Illinois Administrative Code › Title 50 - INSURANCE › Part 909 - ADVERTISING AND SALES PROMOTION OF LIFE INSURANCE AND ANNUITIES › Section 909.50 - Disclosure Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 information required to be disclosed by this Part 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.
b) No advertisement shall omit material
			 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
			 the insurance, 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.
c) In the event an advertisement used
			 "Non-Medical," "No Medical Examination Required" or similar terms where issue
			 is not guaranteed, such 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.
d) An advertisement shall not use as the name
			 or title of a life insurance policy or an annuity, any phrase which does not
			 include the words "life insurance" or "annuity" unless accompanied by other
			 language clearly indicating it is life insurance.
e) An advertisement shall prominently include
			 the specific title of the type of the policy being marketed and such title
			 shall not be misleading as to the policy benefits.
f) An advertisement of an insurance policy
			 marketed by the direct response techniques shall not state or imply that
			 because there is no agent or commission included, there will be a cost savings
			 to prospective purchasers unless such is the fact. No such cost savings may be
			 stated or implied without justification satisfactory to the Insurance Director
			 prior to use.
g) An advertisement
			 for a 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, such fact shall be prominently
			 disclosed.
h) An advertisement for
			 a policy with non-level premiums shall prominently describe the premium
			 changes.
i) Dividends and Other
			 Non-Guaranteed Elements
1) An advertisement
			 shall not utilize or describe dividends or other non-guaranteed elements in a
			 manner which is misleading or has the capacity or tendency to
			 mislead.
2) An advertisement shall
			 not state or imply that the payment or amount of dividends is guaranteed. If
			 dividends or other non-guaranteed elements are illustrated they must be based
			 on the insurer's illustrated scale and the illustration must contain a
			 statement to the effect that they are not to be construed as guarantees or
			 estimates of dividends to be paid in the future.
3) An advertisement shall not state or imply
			 that illustrated dividends under a participating policy and/or pure endowments
			 will be or can be sufficient at any future time to assure, without the further
			 payment of premiums, the receipt of benefits, such as a paid-up policy, unless
			 the advertisement clearly and precisely explains:
A) what benefits or coverage would be
			 provided at such time, and
B) under
			 what conditions this would occur.