(a) No agent or organizer of any life insurance company, fraternal benefit society, order or association referred to in § 56-7-501 shall promise any particular number or position in class or division to any existing policyholder of contingent or mortality endowment contracts, as described in § 56-7-501.
(b) For violation of this section, agents shall be subject to revocation of license or shall pay a fine of fifty dollars ($50.00) on each individual violation, following a hearing before the commissioner; and, in the commissioner's discretion, the company that the agent represents shall be liable, following repeated violations by its agents operating in this state, to a fine not exceeding a total of two hundred fifty dollars ($250) in the commissioner's discretion following a hearing.