Section 2324. Rebating and discrimination

(a) No authorized insurer, no
  licensed insurance agent, no licensed insurance broker, and no  employee
  or other representative of any such insurer, agent or broker shall make,
  procure  or  negotiate  any  contract of insurance other than as plainly
  expressed in the policy or other written contract issued or to be issued
  as evidence thereof, or shall  directly  or  indirectly,  by  giving  or
  sharing  a commission or in any manner whatsoever, pay or allow or offer
  to pay or allow to the insured or to any employee of the insured, either
  as an inducement to the making of insurance or after insurance has  been
  effected,  any rebate from the premium which is specified in the policy,
  or any special favor or advantage in the dividends or other  benefit  to
  accrue   thereon,   or   shall  give  or  offer  to  give  any  valuable
  consideration or inducement of any kind, directly or  indirectly,  which
  is  not  specified in such policy or contract, other than any article of
  merchandise not exceeding fifteen dollars  in  value  which  shall  have
  conspicuously  stamped  or  printed  thereon  the  advertisement  of the
  insurer, agent or broker, or shall give, sell or purchase, or  offer  to
  give, sell or purchase, as an inducement to the making of such insurance
  or  in  connection therewith, any stock, bond or other securities or any
  dividends or profits accrued thereon, nor shall the insured,  his  agent
  or  representative  knowingly  receive  directly or indirectly, any such
  rebate or special favor or  advantage,  provided,  however,  a  licensed
  insurance  agent  or  a  licensed  insurance broker may retain the usual
  commission or underwriting fee on insurance placed on his  own  property
  or risks, if the aggregate of such commissions or underwriting fees will
  not  exceed  five  percent  of the total net commissions or underwriting
  fees received by such  licensed  insurance  agent  or  insurance  broker
  during the calendar year.
    (b)  Within  the  meaning  of  subsection (a) hereof, the sharing of a
  commission with the insured shall be deemed to include any case in which
  a licensed insurance agent or a licensed insurance  broker  which  is  a
  subsidiary  corporation  of,  or  a  corporation  affiliated  with,  any
  corporation  insured,  received  commissions  for  the  negotiation   or
  procurement of any policy or contract of insurance for the insured.
    (c)  This  section  shall  not  prohibit  any  insurer  from equitably
  distributing to its policyholders  dividends  payable  from  surplus  on
  earned  premiums, nor prohibit the return at any time during the term or
  at the termination of the contract of insurance of dividends, savings or
  the unused or unabsorbed portion of premiums  and  premium  deposits  to
  policyholders  of  a  mutual  insurer  or to subscribers of a reciprocal
  insurer, nor  prohibit  any  insurer  or  insurance  agent  from  paying
  commissions  to  a licensed insurance broker for negotiating a policy or
  contract of insurance, nor prohibit any licensed insurance  broker  from
  sharing  or  dividing  a  commission  earned or received by him with any
  other licensed insurance broker or brokers who shall have aided  him  in
  respect to the insurance for the negotiation of which the commission has
  been earned or paid.
    (d)  This section shall not prohibit the making of temporary contracts
  of insurance, either by temporary binders or  other  memoranda,  if  the
  premium  applicable  to the insurance shall be due and shall be paid for
  the time during which the  insurance  is  in  force  by  virtue  of  the
  temporary contract.
    (e)  This  section  shall  not  apply  to  any  policy  or contract of
  reinsurance nor to any contract or policy of  life  insurance,  accident
  insurance  or  health  insurance  which  is subject to the provisions of
  section four thousand two hundred twenty-four of this  chapter,  nor  to
  any  contract  or  policy  of  marine insurance, other than contracts or
  policies of automobile insurance, or of marine protection and  indemnity

  insurance,  nor  to  any  insurance  contract,  or  rate of insurance in
  connection with any insurance contract either against loss or damage to,
  or legal liability in  connection  with,  any  property  located  wholly
  outside  of  this state or any activity carried on outside of this state
  or any motor vehicle or aircraft principally garaged and used outside of
  this state.
    (f) Any person or corporation violating the provisions of this section
  shall, in addition to all other penalties provided by law,  pay  to  the
  people  of  this  state as a penalty the sum of five hundred dollars for
  each such violation.