(a) Except as provided by this subchapter, an insurer or agent may not, with respect to business written in this state:
(1) knowingly permit the making of, offer to make, or make a life insurance policy or annuity contract or an agreement regarding the policy or contract, other than as plainly expressed in the issued policy or contract;
(2) directly or indirectly pay, give, or allow or offer to pay, give, or allow as inducement to enter into a life insurance policy or annuity contract either:
(A) a rebate of premiums payable on the policy or contract; or
(B) a special favor or advantage in the dividends or other benefits of the policy or contract or a valuable consideration or inducement not specified in the policy or contract; or
(3) give, sell, or purchase or offer to give, sell, or purchase in connection with a life insurance policy or annuity contract or as inducement to enter into the policy or contract:
(A) stocks, bonds, or other securities of an insurer or other corporation, association, or partnership;
(B) dividends or profits accrued from the stocks, bonds, or securities; or
(C) anything of value not specified in the contract.
(b) An insurer may not permit an agent, officer, or employee to issue or deliver as an inducement to enter into a life insurance policy or annuity contract:
(1) company stock or other capital stock;
(2) a benefit certificate or share in a corporation;
(3) a security; or
(4) a special or advisory board contract or any other contract promising returns or profits.
(c) This section does not prohibit issuing or delivering a participating insurance policy or annuity contract otherwise authorized by law.