Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-11 - ADVERTISING OF LIFE INSURANCE AND ANNUITY CONTRACTS › Rule 120-2-11-.10 - Misleading Statements, Representations and Illustrations Prohibited

Current through Rules and Regulations filed through June 27, 2024
(1) No insurer,
				agent or counselor shall in connection with the consultation, service or
				advertisement of a policy:
(a) State,
				represent or imply that a prospective policyholder or certificateholder will
				receive the right to benefits which are not a part of the policy itself, or
				made an effective part of the policy by rider or other instrument approved by
				and on file with the Georgia Insurance Department;
(b) Represent or imply that any financial
				ratio, illustrative material or advertisement, including pictures, diagrams,
				charts, projections, or other material, has been approved or sanctioned by the
				Georgia Insurance Department;
(c)
				Make or issue any statement or representation that premiums paid are ever
				withdrawable without reference to the cash surrender value or loan provisions
				of the policy, or in any manner other than that expressly contained in the
				policy form, except that premiums paid in advance of the current due date may
				be withdrawn under the conditions of the prepayment agreement;
(d) State, represent or imply that profits
				are derived from lapses and surrenders;
(e) Represent that the mere size of a life
				insurance company or its total insurance in force necessarily affects either
				the solvency or the reliability of life insurance or annuity policies issued by
				such insurer;
(f) Make or issue any
				statement which would lead a prospective buyer or policyholder of life
				insurance or annuity to believe that he is purchasing stock in an insurance
				company by acquiring such life insurance or annuity;
(g) Make or issue any statement which will
				tend to lead a prospective buyer or policyholder to believe that, by purchasing
				a policy, he will acquire a position similar to that of a stockholder of the
				company, or make or issue any statement which permits the inference that
				policyholders are entitled to benefits or profits on the same basis as
				stockholders;
(h) State or
				represent that a prospective policyholder will receive dividends, or special or
				favored treatment in the allowance or payment of dividends, or other monetary
				benefits not expressly provided in the policy;
(i) Make or issue statements or illustrations
				of projected future dividends unless the dividend formula or dividend scale
				upon which such statements or illustrations were made complies with the
				applicable provisions of the Georgia Insurance Code and the Rules and
				Regulations of the Georgia Insurance Department;
(j) Make or issue statements indicating that
				because a prospect has agreed to furnish leads, he is entitled to any specific
				benefits not available to all policyholders generally;
(k) Represent as a return of premium or as a
				return of cash surrender value an increasing term insurance provision in any
				insurance policy, such as an amount of insurance equal to the sum of premiums
				paid to a certain date, or as an amount of insurance equal to the cash
				surrender value, as anything other than a guaranteed insurance benefit, a
				charge for which is included in the premium;
(l) Use a dollar amount or any other figure
				in printed material to be shown to prospective policyholders unless accompanied
				by language in such material indicating the nature and source of the
				figure;
(m) State or imply that a
				policy contains features or benefits which are not found in other life
				insurance policies, unless that be true;
(n) Make any reference or statement implying
				that a policy is sold or issued or is serviced by the investment department of
				an insurer; and
(o) Use terms such
				as financial planner, investment advisor, financial consultant, or financial
				counseling in such a way as to imply that the person who is engaged in the
				business of insurance is generally engaged in an advisory business in which
				compensation is unrelated to sales unless such is actually the case. During the
				solicitation of, negotiation for, or procurement or making of a contract of
				life insurance or annuity contract, no person may engage, advertise, or render
				opinions as to the benefits promised under any contract of insurance or offered
				by any insurer, or as to the terms, value, effect, advantages or disadvantages
				thereof unless such person is properly licensed in accordance with Chapters
				33-23-1 to 33-23-22 of the Georgia Insurance Code. Further, no person engaged
				in the business of insurance may hold himself out, directly or indirectly, to
				the public as a financial planner, investment advisor, financial consultant, or
				financial counselor or as any other specialist engaged in the business of
				giving complete financial planning advice relating to investments, insurance,
				real estate, tax matters and trust and estate matters unless such person in
				fact is generally engaged in such business and does, in fact, render such
				services. Not included in "such services" is the presentations of computer
				printouts that fall into the category of advanced programming for the purpose
				of selling a policy and are routinely provided by insurers or other
				organizations. Terms such as financial planner, investment advisor, financial
				consultant, or financial counselor may not be used by a person engaged in the
				business of insurance where such person provides advice relating to
				investments, real estate, tax matters and trust and estate matters, which is
				merely incidental to the conduct of his insurance business.