Section 500.2005 - MisrepresentationsAn unfair method of competition and an unfair or deceptive act or practice in the business of insurance means the making, issuing, circulating, or causing to be made, issued, or circulated, an estimate, illustration, circular, statement, sales presentation, or comparison which by omission of a material fact or incorrect statement of a material fact does any of the following:
(a) Misrepresents the terms, benefits, advantages, or conditions of an insurance policy.(b) Misrepresents the dividends or share of the surplus to be received on an insurance policy.(c) Makes a false or misleading statement as to the dividends or share of surplus previously paid on an insurance policy.(d) Makes a misleading statement or misrepresentation as to the financial condition of a person engaged in the business of insurance, or as to the legal reserve system upon which a life insurer operates.(e) Uses a name or title of an insurance policy or class of insurance policies misrepresenting the true nature of that insurance policy or class of insurance policies. A policy approved by the commissioner shall be conclusively presumed not to misrepresent the true nature of that policy.(f) Makes a misrepresentation for the purpose of inducing or tending to induce the lapse, forfeiture, exchange, conversion, or surrender of an insurance policy.(g) Makes a misrepresentation for the purpose of effecting a pledge or assignment of or a loan against an insurance policy.(h) Misrepresents an insurance policy as being a security. This subdivision shall not apply to an insurance policy which must be registered as a security pursuant to the law of this state or of the United States.(i) Misrepresents the nature or extent of coverage afforded an insurance policy or annuity contract by the Michigan life and health insurance guaranty association or the property and casualty guaranty association.1956, Act 218, Eff. 1/1/1957 ;--Am. 1976, Act 273, Eff. 4/1/1977 ;--Am. 1989, Act 302, Imd. Eff. 1/3/1990 .