A person may not make, issue, circulate, or cause to be made, issued, or circulated any estimate, illustration, circular, sales presentation, omission, comparison, or statement that:

1. (1) misrepresents the benefits, advantages, conditions, or terms of any insurance policy;
2. (2) misrepresents the dividends or share of the surplus to be received on any insurance policy;
3. (3) makes any false or misleading statement as to the dividends or share of surplus previously paid on any insurance policy;
4. (4) is misleading or is a misrepresentation as to the financial condition of any person or as to the legal reserve system upon which any life insurer operates;
5. (5) uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature of the policy or class of policies;
6. (6) is a misrepresentation, including any intentional misquote of the premium rate, for the purpose of inducing or tending to induce the purchase, lapse, forfeiture, exchange, conversion, or surrender of any insurance policy;
7. (7) is a misrepresentation for the purpose of effecting a pledge or assignment of or effecting a loan against any insurance policy;
8. (8) misrepresents any insurance policy as being shares of stock; or
9. (9) offers or provides insurance as an inducement to the purchase of another policy or otherwise uses certain terms including but not limited to "free" or "no cost".

History: En. Sec. 205, Ch. 286, L. 1959; R.C.M. 1947, 40-3503; amd. Sec. 1, Ch. 9, L. 1979; amd. Sec. 4, Ch. 229, L. 2025.