§ 27-210. Effect of §§ 27-208 and 27-209 of this subtitle

   (a) In general. -- Sections 27-208 and 27-209 of this subtitle may not be construed to include within the definition of discrimination or rebates any of the practices set forth in this section.

(b) Paying bonuses or abating premiums. -- For a contract of life insurance or an annuity contract, it is not discrimination or a rebate to pay bonuses to policyholders or otherwise abate their premiums wholly or partly out of the surplus accumulated from nonparticipating insurance, if the bonuses or abatement of premiums is fair, equitable to, and in the best interest of policyholders.

(c) Allowance for savings in collection expense. -- For policies of life insurance or health insurance issued on the industrial debit, preauthorized check, bank draft, or similar plans, it is not discrimination or a rebate to make an allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer or by preauthorized check, bank draft, or similar plans in an amount that fairly represents the savings in collection expense.

(d) Readjustment of rate of premium for group policy. -- It is not discrimination or a rebate to readjust the rate of premium for a group policy based on the loss or expense experience under the policy, at the end of any policy year, retroactive only for that policy year.

(e) Reducing premium rate for policies of large amount. -- It is not discrimination or a rebate to reduce the premium rate for policies of large amount, if the reduction does not exceed savings in issuance and administrative expenses reasonably attributable to policies of large amount as compared with policies of similar plan issued in smaller amounts.

(f) Salary savings, payroll deduction, or other distribution plans. -- It is not discrimination or a rebate to issue policies of life insurance or health insurance or annuity contracts on a salary savings or payroll deduction plan or other distribution plan at a reduced rate reasonably commensurate with the savings made by use of the plan.

(g) Increase in benefits for policies continuously in force. -- It is not discrimination or a rebate to issue policies of health insurance that provide for increases in benefits to policyholders who maintain their policies continuously in force without lapse for specified periods.

(h) Bona fide wellness program. --

   (1) In this subsection, "bona fide wellness program" has the meaning stated in § 15-509 of this article.

   (2) It is not discrimination or a rebate for a carrier to provide reasonable incentives to an individual who is an insured, a subscriber, or a member for participation in a bona fide wellness program offered by the carrier in accordance with § 15-509 of this article.

   (3) Any incentive offered for participation in a bona fide wellness program:

      (i) shall be reasonably related to the bona fide wellness program; and

      (ii) may not have a value that exceeds any limit established in regulations adopted by the Commissioner.

   (4) The Commissioner shall adopt regulations to implement the provisions of this subsection.

HISTORY: An. Code 1957, art. 48A, § 225; 1997, ch. 35, § 2; 2007, ch. 591; 2009, chs. 682, 683.