3637

No person shall cause or permit to be made, issued or circulated in any form:\n(a) Any misrepresentation or false or misleading statement concerning the terms, benefits or advantages of any fraternal insurance contract now issued or to be issued in Puerto Rico, or the financial condition of any society;\n(b) any false or misleading estimate or statement concerning the dividends or shares of surplus paid or to be paid by any society on any insurance contract, or\n(c) any incomplete comparison of an insurance contract of one society with an insurance contract of another society or insurer for the purpose of inducing the lapse or surrender of any insurance contract. A comparison of insurance contracts is incomplete if it does not compare in detail:\n(1) The gross rates, and the gross rates less any dividend or other reduction allowed at the date of the comparison; and\n(2) any increase in cash values, and all the benefits provided by each contract for the possible duration thereof as determined by the life expectancy of the insured; or if it omits from consideration:\n(3) any benefit or value provided in the contract;\n(4) any differences as to amount or period of rates; or\n(5) any

ermined by the life expectancy of the insured; or if it omits from consideration:\n(3) any benefit or value provided in the contract;\n(4) any differences as to amount or period of rates; or\n(5) any differences in limitations or conditions or provisions which directly or indirectly affect the benefits.\nIn any determination of the incompleteness or misleading character of any comparison or statement, it shall be presumed that the insured had no knowledge of any of the contents of the contract involved.\nAny person who violates any provision of this section or knowingly receives any compensation or commission by or in consequence of such violation shall upon conviction be punished by a fine not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment in jail not less than thirty (30) days nor more than one (1) year, or by both fine and imprisonment, and shall in addition be liable for a civil penalty in the amount of three (3) times the sum received by such violator as compensation or commission, which penalty may be sued for and recovered by any person or society aggrieved for his or its own use and benefit in accordance with the

e sum received by such violator as compensation or commission, which penalty may be sued for and recovered by any person or society aggrieved for his or its own use and benefit in accordance with the provisions of civil practice.\nHistory —Ins. Code, added as § 36.370 on June 13, 1964, No. 55, p. 122.