69O-150.008. Testimonials or Endorsements by Third Parties

(1) Testimonials and endorsements used in advertisements must 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 therein, and the advertisement, including such statement is subject to all the provisions of these rules. When a testimonial or endorsement is used more than one year after it was originally given, a confirmation must be obtained.

(2) A person shall be deemed a “spokesperson” if the person making the testimonial or endorsement:

(a) Has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee or otherwise; or

(b) Is an entity formed by the insurer, is owned or controlled by the insurer, its employees, or the person or persons who own or control the insurer; or

(c) Is in a policy-making position who is affiliated with the insurer in any of the above described capacities; or

(d) Is in any way directly or indirectly compensated for making a testimonial or endorsement.

(3) Any person acting as a spokesperson, as defined in the preceding paragraph, who performs any of the following acts in an advertisement shall be considered soliciting an insurance product, and such person shall be a licensed insurance agent pursuant to the Florida Insurance Code:

(a) Solicits insurance or procures applications; or

(b) Engages or holds himself out as engaging in the business of analyzing or abstracting insurance policies; or

(c) Engages in counseling, advising, or giving opinions to persons relative to insurance contracts; or

(d) Performs an invitation to contract, except where performed by a company officer in a manner which does not violate Section 626.112(4), F.S.

(4) 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 thereto. If a spokesperson is directly or indirectly compensated for making a testimonial, endorsement or appraisal, such fact shall be disclosed by use of the phrase “Paid Endorsement” or words of similar import in a type style and size that is at least equal to that used for the spokesperson’s name or the body of the testimonial or endorsement, whichever is larger. In the case of television or radio advertising, the required disclosure must be accomplished in the introductory portion of the advertisement and must be given prominence, and if printed must be presented in a type style and size that is at least equal to the largest type otherwise used in the advertisement. The use of the phrase “Paid Endorsement” is not required where the spokesperson is a company officer who is paid generally but not specifically for making the advertisement.

(5) The disclosure requirements of this rule shall not apply where the sole financial interest or compensation of a spokesperson, for all testimonials or endorsements made on behalf of the insurer, consists of the payment of union “scale” wages required by union rules, and if the payment is actually for such “scale” for TV or radio performances.

(6) An advertisement shall not state or imply that an insurer or a policy has been approved or endorsed by any individual, group of individuals, society, association, or other organization, governmental agency or other entity, unless such is the fact, and unless any proprietary relationship between an organization and the insurer is disclosed. If the entity making the endorsement or testimonial has been formed by the insurer or is owned or controlled by the insurer or the person or persons who own or control the insurer, such fact shall be disclosed in the advertisement. If the insurer or an officer of the insurer formed or controls the association, or holds any policy-making position in the association, that fact must be disclosed.

(7) When a testimonial refers to benefits received under a policy for a specific claim, the specific claim data, including claim number, date of loss, and other pertinent information shall be retained by the insurer for inspection for a period of four years or until the filing of the next regular report on examination of the insurer, whichever is the longer period of time. The use of testimonials which do not correctly reflect the present practices of the insurer or which are not applicable to the policy or benefits being advertised is not permissible.

(8) The provisions of subsections (2), (3) and (4) of this section shall not apply to a written endorsement which does not describe specific benefits, coverages or premiums and which is made by an association of individuals which:

(a) Has been in existence for more than one year prior to making the written endorsement; and,

(b) Is formed for purposes other than soliciting insurance; and,

(c) Has a valid and bona fide governing constitution and by-laws; and,

(d) Has as its principal purpose some goal or objective other than providing or soliciting insurance, as determined by the Director in accordance with the procedures and requirements of Chapter 120, F.S., the Administrative Procedure Act.

Rulemaking Authority 624.308(1), 626.9611 FS. Law Implemented 624.307(1), 626.062, 626.830, 626.9541(1)(a), (b), (e), (k), (l), 626.9641(1) FS. History–New 1-19-73, Repromulgated 12-24-74, Formerly 4-6.08, Amended 6-13-88, Formerly 4-6.008, 4-150.008.