J. MILLARD TAWES, Governor                     1089

(e)   Issuing life or health insurance policies or annuity contracts
on a salary savings or payroll deduction plan or other distribution
plan at reduced rate reasonably commensurate with the savings
made by the use of such plan.

(f)   Issuance of health insurance policies which provide for in-
creases in benefits to policyholders who maintain their policies con-
tinuously in force without lapse for specified periods.

226.    Unfair Discrimination, Rebates Prohibited—Property, Casualty,
Surety Insurances.

(a)   No insurer or any employee or representative thereof, and no
agent, broker or solicitor OR BROKER shall pay, allow, or give, or
offer to pay, allow or give, directly or indirectly, as an inducement to
insurance, or after insurance has been effected, any rebate, discount,
abatement, credit or reduction of the premium named in the policy of
insurance, or any special favor or advantage in the dividends or
other benefits to accrue thereon, or any valuable consideration or
inducement whatever, not specified in the policy, except to the extent
provided for in an applicable filing with the Commissioner as pro-
vided by law.

(b)   No insured named in a policy, nor any employee of such in-
sured shall knowingly receive or accept directly or indirectly, any
such rebate, discount, abatement, credit or reduction of premium, or
any such special favor or advantage or valuable consideration or in-
ducement.

(c)   No insurer shall make or permit any unfair discrimination be-
tween insureds or property having like insuring or risk characteris-
tics, in the premium or rates charged for insurance, or in the divi-
dends or other benefits payable thereon, or in any other of the terms
and conditions of the insurance.

(d)   Nothing in this section shall be construed as prohibiting the
payment of commissions or other compensation to duly licensed
agents, brokers or solicitors, OR BROKERS, or as prohibiting any
insurer from allowing or returning to its participating policyholders,
members or subscribers, lawful dividends, savings or unabsorbed
premium deposits.

(e)   This section shall not apply as to life and health insurance and
annuities.

227.    Twisting Prohibited.

No person shall make or issue, or cause to be made or issued, any
written or oral statement misrepresenting or making incomplete com-
parisons as to the terms, conditions, or benefits contained in any
policy for the purpose of inducing or attempting or tending to induce
the policyholder to lapse, forfeit, surrender, retain, exchange or con-
vert any insurance policy.

228.    Favored Agent or Insurer.

No person shall require as a condition precedent to loaning money
upon the security of any real or personal property, or to the renewal
or extension of any loan or mortgage, or to the selling of any property