NAIC Advertisements of Life Insurance and Annuities Model Regulation (#570)

What this document is

NAIC Advertisements of Life Insurance and Annuities Model Regulation (#570) 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 #570 (advertising standard)

  “Advertisements shall be truthful and not misleading in fact or by implication. The form and content of an advertisement of a policy shall be sufficiently complete and clear so as to avoid deception.”

• NAIC Model #570: Section 5.R (Disclosure Requirements)

  “An advertisement shall not contain statistical information relating to any insurer or policy unless it accurately reflects recent and relevant facts. The source of any statistics used in advertisement shall be identified.”

• NAIC Model #570: Section 5.M (Disclosure Requirements)

  “The words “free,” “no cost,” “without cost,” “no additional cost, “at no extra cost,” or words of similar import shall not be used with respect to any benefit or service being made available with a policy unless true. If there is no charge to the insured, then the identity of the payor shall be...”

• NAIC Model #570: Section 5.Q (Disclosure Requirements)

  “If the individual making a testimonial, appraisal, analysis or an endorsement has a financial interest in the insurer or related entity as a stockholder, director, officer, employee or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall...”

• NAIC Model NAIC 570: Section 6C (Identity of Insurer)

  “An advertisement shall not use any combination of words, symbols or physical materials that by their content, phraseology, shape, color or other characteristics are so similar to a combination of words, symbols or physical materials used by a governmental program or agency or otherwise appear to be...”

• NAIC Model NAIC 570, Section 6B (Identity of Insurer)

  “An advertisement shall not use a trade name, an insurance group designation, name of the parent company of the insurer, name of a particular division of the insurer, a reinsurer of the insurer, service mark, slogan, symbol or other device or reference without disclosing the name of the insurer, if...”

• NAIC Model NAIC 570: Section 5O(8) (Dividends)

  “An advertisement may not state or imply that illustrated dividends under either or both a participating policy or pure endowment will be or can be sufficient at any future time to assure without the future payment of premiums, the receipt of benefits, such as a paid-up policy, unless the...”

• NAIC Model NAIC 570: Section 5Q(1) (Testimonials)

  “Testimonials, appraisals or analysis used in advertisements must be genuine; represent the current opinion of the author; be applicable to the policy advertised, if any; and be accurately reproduced with sufficient completeness to avoid misleading or deceiving prospective insureds as to the nature...”

• NAIC Advertisements of Life Insurance and Annuities Model Regulation, Section 5O(7) (dividends described as tax-free)

  “An advertisement shall not refer to dividends as “tax-free” or use words of similar import, unless the tax treatment of dividends is fully explained and the nature of the dividend as a return of premium is indicated clearly.”

• NAIC Advertisements of Life Insurance and Annuities Model Regulation, Section 4A: advertisements shall be truthful and not misleading

  “Advertisements shall be truthful and not misleading in fact or by implication. The form and content of an advertisement of a policy shall be sufficiently complete and clear so as to avoid deception. It shall not have the capacity or tendency to mislead or deceive. Whether an advertisement has the...”

• NAIC Advertisements of Life Insurance and Annuities Model Regulation § 6A (Identity of Insurer)

  “The name of the insurer shall be clearly identified in all advertisements about the insurer or its products, and if any specific individual policy is advertised it shall be identified either by form number or other appropriate description.”

• NAIC Advertisements of Life Insurance and Annuities Model Regulation § 5C (Disclosure Requirements; non-medical terms)

  “In the event an advertisement uses “non-medical,” “no medical examination required,” or similar terms where issue is not guaranteed, terms shall be accompanied by a further disclosure of equal prominence and in juxtaposition thereto to the effect that issuance of the policy may depend upon the...”

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