38.2-502 - Misrepresentations and false advertising of insurance policies.
§ 38.2-502. Misrepresentations and false advertising of insurance policies.
No person shall make, issue, circulate, cause or knowingly allow to be made,issued or circulated, any estimate, illustration, circular, statement, salespresentation, omission, or comparison that:
1. Misrepresents the benefits, advantages, conditions or terms of anyinsurance policy;
2. Misrepresents the dividends or share of the surplus to be received on anyinsurance policy;
3. Makes any false or misleading statements as to the dividends or share ofsurplus previously paid on any insurance policy;
4. Misrepresents or is misleading as to the financial condition of any personor the legal reserve system upon which any life insurer operates;
5. Uses any name or title of any insurance policy or class of insurancepolicies that misrepresents the true nature of the policy or policies;
6. Misrepresents any material fact for the purpose of inducing or tending toinduce the lapse, forfeiture, exchange, conversion, replacement, or surrenderof any insurance policy;
7. Misrepresents any material fact for the purpose of effecting a pledge,assignment, or loan on any insurance policy; or
8. Misrepresents any insurance policy as being a share of stock.
(Code 1950, § 38.1-52; 1952, c. 317, § 38.1-52.1; 1977, c. 529; 1978, c. 441;1979, c. 324; 1980, c. 404; 1986, c. 562; 1990, c. 265.)