California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 12 - Disability Insurance Advertisements › Section 2536.9 - Identity of Insurer

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  name of the actual insurer shall be stated in all of its advertisements. The
				  form number or numbers of the policy advertised shall be stated in an
				  advertisement which is an invitation to contract. An advertisement shall not
				  use a trade name, any insurance group designation, name of the parent company
				  of the insurer, name of a particular division of the insurer, service mark,
				  slogan, symbol or other device which without disclosing the name of the actual
				  insurer would have the capacity and tendency to mislead or deceive as to the
				  true identity of the insurer.
(b)
				  No advertisement shall use any combination of words, symbols, or physical
				  materials which by their content, phraseology, shape, color or other
				  characteristics are so similar to combination of words, symbols, or physical
				  materials used by agencies of the federal government or of this State, or
				  otherwise appear to be of such a nature that it tends to confuse or mislead
				  prospective insureds into believing that the solicitation is in some manner
				  connected with an agency of the municipal, state, or federal government.
GUIDELINE 2536.9
This Section prohibits the use of an advertisement which
					 has the capacity or tendency to mislead or deceive as to the true identity of
					 the insurer. The section recognizes the existence of holding companies. The
					 requirement that the advertisement refer to the policy form number is
					 applicable to individual and franchise policies only.
However, the requirement of the policy form number is not
					 applicable to those advertisements for individual and franchise policies not
					 required to disclose information under Sections
					 2536.2(b)(1) and
					 (7). Subsection (a) and Subsection (b)
					 prohibit misleading practices of insurers in connection with the sale of
					 insurance to supplement Federal Medicare benefits and confusion by insurers
					 with advertising material used by hospital service corporations or pre-paid
					 health plans.
This Section prohibits advertisements, envelopes or
					 stationery which employ words, letters, initials, symbols or other devices
					 which are so similar to those used by governmental agencies or other insurers,
					 including hospital service corporations and pre-paid health plans, that the
					 public may be confused into believing:
(a) that the advertised coverages are somehow
				  provided by or are endorsed by such governmental agencies or such other
				  insurers;
(b) that the advertised
				  coverages are the same as those provided by such governmental agencies or such
				  other insurers;
(c) that the
				  advertiser is the same as, is connected with or is endorsed by such
				  governmental agencies or such other insurers.
It is unacceptable for an advertisement to use the name of
					 a state or a political subdivision thereof in a policy name or description. For
					 example, "XYZ Insurance Company's California Hospital Confinement Policy" is
					 unacceptable.
This Section prohibits an insurer from using envelopes or
					 stationery which have printed thereon any name, service mark, slogan, symbol or
					 using any other device in such a manner that it implies that the insurer or the
					 policy advertised is connected with a governmental agency such as the Social
					 Security Administration or the Veterans Administration.
Policies advertised to supplement Medicare benefits are
					 unacceptable if they incorporate the word "Medicare" in the title of the plan
					 or policy being advertised unless, wherever it appears, said word is qualified
					 by language differentiating it from Medicare. Such phrases as "Medicare
					 Insurance Supplement" or "insurance to supplement Medicare" are acceptable.
					 Such an advertisement, however, shall not use the phrase" ___Medicare
					 Department of the XYZ Insurance Company," or language of similar import.
Advertisements for policies designed to supplement Medicare
					 benefits are unacceptable if they fail to contain a disclaimer to the effect of
					 "Not connected with or endorsed by the U.S. Government or the Federal Medicare
					 program."
This section prohibits an advertisement which implies that
					 the reader may lose a right, privilege or benefit under Federal, state or local
					 law if he fails to respond to the advertisement.
If the use of letters, initials or symbols of the corporate
					 name or trademark would have the capacity or tendency to mislead or deceive the
					 public as to the true identity of the insurer, this Section prohibits the use
					 of such letters, initials, or symbols without disclosing in a close conjunction
					 the true and correct complete name of the insurer which will issue the
					 policy.
This rule prohibits the use of the name of an agency or
					 "___ Underwriters" or "___ Plan" in type, size and location so as to have the
					 capacity and tendency to mislead or deceive as to the true identity of the
					 insurer and also prohibits an insurer from using an address so as to mislead or
					 deceive as to its true identity, location or licensing
					 status.