69O-150.107. Advertisements of Proceeds Payable, Premiums Payable, or Limited, Graded, or Modified Features

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

(a) No advertisement shall omit information or use words, phrases, statements, references or illustrations if such omission or such use has the capacity, tendency or effect of misleading or deceiving purchasers or prospective purchasers as to the nature or extent of any policy or contract benefit payable, loss covered or premium payable. The fact that the policy or contract offered is made available to a prospective insured for inspection prior to consummation of the sale or an offer is made to refund the premium if the purchaser is not satisfied, does not remedy misleading statements.

(b) Invitations to contract must clearly reflect the insurer, the agent, the policy form number(s), the type plan, premium payable, payment period, and if applicable, changes in face amounts and premiums.

(c) A simultaneous disclosure of the plan of insurance being offered shall be made in close proximity to the advertised face and premium amounts.

(d) An advertisement of life insurance sold by direct response shall not contain the phrase “no salesman will call,” or “no agent will call,” or “by eliminating the agent and/or commission we can offer this low cost plan,” or similar wording in a misleading manner.

(e) Full benefit policies or contracts may use the term “non-medical” or “no medical examination required” or similar terms where issue is not guaranteed, but this statement shall be accompanied by a further disclosure that health questions are required and that issuance of the policy or contract may depend upon evidence of insurability.

(f) A full explanation must be made of the use of units in which a common premium is specified and varying face amounts according to age are described.

(g) An advertisement which is an invitation to contract shall disclose those limitations affecting the basic provisions of the policy.

(h) An advertisement which also is an invitation to join an association, trust, or discretionary group must solicit insurance coverage on a separate and distinct application which requires separate signatures for each application. The insurance program must be presented so as not to mislead or deceive the prospective members regarding the fact that they are purchasing insurance as well as applying for membership, if that is the case. Any applicable membership fees or dues shall be disclosed on each such application and shall appear separately so as not to be construed as part of the premium for insurance coverage.

(i) An advertisement shall not refer to premium solely as a “deposit.”

(j) An advertisement containing an interest rate to be earned, rate of return to be earned, or yield to be earned, is prohibited unless all limitations and conditions which affect the ultimate rate of return earned by the policyholder/insured/beneficiary are disclosed prominently and conspicuously with equal emphasis to describe the interest rate, rate of return or yield.

(2) Limited, Graded or Modified Features.

(a) An advertisement for a policy or contract containing graded, modified or other limiting benefits shall fairly and accurately describe such negative features.

(b) If an insurer fails to require evidence of insurability as a condition for issuance of a policy or contract with graded, modified, or other limiting benefits an advertisement of such policy or contract shall not state or imply that the applicant’s physical condition or medical history will not affect the issuance of the policy or contract or payment of a claim thereunder. This rule prohibits the use of the phrases, “no medical examination required,” “no health questions asked,” and phrases of a similar import in a misleading manner, but does not prohibit explaining “guarantee issue” as long as it is done contiguous to and in a manner as prominent as the term being defined.

Rulemaking Authority 624.308(1), 626.9611 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 4-35.06, Amended 6-12-88, 2-26-92, Formerly 4-35.006, Amended 5-27-96, Formerly 4-150.107.