§ 56-7-502 — Contingent and mortality endowment contracts - Promising particular number or position in class or to division to policyholder prohibited - Penalty

(a) No agent or organizer of any life insurance company, fraternal benefit society, order or association referred to in § 56-7-501 shall promise any particular number or position in class or division to any existing policyholder of contingent or mortality endowment contracts, as described in § 56-7-501 . (b) For violation of this section, agents shall be subject to revocation of license or shall pay a fine of fifty dollars ($50.00) on each individual violation, following a hearing before the commissioner; and, in the commissioner's discretion, the company that the agent represents shall be liable, following repeated violations by its agents operating in this state, to a fine not exceeding a total of two hundred fifty dollars ($250) in the commissioner's discretion following a hearing.

Legislative History

Acts 1939, ch. 31, § 2; mod. C. Supp. 1950, § 6459.2; impl. am. Acts 1971, ch. 137, § 2; T.C.A. (orig. ed.), § 56-1126.