69O-203.050. Form and Content of Advertisements

(1) Advertising must be truthful and not misleading in fact or implication. Words or phrases shall be clear and understandable without reliance upon technical terminology.

(2) Testimonials or Endorsements by Third Parties. If the person making a testimonial, an endorsement, or an appraisal has a financial interest in the PLHSO or in a related entity as a stockholder, director, officer, employee, compensated party, or otherwise, such fact shall be disclosed in the advertisement.

(3) Use of Statistics.

(a) An advertisement relating to the dollar amounts of claims paid, the number of subscribers, or similar statistical information relating to any PLHSO or contract shall not use irrelevant facts, and shall not be used unless it accurately reflects all of the relevant facts. Such an advertisement shall not imply that such statistics are derived from the contract advertised unless such is the fact. If the statistics are applicable to other contracts or plans the advertisement shall specifically so state.

(b) An advertisement shall not represent or imply that claim settlements or coverages by the PLHSO are more liberal or generous, or will be more favorable than the actual terms of the contract.

(c) The source of any statistics used in an advertisement shall be identified in the advertisement.

(4) Disparaging Comparisons and Statements. Advertising shall not directly or indirectly make false comparisons of contracts or benefits of other PLHSOs or insurers, and shall not unfairly disparage competitors, their contracts, policies, services, or business methods, and shall not unfairly disparage competing methods or marketing PLHSO products or insurance.

(5) Geographical Licensing and Status of PLHSO.

(a) An advertisement which is likely to be seen or heard beyond the limits of the geographical service area in which the PLHSO is licensed shall not imply licensing beyond those limits.

(b) An advertisement shall not create the impression directly or indirectly that the PLHSO, its financial condition or status, the payment of its claims, the merits, desirability, or advisability of its contract forms, or the PLHSO’s coverage plans are endorsed by any division or agency of this State or of the United States Government.

(6) Identity of PLHSO.

(a) All advertisements must contain the full name of the PLHSO as filed with the Office and as shown on the PLHSO’s Certificate of Authority.

(b) The full name and address of the PLHSO shall be identified and made clear in all of its printed advertisements. An advertisement shall not use a trade name, any PLHSO designation, the name of the parent company of the PLHSO, the name of a particular division of the PLHSO, a service mark, slogan, symbol, or other device that misleads or deceives as to the true identity of the PLHSO.

(c) No advertisement shall use any combination of words, symbols, or physical materials which by their contents, phraseology, shape, color, or other characteristics are so similar to materials used by agencies of the federal government or of this State, or which would tend to confuse or mislead prospective subscribers into believing that the solicitation is in some manner connected with an agency of the municipal, state, or federal government.

(7) Statements about a PLHSO.

(a) An advertisement shall not contain statements which are untrue, or by implication misleading, with respect to the assets, corporate structure, financial standing, age, or relative position of the PLHSO in the Prepaid Limited Health Service Organization type insurance business.

(b) An advertisement shall not refer to a holding company or subsidiary of a PLHSO unless it fully discloses that it is a separate entity and not responsible for the PLHSO’s financial condition or contractual obligations. However, if the holding company or subsidiary of the PLHSO is a qualified, approved guaranteeing organization for the PLHSO, this may be stated.

(8) Exceptions, Reductions, and Limitations. When an advertisement states a dollar amount, or a period of time for which any benefit, or the condition for which such benefit is covered, the advertisement shall also state the existence of exceptions, reductions, and limitations affecting the basic provisions of the contract without which reference the advertisement might have the capacity or tendency to mislead or deceive.

(9) Deceptive Words, Phrases, or Illustrations Prohibited.

(a) Words, phrases, or illustrations shall not be used in a manner through which they mislead or have the capacity or tendency to deceive or mislead.

(b) No advertising shall omit or give false information, contain untrue, deceptive, or misleading words, phrases, statements, references, or illustrations as to the contract benefits, health conditions covered, or premium rate.

(c) An advertisement shall not contain descriptions of a contract limitation, exception, or reduction, worded in a positive manner to imply that it is a benefit. Words and phrases used in an advertisement to describe such contract limitations, exceptions, and reductions shall fairly and accurately describe the negative features of such limitations, exceptions, and reductions of the contract offered.

Specific Authority 636.067 FS. Law Implemented 636.033, 636.048, 636.058, 636.059, 641.3903 FS. History–New 11-15-94, Formerly 4-203.050.