Section 38

Any person who, by any statement, promise or forecast which he knows to be misleading, false or deceptive, by any fraudulent concealment of a material fact or by the reckless making (fraudulently or otherwise) of any statement, promise or forecast which is misleading, false or deceptive, induces another person to enter into or offer to enter into any contract of insurance with an insurer shall be guilty of any offence and shall be liable on conviction to a fine not exceeding $50,000, imprisonment for a term not exceeding one year or both.

Requirements as to prospectuses and statements of capital.