Every insurer or insurance producer soliciting an offer to buy or selling life insurance in correlation with the sale of securities shall furnish the prospect with a clear and unambiguous written proposal prior to the signing of the application by the applicant.
The written proposal shall be dated and signed by the insurance producer, or by the insurer if no insurance producer is involved, and left with the prospect. The written proposal shall be on a form which has been filed with the Director of the Department of Consumer and Business Services. If a sale is made of both life insurance and securities, a duplicate copy of the written proposal left with the buyer shall be retained by the insurer for a period of not less than three years.
Each such proposal shall:
State the name of the insurer in which the life insurance is to be written;
State that the prospect has the right to purchase the life insurance only, the securities only or both the life insurance and the securities;
Contain no misrepresentations or false, deceptive or misleading words, figures or statements;
State all material facts without which the proposal would have the capacity or tendency to mislead or deceive; and
Set forth all matters pertaining to life insurance, including premium charges, separately from matters not pertaining to life insurance.
This section shall not be construed to affect the application of any other provision of law concerning or regulating securities. [Formerly 739.562; 2003 c.364 §139]