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

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.

[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.]