Misrepresentations and False Advertising Prohibited

(a) No person shall: (1) make, issue, circulate, or cause to be made, issued or circulated, any estimate, circular or statement misrepresenting the terms of any policy issued, or to be issued, or the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon; (2) make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies; (3) make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve upon which any life insurer operates; or (4) use any name or title of any policy or class of policies misrepresenting the true nature thereof. (b) Only the words in the carrier=s actual policy are actionable, and falsely written advertisements by the carrier about its actual policy shall not give rise to a cause of action against the carrier; provided, the carrier, or its licensed representative, is not in violation of Subsection (a) herein. SOURCE: Added as § 12111 by P.L. 26-56:1. Number changed by Compiler because § 12111 was already used on another subject.