative thereof pay, all low or give or offer to pay, allow or give indirectly. as inducement to in- surance, any rebate of premium pay able on the policy. or any special favor or advantage In the dividends or other benefits to accrue thereon, or any paid employment or contract for services of any kind. or any valuable considera- tion or inducement whatever not speci- fled in the policy contract of insur- ance; nor give. sell or purchase or of- fer to give, sell or purchase, as Induce ment to insurance or in connection herewith. any stocks, bonds or other securities of any insurance company or other corporation. association or partnership, or any dividends or profits to accrue thereon, or anything of value whatever. not specified in the policy.
 Every officer or agent of any insur- ance company doing business in this State, who shall violate any of the provisions of this section, shall be deemed guilty of a misdemeanor, and, upon conviction thereof shall be fined a sum of not less than one hundred dollars (S100.00), nor exceeding five hundred dollars (s5Oo.o0). or imprison-