Chap. 250.—An ACT to prohibit corporations, associations and societies and the
agents, representatives, officers and directors thereof or therefor, from making
certain misrepresentations and circulating false literature concerning the value,
contents or provisions of certain insurance policies or certificates; prohibiting
the making of any misrepresentations or issuance of any statements in regard
to the value or contents of any policy of any company or association for the
purpose of causing said policy to be forfeited, lapsed or surrendered; prohibit-
ing, causing or permitting of same to be done by such persons generally ;
prescribing offenses, fines, penalties and punishment. [S B 26]

Approved March 23, 1932

1. Be it enacted by the general assembly of Virginia, That no life,
health or casualty insurance corporation, including corporations operat-
ing on the co-operative or assessment plan, mutual insurance companies,
and fraternal benefit associations or societies, and any other societies
or associations authorized to issue insurance policies in this State, and
no officer, director, representative or agent therefor or thereof, or any
other person, corporation or co-partnership, shall issue or circulate or
cause or permit with their knowledge and consent to be issued or cir-
culated, any illustrated circular or statement of any sort, misrepresent-
ing the terms of any policy issued by any such corporation or associa-
tion or any certificate of membership issued by any such society or
corporation, or other benefits or advantages permitted tnereby, OF Ally
misleading statement of the dividends or share of surplus to be re-
ceived thereon, or shall use any name or title of any policy or class of ,
policies, or certificate of membership or class of such certificate, mis-
representing the true nature thereof. Nor shall any such corporation,
society or association, or officer, director, agent or representative there-
of, or any other person, make any misleading representations or incom-
plete comparisons of policies or certificates of membership to any per-
son insured in any corporation, association or society, or member there-
of, for the purpose of inducing or tending to induce. such person to
lapse, forfeit or surrender his said insurance or membership therein.

2. If any person shall violate any of the provisions of section one
hereof, he shall be guilty of a misdemeanor, and upon conviction, shall
be fined not less than twenty-five dollars nor more than five hundred
dollars. , , ,

3. Whenever the commissioner of insurance and banking of this
State shall receive information of any violation of any of the provisions
of section one hereof, upon affidavit of the party or parties preferring
the charge, it shall be his duty, in person or by an assistant, to forth-
with cause an investigation of the correctness of such charge or charges
of violation of section one hereof, and if and when he shall determine
that such charge or charges so made against any such corporation,
association or person should be heard and determined by the State
corporation commission, he shall refer same to it. Whereupon the
State corporation commission, upon giving ten days’ notice by summons
and upon a hearing had for that purpose, may revoke or suspend the
permit or license to do business of any corporation or association men-
tioned in section one violating the provisions hereof, and many revoke
or suspend likewise the license or certificate of any person to write such
insurance, where a certificate is required by law. But if the com-
mission revoke or suspend the permit or license of any such corpora-
tion, association or person, then such a one may, as a matter of right,
appeal to the supreme court of appeals from such final order as the
commission may make with reference thereto.