# IN Bulletin 7: "Profit sharing" and coupon contracts prohibited practices

> Indiana · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/IN_INS_B_7

## Section

- **Citation:** IN Bulletin 7
- **Heading:** "Profit sharing" and coupon contracts prohibited practices
- **Jurisdiction:** Indiana
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Indiana Department of Insurance Bulletins / "Profit sharing" and coupon contracts prohibited practices

## Text

Bulletin 7
"PROFIT SHARING" AND COUPON CONTRACTS -- PROHIBITED PRACTICES
December 16, 1959
Since the issuance of our directive of June 3, 1959 on this subject, further careful study has been
given the matter, and we have sought the best available counsel thereon.
It is the unanimous opinion that while there is nothing wrong with Coupon Contracts per se,
further definite steps must be taken to eliminate certain misunderstandings which have arisen in their
presentation.
Therefore, on and after Feb. 1, 1960, the following regulations will apply to the sale of such
contracts in this State:
1.
The use of the words "Profits" and "Profit Sharing," or any similar expression, shall not
be used in any life insurance contract, or any rider attached thereto; nor shall "profit sharing" be featured
in any sales literature, or sales presentation, written or verbal.
2.
Any statements indicating "profits" from lapses and surrenders shall likewise be
eliminated.
3.
Any surplus distribution to policyholders must be explained as dividends, and their
source factually presented.
4. Coupons are not to be referred to in any manner as "profits" or "income in investment."
It is the intention of this Department to review such sales presentations as seem appropriate, and
order any necessary changes therein.
After the date mentioned above, if any company, or individual agent, is found using such
prohibited sales methods, literature, or contracts, appropriate action will be taken.
Alden C. Palmer
Insurance Commissioner

## Nearby sections

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- [IN Bulletin 5 Life insurance commissions - taking assignment/transfer by life agent](https://www.frixlaw.com/law-library/statutes/IN_INS_B_5.md)
- [IN Bulletin 6 Life insurance selling methods and materials - prohibited practices](https://www.frixlaw.com/law-library/statutes/IN_INS_B_6.md)
- [IN Bulletin 7 "Profit sharing" and coupon contracts prohibited practices](https://www.frixlaw.com/law-library/statutes/IN_INS_B_7.md)
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/IN_INS_B_7. Check the current official text before relying on it. Not legal advice.