NY Ins L § 4226 (2021)
2021 New York Laws ISC - Insurance Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies 4226 - Misrepresentations, Misleading Statements and Incomplete Comparisons by Insurers.

§  4226.  Misrepresentations,  misleading  statements  and  incomplete comparisons by insurers. (a) No insurer authorized to do in  this  state the  business  of  life,  or  accident  and health insurance, or to make annuity contracts shall:  (1) issue or circulate, or cause or permit to be issued or  circulated on  its  behalf,  any  illustration,  circular,  statement or memorandum misrepresenting the terms, benefits or advantages of any of its policies or contracts;  (2) make any  estimate  of  the  dividends  or  share  of  surplus  or additional amounts to be received on such policies or contracts;  (3)  make  any false or misleading statement of the dividends or share of surplus or additional amounts paid by any  such  insurer  on  similar policies or contracts;  (4)  make  any  misleading representation, or any misrepresentation of the financial condition of any such insurer  or  of  the  legal  reserve system upon which it operates; or  (5) make or deliver to any person or persons any incomplete comparison of  any  such  policies  or  contracts  for  the purpose of inducing, or tending to induce, such person or persons to lapse, forfeit or surrender any insurance policy or contract.  (6) replace the  individual  life  insurance  policies  or  individual annuity contracts of an insurer by the same or different insurer without conforming   to   the   standards   promulgated  by  regulation  by  the superintendent. Such regulation shall:  (A) specify what constitutes  the  replacement  of  a  life  insurance policy  or  annuity  contract and the proper disclosure and notification procedures to replace a policy or contract;  (B) require notification of the proposed replacement  to  the  insurer whose policies or contracts are intended to be replaced;  (C)  require  the timely exchange of illustrative and cost information required by section three thousand two hundred nine of this chapter  and necessary  for  completion  of a comparison of the proposed and replaced coverage; and  (D)  provide  for  a  sixty-day  period  following  issuance  of   the replacement  policies  or  contracts during which the policy or contract owner may return the policies or contracts and  reinstate  the  replaced policies or contracts.  (b) Any comparison of the policies or contracts of any such insurer or insurers  shall  be deemed to be an incomplete comparison if it does not conform to all the  requirements  for  comparisons  established  by  the superintendent by regulation.  (c) In any determination, judicial or otherwise, of the incompleteness or  misleading character of any such comparison or of representation, it shall not be presumed that the insured knew  or  knows  of  any  of  the provisions or benefits contained in any insurance policy or contract.  (d)  Any  such  insurer  that knowingly violates any provision of this section, or knowingly receives any  premium  or  other  compensation  in consequence  of  such  violation shall, in addition to any other penalty provided in this chapter, be liable to a penalty in the amount  of  such premium  or compensation, which penalty may be sued for and recovered by any person aggrieved for his own use and benefit, in accordance with the provisions of the civil practice law and rules.