§3846. Advertising for life settlements

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03846
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

103

:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS






Subchapter

005B
:
LIFE SETTLEMENTS










 

§

3846. Advertising for life settlements

(a) No person

engaged in the business of life settlements shall make, issue, circulate, or

cause to be made, issued, or circulated, or placed before the public, in a

newspaper, magazine, or other publication, in the form of a notice, circular,

pamphlet, letter, or poster or over any radio station or television station, or

by Internet, or in any other way, any estimate, illustration, circular,

statement, sales presentation, omission, or comparison, which:

(1) misrepresents

or fails to adequately disclose the benefits, advantages, conditions,

exclusions, limitations, or terms of any life settlement contract;

(2) uses any

name or title of any life settlement contract or class of life settlement

contracts misrepresenting the true nature thereof; or

(3) is a

misrepresentation for the purpose of inducing or tending to induce a policy

owner to enter into a life settlement contract in violation of the provisions

of this chapter;

(4) is

inaccurate, untruthful, deceptive or misleading in fact or by implication. The

form and content of an advertisement of a life settlement contract shall be

sufficiently complete and clear so as to avoid deception. It shall not have the

capacity or tendency to mislead or deceive. Whether an advertisement has the

capacity or tendency to mislead or deceive shall be determined from the overall

impression that the advertisement may be reasonably expected to create upon a

person of average education or intelligence within the segment of the public to

which it is directed;

(5) directly or

indirectly markets, advertises, solicits, or otherwise promotes the purchase of

a policy for the purpose or, or with an emphasis on entering into a life

settlement contract; or

(6) uses the

word "free," "no cost," "without cost," "no

additional cost," "at no extra cost," or words of similar import

in the marketing, advertising, soliciting or otherwise promoting of the

purchase of a policy.

(b) Every life

settlement licensee shall establish and at all times maintain a system of

control over the content, form, and method of dissemination of all

advertisements of its contracts, products, and services. All advertisements,

regardless of who wrote, created, designed, or presented them, shall be the

responsibility of the life settlement licensees as well as the individual who

created or presented the advertisement. A system of control shall include

regular routine notification, at least once a year, to agents and others

authorized by the life settlement licensee who disseminate advertisements of

the requirements and procedures for approval by the life settlement licensee

prior to the use of any advertisements not furnished by the life settlement

licensee.

(c) The name of

the life settlement licensee shall be clearly identified in all advertisements

about the licensee or its life settlement contract, products, or services, and

if any specific life settlement contract is advertised, the life settlement

contract shall be identified either by form number or some other appropriate description.

If an application is part of the advertisement, the name of the life settlement

provider shall be shown on the application.

(d) If the

advertising emphasizes the dollar amounts available to policy owners, the

advertising shall disclose the average purchase price as a percent of face

value obtained by policy owners contracting with the licensee during the past

six months.

(e) The fact

that the life settlement contract offered is made available for inspection

prior to consummation of the sale, or that an offer is made to refund the

payment if the policy owner is not satisfied, or that the life settlement

contract includes a "free look" period that satisfies or exceeds

legal requirements does not remedy any inaccurate, untruthful, deceptive or

misleading statements. (Added 2009, No. 53, § 1, eff. Jan. 1, 2010.)
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