Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-132 - ADVERTISEMENTS OF LIFE INSURANCE AND ANNUITIES REGULATION › Section 482-1-132-.06 - Disclosure Requirements

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 information required to be disclosed by this chapter shall not be minimized,
			 rendered obscure, or presented in an ambiguous fashion or intermingled with the
			 text of the advertisement so as to be confusing or misleading.
(2) An advertisement shall not omit material
			 information or use words, phrases, statements, references or illustrations if
			 the omission or use has the capacity, tendency or effect of misleading or
			 deceiving purchasers or prospective purchasers as to the nature or extent of
			 any policy benefit payable, loss covered, premium payable, or state or federal
			 tax consequences. The fact that the policy 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 in an advertisement.
(3) 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 answers to the health questions set forth in the
			 application.
(4) An advertisement
			 shall not use as the name or title of a life insurance policy any phrase that
			 does not include the words "life insurance" unless accompanied by other
			 language clearly indicating it is life insurance. An advertisement shall not
			 use as the name or title of an annuity contract any phrase that does not
			 include the word "annuity" unless accompanied by other language clearly
			 indicating it is an annuity. An annuity advertisement shall not refer to an
			 annuity as a CD annuity, or deceptively compare an annuity to a certificate of
			 deposit.
(5) An advertisement shall
			 prominently describe the type of policy advertised.
(6) An advertisement of an insurance policy
			 marketed by direct response techniques shall not state or imply that because
			 there is no insurance producer or commission involved there will be a cost
			 saving to prospective purchasers unless that is the fact. No cost savings may
			 be stated or implied without justification satisfactory to the commissioner
			 prior to use.
(7) An advertisement
			 for a life insurance policy containing graded or modified benefits shall
			 prominently display any limitation of benefits. If the premium is level and
			 coverage decreases or increases with age or duration, that fact shall be
			 commonly disclosed. An advertisement of or for a life insurance policy under
			 which the death benefit varies with the length of time the policy has been in
			 force shall accurately describe and clearly call attention to the amount of
			 minimum death benefit under the policy.
(8) An advertisement for the types of
			 policies described in Subparagraphs (6) and (7) of this rule shall not use the
			 words "inexpensive," "low cost," or other phrase or words of similar import
			 when the policies being marketed to persons who are fifty (50) or older are
			 guaranteed issue.
(9) Premiums
(a) An advertisement for a policy with
			 non-level premiums shall prominently describe the premium changes.
(b) An advertisement in which the insurer
			 describes a policy where it reserves the right to change the amount of the
			 premium during the policy term, but which does not prominently describe this
			 feature, is deemed to be deceptive and misleading and is prohibited.
(c) An advertisement shall not contain a
			 statement or representation that premiums paid for a life insurance policy,
			 except that reference to the cash surrender value or loan provisions of the
			 policy as representing prepaid mortality costs is permissible, can be withdrawn
			 under the terms of the policy. Reference may be made to amounts paid into an
			 advance premium fund, which are intended to pay premiums at a future time, to
			 the effect that they may be withdrawn under the conditions of the prepayment
			 agreement. Reference may also be made to withdrawal rights under any
			 unconditional premium refund offer.
(d) An advertisement that represents that a
			 pure endowment benefit has a "profit" or "return" on the premium paid, rather
			 than a policy benefit for which a specified premium is paid is deemed to be
			 deceptive and misleading and is prohibited.
(e) An advertisement shall not represent in
			 any way that premium payments will not be required for each year of the policy
			 in order to maintain the illustrated death benefits, unless that is the
			 fact.
(f) An advertisement shall
			 not use the term "vanish" or "vanishing premium," or a similar term that
			 implies the policy becomes paid up, to describe a plan using nonguaranteed
			 elements to pay a portion of future premiums.