Section 38-57-130 - Misrepresentations, special inducements, and rebates prohibited on all insurance contracts(1) No person may make, issue, circulate, or cause to be made, issued, or circulated any estimate, illustration, circular statement misrepresenting the terms of any policy issued or to be issued, the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon.(2) No person may make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies.(3) No person may pay, allow, or give or offer to pay, allow, or give, directly or indirectly, as inducement to the purchase or the renewal of an insurance contract, any rebate of premiums payable on the contract, any special favor or advantage in any benefits payable thereon, or any valuable consideration or inducement that is not specified in the contract.(4) Nothing in this section may be construed to permit an unfair method of competition or an unfair or deceptive act or practice.(5) Nothing in this section may be construed to prohibit an insurer or producer, by or through employees, affiliates or third-party representatives of value-added products or services at no or reduced cost when such products or services are not specified in the policy of insurance if the product or service: (a) relates to the insurance coverage; and(b) is primarily designed to satisfy one or more of the following: (i) provide loss mitigation or loss control;(ii) reduce claim costs or claim settlement costs;(iii) provide education about liability risks or risk of loss to persons or property;(iv) monitor or assess risk, identify sources of risk, or develop strategies for eliminating or reducing risk;(vi) enhance financial wellness through items such as education or financial planning services;(vii) provide post-loss services;(viii) incentivize behavioral changes to improve the health or reduce the risk of death or disability of a customer (defined for purposes of this subsection as policyholder, potential policyholder, certificate holder, potential certificate holder, insured, potential insured or applicant); or(ix) assist in the administration of the employee or retiree benefit insurance coverage.(c) The cost to the insurer or producer offering the product or service to any given customer must be reasonable in comparison to that customer's premiums or insurance coverage for the policy class.(d) If the insurer or producer is providing the product or service offered, the insurer or producer must ensure that the customer is provided with contact information to assist the customer with questions regarding the product or service.(e) The director may adopt regulations when implementing the permitted practices set forth in this statute to ensure consumer protection. Such regulation, consistent with applicable law, may address, among other issues, consumer data protections and privacy, consumer disclosure, and unfair discrimination.(f) The availability of the value-added product or service must be based on documented objective criteria and offered in a manner that is not unfairly discriminatory. The documented criteria must be maintained by the insurer or producer and produced upon request by the department.(g) If an insurer or producer does not have sufficient evidence but has a good faith belief that the product or service meets the criteria in this subitem, the insurer or producer may provide the product or service in a manner that is not unfairly discriminatory as part of a pilot or testing program for no more than one year. An insurer or producer must notify the department of such a pilot or testing program offered to consumers in this State prior to launching and may proceed with the program unless the department objects within twenty-one days of notice.(h) Information derived from the product or service offered under this subsection may not be used in underwriting the risk or to discriminate against any insured or potential insured.Amended by 2024 S.C. Acts, Act No. 180 (HB 4869),s 6, eff. 5/20/2024.Amended by 2024 S.C. Acts, Act No. 180 (HB 4869),s 5, eff. 5/20/2024.Amended by 2019 S.C. Acts, Act No. 6 (SB 360),s 8, eff. 7/1/2019.1964 (53) 2293] recodified as Section 38-57-130 by 1987 Act No. 155, Section 1; 1962 Code Section 37-1213; 1952 Code Section 37-1202; Former 1976 Code Section 38-55-130 [1947 (45) 322; 1978 Act No. 585 Section 13] recodified as Section 38-7-80 by 1987 Act No. 155, Section 1; 1962 Code Section 37-1161; 1952 Code Section 37-1161; Former 1976 Code Section 38-57-130 [1947 (45) 322.