Advertisements of Accident and Sickness Insurance Model Regulation

What this document is

Advertisements of Accident and Sickness Insurance Model Regulation is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NAIC Model NAIC 040: Section 6A(4) (Covered Benefits)

  “An advertisement shall not contain or use words or phrases such as “all,” “full,” “complete,” “comprehensive,” “unlimited,” “up to,” “as high as,” “this policy will help fill some of the gaps that Medicare and your present insurance leave out,” “the policy will help to replace your income,” (when...”

• NAIC Model NAIC 040: Section 6B(2) (Exceptions, Reductions and Limitations)

  “An advertisement that is an invitation to contract shall disclose those exceptions, reductions and limitations affecting the basic provisions of the policy.”

• NAIC Model NAIC 040: Section 9A (Testimonials or Endorsements)

  “A. Testimonials and endorsements used in advertisements shall be genuine, represent the current opinion of the author, be applicable to the policy advertised and be accurately reproduced. The insurer, in using a testimonial or endorsement, makes as its own all of the statements contained in it, and...”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation § 3B(2); definition of advertisement, renewals and reinstatements

  “The definition of “advertisement” includes advertising material included with a policy when the policy is delivered and material used in the solicitation of renewals and reinstatements.”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation § 6B(1); exceptions, reductions and limitations worded positively

  “(1) An advertisement shall not contain descriptions of policy limitations, exceptions or reductions, worded in a positive manner to imply that it is a benefit, such as describing a waiting period as a “benefit builder” or stating “even preexisting conditions are covered after two years.” Words and...”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation, Section 4B: method of disclosure under appropriate captions

  “B. Disclosure not in conjunction with the provisions describing policy benefits but under appropriate captions of such prominence that the information shall not be minimized, rendered obscure or otherwise made to appear unimportant. The phrase “under appropriate captions” means that the title must...”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation, Section 9C: disclosure of spokesperson compensation

  “The fact of a financial interest or the proprietary or representative capacity of a spokesperson shall be disclosed in an advertisement and shall be accomplished in the introductory portion of the testimonial or endorsement in the same form and with equal prominence. If a spokesperson is directly...”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation, Section 6A(3): covered benefits, omissions and misleading statements

  “An advertisement shall not omit information or use words, phrases, statements, references or illustrations if the omission of information or use of words, phrases, statements, references or illustrations has the capacity, tendency or effect of misleading or deceiving purchasers or prospective...”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation, Section 10C: identification of the source of statistics

  “The source of any statistics used in an advertisement shall be identified in the advertisement.”

• NAIC Advertisements of Accident and Sickness Insurance Model Regulation § 14A (identity of insurer - name and policy form number)

  “The name of the actual insurer shall be stated in all of its advertisements. The form number or numbers of the policy advertised shall be stated in an advertisement that is an invitation to contract. An advertisement shall not use a trade name, an insurance group designation, name of the parent...”

• Advertisements of Accident and Sickness Insurance Model Regulation § 14L (advertisements used by producers require insurer approval)

  “Advertisements used by agents, producers, brokers or solicitors of an insurer shall have prior written approval of the insurer before they may be used.”

• Advertisements of Accident and Sickness Insurance Model Regulation § 14M (contact following a lead-generating device)

  “An agent who makes contact with a consumer, as a result of acquiring that consumer’s name from a lead-generating device, shall disclose that fact in the initial contact with the consumer. An agent or insurer may not use names produced from lead-generating devices that do not comply with the...”

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