69B-150.103. Definitions

For the purpose of these rules, the terms below are defined as follows:

(1) An “Advertisement” includes any method of communication listed in Sections 626.9541(1)(b)1. through 4., Florida Statutes.

(2) The definition of “Advertisement” does not include:

(a) Material to be used solely for the training and education of an insurer’s employees, agents, or brokers;

(b) Material used exclusively in-house by insurers;

(c) Communications within an insurer’s own organization not intended for dissemination to the public;

(d) Individual communications of a personal nature with current policyholders regarding existing coverage other than material urging such policyholders to renew, increase or expand coverages;

(e) Correspondence between a prospective group policyholder and an insurer in the course of negotiating a group contract;

(f) Court approved material ordered by a court to be disseminated to policyholders; or

(g) A general announcement from a group policyholder to eligible individuals on an employment or membership list which may include a brief description of coverage and is primarily a notification that a contract or program has been written or arranged; provided, the announcement must clearly indicate that it is preliminary to the issuance of a booklet, pamphlet, brochure or other similar paper preliminary to coverage by the insurer.

(3) “Application” means the form which must be filled in by the person seeking to effectuate an insurance policy.

(4) “Application Period” also includes any enrollment period.

(5) “Certificate” means any certificate issued under a group Life Insurance and Annuity Contract which certificate has been delivered or issued for delivery in this State.

(6) “Exception” means any provision in a policy whereby coverage for a specified hazard is entirely eliminated; it is a statement of a risk not assumed under the policy.

(7) “Institutional Advertisement” means an advertisement having as its sole purpose the promotion of the readers’, viewers’ or listeners’ interest in the concept of Life Insurance and Annuity Contracts or the promotion of the insurer as a seller of Life Insurance and Annuity Contracts.

(8) “Insurer” includes any individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds, fraternal benefit society, and any other legal entity which is defined as an “insurer” in the Insurance Code of this State.

(9) “Invitation to Contract” means an advertisement which is neither an institutional advertisement nor an invitation to inquire, and shall include any training or agent education materials when received by a prospective policyholder when such distribution was intended by the insurer for consumer use or distribution to the public regardless of any “agent use only” disclaimer language appearing on such materials.

(10)(a) “Invitation to Inquire” means an advertisement that:

1. Has as its objective the creation of a desire to inquire further about life insurance and annuity contracts;

2. Is limited to a brief description of coverage that shall include only:

a. A brief description of the loss for which benefits are payable;

b. The dollar amount of benefits payable; and

c. The period of time during which benefits are payable; and

3. Contains a provision in the following or substantially similar form: “This policy has (exclusions) (limitations) (reductions of benefits) (terms under which the policy may be continued in force or discontinued). For costs and complete details of the coverage call (or write) your insurance agent or the company.” (whichever is applicable)

(b) An invitation to inquire shall not:

1. Employ devices that are designed to create undue anxiety;

2. Exaggerate the value of the benefits available under the advertised policy;

3. State premium cost. If an advertisement which would otherwise be considered an invitation to inquire does state a cost, it shall be considered an invitation to contract pursuant to this rule chapter; or

4. Otherwise violate these rules or the Insurance Code.

(11) “Life insurance policy and annuity contract” includes any policy, plan, certificate, contract, agreement, statement of coverage, rider or endorsement which provides for life insurance or annuity contract benefits, or a combination thereof.

(12) “Limitation” means any provision which restricts coverage under the policy other than an exception or a reduction.

(13) “Person” means any natural person, association, organization, partnership, trust, group, discretionary group, corporation or any other entity.

(14) “Reduction” means any provision which reduces the amount of the benefit; this term includes a situation where a risk of loss is assumed, but payment upon the occurrence of such loss is limited to some amount or period less than would be otherwise payable had such reduction not been used.

Specific Authority 624.308(1), 626.9611, 627.805 FS. Law Implemented 624.307(1), 626.9541(1)(a), (b), (e), (g), (k), (l), 626.9641(1), 626.99, 627.460 FS. History–New 9-1-73, Formerly 4-35.03, Amended 6-12-88, 2-26-92, Formerly 4-35.003, Amended 5-27-96, 1-4-00, Formerly 4-150.103.