§4498. Misrepresentation

Link to law: http://legislature.vermont.gov/statutes/section/08/121/04498
Published: 2015

Print

The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

121

:
FRATERNAL BENEFIT SOCIETIES











 

§

4498. Misrepresentation

(a) No person

shall cause or permit to be made, issued, or circulated in any form:

(1) any

misrepresentation or false or misleading statement concerning the terms,

benefits or advantages of any fraternal insurance contract now issued or to be

issued in this state, or the financial condition of any society;

(2) any false or

misleading estimate or statement concerning the dividends or shares of surplus

paid or to be paid by any society on any insurance contract; or

(3) any incomplete

comparison of an insurance contract of one society with an insurance contract

of another society or insurer for the purpose of inducing the lapse,

forfeiture, or surrender of any insurance contract. A comparison of insurance

contracts is incomplete if it does not compare in detail:

(A) the gross

rates, and the gross rates less any dividend or other reduction allowed at the

date of the comparison; and

(B) any increase

in cash values, and all the benefits provided by each contract for the possible

duration thereof as determined by the life expectancy of the insured;

or if it omits

from consideration:

(C) any benefit

or value provided in the contract;

(D) any

differences as to amount or period of rates; or

(E) any

differences in limitations or conditions or provisions which directly or

indirectly affect the benefits.

(b) In any

determination of the incompleteness or misleading character of any comparison

or statement, it shall be presumed that the insured had no knowledge of any of

the contents of the contract involved.

(c) A person who

violates a provision of this section or knowingly receives any compensation or

commission by or in consequence of the violation, shall be punished by a fine

of not less than $500.00 nor more than $2,000.00 or by imprisonment not less

than 30 days nor more than one year, or both fine and imprisonment and shall in

addition, be liable for an administrative penalty in the amount of three times

the sum received by the violator as compensation or commission. (1959, No. 197,

§ 38, eff. Nov. 22, 1959; amended 1971, No. 199 (Adj. Sess.), § 17; 1995, No.

167 (Adj. Sess.), § 16.)
Read Entire Law on legislature.vermont.gov