Section 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.