Vermont § 4498 - Misrepresentation

§ 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 that 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. (Added 1959, No. 197, § 38, eff. Nov. 22, 1959; amended 1971, No. 199 (Adj. Sess.), § 17; 1995, No. 167 (Adj. Sess.), § 16.)