2005 Idaho Code - 41-1303 — MISREPRESENTATION OR FALSE ADVERTISING OF POLICIES

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 13
                          TRADE PRACTICES AND FRAUDS
    41-1303.  MISREPRESENTATION OR FALSE ADVERTISING OF POLICIES. (1) No
person shall 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, or
make any false or misleading statement as to the dividends or share of surplus
previously paid on similar policies, or make any misleading representation or
any misrepresentation as to the financial condition of any insurer, or as to
the legal reserve system upon which any life insurer operates, or use any name
or title of any policy or class of policies misrepresenting the true nature
thereof.
    (2)  No person shall misrepresent a policy for the purpose of effecting a
pledge or assignment of, or effecting a loan against, any insurance policy.
    (3)  No person shall misrepresent any insurance policy as being shares of
stock.
    (4)  For reasonable cause the director may in his discretion require any
insurer or agent using or proposing to use in this state a prospectus,
offering sheet, or other sales literature or printed sales aids in the
solicitation of life or disability insurance to file the same with him for
review. The director shall forthwith by order disapprove any such prospectus,
sheet, literature, or aid found by him to be in violation of this section. The
order shall become effective on the effective date specified therein, which
date shall not be less than ten (10) days after the date the order was issued
and mailed to the insurer or agent affected thereby; except, that if the
insurer or agent prior to such effective date makes written request to the
director for a hearing relative to the matter the director's order shall
thereby be stayed pending the hearing and the director's further order on
hearing. No insurer, agent, or other representative shall use in this state
any prospectus, offering sheet, literature or sales aid after the date an
order of disapproval thereof has become effective and has been communicated to
the insurer. This provision shall not relieve any person of liability for
penalties provided for violation of subsection (1) above.