{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-509.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-509.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-509.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-509.html"}],"law_id":66721,"edition_id":1,"section_id":66721,"structure_id":13684,"section_number":"38.2-509","catch_line":"Rebates","history":"Code 1950, \u00a7 38.1-52; 1952, c. 317, \u00a7 38.1-52.8; 1977, c. 529; 1978, c. 441; 1979, c. 324; 1980, c. 404; 1986, c. 562.","full_text":"A\n\nExcept as otherwise expressly provided by law, no person shall:1\n\nKnowingly permit, offer, or make any insurance or annuity contract or agreement which is not plainly expressed in the contract issued;2\n\nPay, allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to any insurance or annuity contract, any rebate of premium payable on the contract, any special favor or advantage in the dividends or other benefits on the contract, any valuable consideration or inducement not specified in the contract, except in accordance with an applicable rating plan authorized for use in this Commonwealth;3\n\nGive, sell, purchase, or offer to give, sell or purchase as inducement to insurance, or annuity contracts, or in connection with such contracts, any stocks, bonds, or other securities of any company, any dividends or profits accrued on any stocks, bonds or other securities of any company, or anything of value not specified in the contract; or4\n\nReceive or accept as inducement to insurance, or annuity contracts, any rebate of premium payable on the contract, any special favor or advantage in the dividends or other benefit to accrue on the contract, or any valuable consideration or inducement not specified in the contract.B\n\nNothing in \u00a7 38.2-508 or in this section shall be construed to include within the definition of discrimination or rebates any of the following practices:1\n\nIn the case of any life insurance or annuity contract, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance if the bonuses or abatement of premiums are fair and equitable to policyholders and in the best interests of the insurer and its policyholders;2\n\nIn the case of life or accident and sickness insurance policies issued on the industrial debit plan, making allowance to policyholders who, for a specified period, have continuously made premium payments directly to an office of the insurer in an amount that fairly represents the savings in collection expense;3\n\nReadjustment of the rate of premium for a group insurance policy based on the loss or expense experience under the policy, at the end of the first or any subsequent policy year of insurance;4\n\nIn the case of insurers, allowing their bona fide employees to receive a reduction on the premiums paid by them on policies or contracts on their own lives and property, and on the lives and property of their spouses and dependent children;5\n\nIssuing life or accident and sickness policies or annuity contracts on a salary savings or payroll deduction plan at a reduced rate consistent with the savings made by the use of such plan;6\n\nPaying commissions or other compensation to duly licensed agents or brokers; or7\n\nAllowing or returning to participating policyholders, members or subscribers, dividends, savings or unabsorbed premium payments.","order_by":null,"text":{"0":{"id":241947,"text":"Except as otherwise expressly provided by law, no person shall:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":241948,"text":"Knowingly permit, offer, or make any insurance or annuity contract or agreement which is not plainly expressed in the contract issued;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":241949,"text":"Pay, allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to any insurance or annuity contract, any rebate of premium payable on the contract, any special favor or advantage in the dividends or other benefits on the contract, any valuable consideration or inducement not specified in the contract, except in accordance with an applicable rating plan authorized for use in this Commonwealth;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":241950,"text":"Give, sell, purchase, or offer to give, sell or purchase as inducement to insurance, or annuity contracts, or in connection with such contracts, any stocks, bonds, or other securities of any company, any dividends or profits accrued on any stocks, bonds or other securities of any company, or anything of value not specified in the contract; or","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":241951,"text":"Receive or accept as inducement to insurance, or annuity contracts, any rebate of premium payable on the contract, any special favor or advantage in the dividends or other benefit to accrue on the contract, or any valuable consideration or inducement not specified in the contract.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":241952,"text":"Nothing in \u00a7 38.2-508 or in this section shall be construed to include within the definition of discrimination or rebates any of the following practices:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4","next_prefix":"B1"},"6":{"id":241953,"text":"In the case of any life insurance or annuity contract, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance if the bonuses or abatement of premiums are fair and equitable to policyholders and in the best interests of the insurer and its policyholders;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"7":{"id":241954,"text":"In the case of life or accident and sickness insurance policies issued on the industrial debit plan, making allowance to policyholders who, for a specified period, have continuously made premium payments directly to an office of the insurer in an amount that fairly represents the savings in collection expense;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"8":{"id":241955,"text":"Readjustment of the rate of premium for a group insurance policy based on the loss or expense experience under the policy, at the end of the first or any subsequent policy year of insurance;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"9":{"id":241956,"text":"In the case of insurers, allowing their bona fide employees to receive a reduction on the premiums paid by them on policies or contracts on their own lives and property, and on the lives and property of their spouses and dependent children;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"10":{"id":241957,"text":"Issuing life or accident and sickness policies or annuity contracts on a salary savings or payroll deduction plan at a reduced rate consistent with the savings made by the use of such plan;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"11":{"id":241958,"text":"Paying commissions or other compensation to duly licensed agents or brokers; or","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"12":{"id":241959,"text":"Allowing or returning to participating policyholders, members or subscribers, dividends, savings or unabsorbed premium payments.","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6"}},"ancestry":[{"id":13684,"edition_id":1,"name":"Unfair Trade Practices","identifier":"5","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:33","date_modified":"2026-06-26 03:45:33","permalink":{"id":217475,"object_type":"structure","relational_id":13684,"identifier":"5","token":"38.2\/5","url":"\/38.2\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":66905,"structure_id":13684,"section_number":"38.2-500","catch_line":"Declaration of purpose","url":"\/38.2-500\/","token":"38.2\/5\/38.2-500","metadata":false},{"id":79956,"structure_id":13684,"section_number":"38.2-501","catch_line":"Definitions","url":"\/38.2-501\/","token":"38.2\/5\/38.2-501","metadata":false},{"id":79437,"structure_id":13684,"section_number":"38.2-502","catch_line":"Misrepresentations and false advertising of insurance policies","url":"\/38.2-502\/","token":"38.2\/5\/38.2-502","metadata":false},{"id":54663,"structure_id":13684,"section_number":"38.2-503","catch_line":"False information and advertising generally","url":"\/38.2-503\/","token":"38.2\/5\/38.2-503","metadata":false},{"id":82451,"structure_id":13684,"section_number":"38.2-504","catch_line":"Defamation","url":"\/38.2-504\/","token":"38.2\/5\/38.2-504","metadata":false},{"id":84128,"structure_id":13684,"section_number":"38.2-505","catch_line":"Boycott, coercion and intimidation","url":"\/38.2-505\/","token":"38.2\/5\/38.2-505","metadata":false},{"id":78214,"structure_id":13684,"section_number":"38.2-506","catch_line":"False statements and entries","url":"\/38.2-506\/","token":"38.2\/5\/38.2-506","metadata":false},{"id":56726,"structure_id":13684,"section_number":"38.2-507","catch_line":"Stock operations and advisory board contracts","url":"\/38.2-507\/","token":"38.2\/5\/38.2-507","metadata":false},{"id":67626,"structure_id":13684,"section_number":"38.2-508","catch_line":"Unfair discrimination","url":"\/38.2-508\/","token":"38.2\/5\/38.2-508","metadata":false},{"id":80488,"structure_id":13684,"section_number":"38.2-508.1","catch_line":"Unfair discrimination; members of the armed forces","url":"\/38.2-508.1\/","token":"38.2\/5\/38.2-508.1","metadata":false},{"id":63719,"structure_id":13684,"section_number":"38.2-508.2","catch_line":"Discrimination prohibited","url":"\/38.2-508.2\/","token":"38.2\/5\/38.2-508.2","metadata":false},{"id":79096,"structure_id":13684,"section_number":"38.2-508.3","catch_line":"Consideration of Medicaid eligibility prohibited","url":"\/38.2-508.3\/","token":"38.2\/5\/38.2-508.3","metadata":false},{"id":61622,"structure_id":13684,"section_number":"38.2-508.4","catch_line":"Genetic information privacy","url":"\/38.2-508.4\/","token":"38.2\/5\/38.2-508.4","metadata":false},{"id":77794,"structure_id":13684,"section_number":"38.2-508.5","catch_line":"Re-underwriting individual under existing group or individual accident and sickness insurance policy prohibited; exceptions","url":"\/38.2-508.5\/","token":"38.2\/5\/38.2-508.5","metadata":false},{"id":66721,"structure_id":13684,"section_number":"38.2-509","catch_line":"Rebates","url":"\/38.2-509\/","token":"38.2\/5\/38.2-509","metadata":false},{"id":56597,"structure_id":13684,"section_number":"38.2-510","catch_line":"Unfair claim settlement practices","url":"\/38.2-510\/","token":"38.2\/5\/38.2-510","metadata":false},{"id":80252,"structure_id":13684,"section_number":"38.2-511","catch_line":"Failure to maintain record of complaints","url":"\/38.2-511\/","token":"38.2\/5\/38.2-511","metadata":false},{"id":77547,"structure_id":13684,"section_number":"38.2-512","catch_line":"Misrepresentation in insurance documents or communications","url":"\/38.2-512\/","token":"38.2\/5\/38.2-512","metadata":false},{"id":64491,"structure_id":13684,"section_number":"38.2-513","catch_line":"Repealed","url":"\/38.2-513\/","token":"38.2\/5\/38.2-513","metadata":false},{"id":68759,"structure_id":13684,"section_number":"38.2-513.1","catch_line":"Insurance sales by depository institutions and other lending institutions","url":"\/38.2-513.1\/","token":"38.2\/5\/38.2-513.1","metadata":false},{"id":84848,"structure_id":13684,"section_number":"38.2-514","catch_line":"Failure to make disclosure","url":"\/38.2-514\/","token":"38.2\/5\/38.2-514","metadata":false},{"id":75763,"structure_id":13684,"section_number":"38.2-514.1","catch_line":"Disclosure required","url":"\/38.2-514.1\/","token":"38.2\/5\/38.2-514.1","metadata":false},{"id":72002,"structure_id":13684,"section_number":"38.2-514.2","catch_line":"Disclosures required of motor vehicle rental contract insurance agents and enrollers","url":"\/38.2-514.2\/","token":"38.2\/5\/38.2-514.2","metadata":false},{"id":77046,"structure_id":13684,"section_number":"38.2-515","catch_line":"Power of Commission","url":"\/38.2-515\/","token":"38.2\/5\/38.2-515","metadata":false},{"id":62747,"structure_id":13684,"section_number":"38.2-515.1","catch_line":"Power of Commission; policies issued outside of the Commonwealth","url":"\/38.2-515.1\/","token":"38.2\/5\/38.2-515.1","metadata":false},{"id":67332,"structure_id":13684,"section_number":"38.2-516","catch_line":"Prohibited compensation for intra-company replacement","url":"\/38.2-516\/","token":"38.2\/5\/38.2-516","metadata":false},{"id":76418,"structure_id":13684,"section_number":"38.2-517","catch_line":"Unfair settlement practices; replacement and repair; penalty","url":"\/38.2-517\/","token":"38.2\/5\/38.2-517","metadata":false},{"id":74674,"structure_id":13684,"section_number":"38.2-518","catch_line":"Certificates of insurance","url":"\/38.2-518\/","token":"38.2\/5\/38.2-518","metadata":false}],"previous_section":{"id":77794,"structure_id":13684,"section_number":"38.2-508.5","catch_line":"Re-underwriting individual under existing group or individual accident and sickness insurance policy prohibited; exceptions","url":"\/38.2-508.5\/","token":"38.2\/5\/38.2-508.5","metadata":false},"next_section":{"id":56597,"structure_id":13684,"section_number":"38.2-510","catch_line":"Unfair claim settlement practices","url":"\/38.2-510\/","token":"38.2\/5\/38.2-510","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-509\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 6 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1977, chapter 529; in 1978, chapter 441; in 1979, chapter 324; in 1980, chapter 404; in 1986, chapter 562.<\/p>","references":[{"id":74749,"section_number":"38.2-3456","catch_line":"Prohibited activities","order_by":null,"url":"\/38.2-3456\/"},{"id":74319,"section_number":"38.2-4608","catch_line":"Title insurance rates","order_by":null,"url":"\/38.2-4608\/"}],"refers_to":[{"id":67626,"section_number":"38.2-508","catch_line":"Unfair discrimination","order_by":null,"url":"\/38.2-508\/"}],"permalink":{"id":217533,"object_type":"law","relational_id":66721,"identifier":"38.2-509","token":"38.2\/5\/38.2-509","url":"\/38.2-509\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-509\/","token":"38.2\/5\/38.2-509","dublin_core":{"Title":"Rebates","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-509","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Except as otherwise expressly provided by law<\/span>, no person<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Knowingly permit, offer, or make any insurance<\/span> or annuity contract<\/span> or agreement which is not plainly expressed in the contract<\/span> issued; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Pay, allow or give, or offer to pay, allow or give, directly or indirectly, as inducement to any insurance<\/span> or annuity contract<\/span>, any rebate of premium payable on the contract<\/span>, any special favor or advantage in the dividends or other benefits on the contract<\/span>, any valuable consideration or inducement not specified in the contract<\/span>, except in accordance with an applicable rating plan authorized for use in this Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Give, sell, purchase, or offer to give, sell or purchase as inducement to insurance<\/span>, or annuity contracts<\/span>, or in connection with such contracts<\/span>, any stocks, bonds<\/span>, or other securities of any company<\/span>, any dividends or profits accrued on any stocks, bonds<\/span> or other securities of any company<\/span>, or anything of value not specified in the contract<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Receive or accept as inducement to insurance<\/span>, or annuity contracts<\/span>, any rebate of premium payable on the contract<\/span>, any special favor or advantage in the dividends or other benefit to accrue on the contract<\/span>, or any valuable consideration or inducement not specified in the contract<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Nothing in \u00a7 38.2-508<\/a> or in this section shall be construed to include within the definition of discrimination or rebates any of the following practices: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> In the case of any life insurance<\/span> or annuity contract<\/span>, paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance<\/span> if the bonuses or abatement of premiums are fair and equitable<\/span> to policyholders and in the best interests of the insurer<\/span> and its policyholders; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In the case of life or accident and sickness insurance policies<\/span> issued on the industrial debit plan, making allowance to policyholders who, for a specified period, have continuously made premium payments directly to an office of the insurer<\/span> in an amount that fairly represents the savings in collection expense; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Readjustment of the rate<\/span> of premium for a group insurance policy<\/span> based on the loss or expense experience under the policy, at the end of the first or any subsequent policy year of insurance; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In the case of insurers<\/span>, allowing their bona fide employees to receive a reduction on the premiums paid by them on policies or contracts<\/span> on their own lives and property, and on the lives and property of their spouses and dependent children; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Issuing life or accident and sickness policies or annuity contracts<\/span> on a salary savings or payroll deduction plan at a reduced rate<\/span> consistent with the savings made by the use of such plan; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Paying commissions<\/span> or other compensation to duly licensed agents or brokers; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Allowing or returning to participating policyholders, members or subscribers, dividends, savings or unabsorbed premium payments. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREBATES (\u00a7 38.2-509)\n\nA. Except as otherwise expressly provided by law, no person shall:\n\n 1. Knowingly permit, offer, or make any insurance or annuity contract or\n agreement which is not plainly expressed in the contract issued;\n\n 2. Pay, allow or give, or offer to pay, allow or give, directly or indirectly,\n as inducement to any insurance or annuity contract, any rebate of premium\n payable on the contract, any special favor or advantage in the dividends or\n other benefits on the contract, any valuable consideration or inducement not\n specified in the contract, except in accordance with an applicable rating plan\n authorized for use in this Commonwealth;\n\n 3. Give, sell, purchase, or offer to give, sell or purchase as inducement to\n insurance, or annuity contracts, or in connection with such contracts, any\n stocks, bonds, or other securities of any company, any dividends or profits\n accrued on any stocks, bonds or other securities of any company, or anything\n of value not specified in the contract; or\n\n 4. Receive or accept as inducement to insurance, or annuity contracts, any\n rebate of premium payable on the contract, any special favor or advantage in\n the dividends or other benefit to accrue on the contract, or any valuable\n consideration or inducement not specified in the contract.\n\nB. Nothing in \u00a7 38.2-508 or in this section shall be construed to include\nwithin the definition of discrimination or rebates any of the following\npractices:\n\n 1. In the case of any life insurance or annuity contract, paying bonuses to\n policyholders or otherwise abating their premiums in whole or in part out of\n surplus accumulated from nonparticipating insurance if the bonuses or\n abatement of premiums are fair and equitable to policyholders and in the best\n interests of the insurer and its policyholders;\n\n 2. In the case of life or accident and sickness insurance policies issued on\n the industrial debit plan, making allowance to policyholders who, for a\n specified period, have continuously made premium payments directly to an\n office of the insurer in an amount that fairly represents the savings in\n collection expense;\n\n 3. Readjustment of the rate of premium for a group insurance policy based on\n the loss or expense experience under the policy, at the end of the first or\n any subsequent policy year of insurance;\n\n 4. In the case of insurers, allowing their bona fide employees to receive a\n reduction on the premiums paid by them on policies or contracts on their own\n lives and property, and on the lives and property of their spouses and\n dependent children;\n\n 5. Issuing life or accident and sickness policies or annuity contracts on a\n salary savings or payroll deduction plan at a reduced rate consistent with the\n savings made by the use of such plan;\n\n 6. Paying commissions or other compensation to duly licensed agents or\n brokers; or\n\n 7. Allowing or returning to participating policyholders, members or\n subscribers, dividends, savings or unabsorbed premium payments.\n\nHISTORY: Code 1950, \u00a7 38.1-52; 1952, c. 317, \u00a7 38.1-52.8; 1977, c. 529; 1978,\nc. 441; 1979, c. 324; 1980, c. 404; 1986, c. 562.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}