Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.03.02 - LIFE SETTLEMENTS › Section 18.03.02.012 - FILING OF FORMS

Current through August 31, 2023
01.
Filing of
			 Life Settlement Contracts and Disclosure Forms
. No person may use a life
			 settlement contract or disclosure form in Idaho unless the form is first filed
			 with the Department along with a certification that the form meets the
			 requirements of Sections
			 41-1950 through
			 41-1965, Idaho Code. The
			 certification will be in the form as prescribed by the Director and signed by a
			 person registered as a provider or broker. (3-31-22)
02.
Filing of Advertising
			 Materials
. No person may use advertising materials promoting or
			 advertising the availability of life settlements or life settlement services in
			 Idaho unless the materials are first filed with the Department. If the
			 advertising is not in written form, a written script will be filed. All
			 advertising relating to the business of life settlements will have a unique
			 identifying form number in the lower left-hand corner of the advertising piece
			 and needs to comply the following standards: (3-31-22)
a. Be truthful and not misleading in fact and
			 implication. All information is set out conspicuously and in close conjunction
			 with the statements and will not be minimized, rendered obscure, ambiguous, or
			 intermingled with the context of the advertisement so as to be confusing or
			 misleading. (3-31-22)
b. Reference
			 the complete form number of any life settlement contract being advertised and
			 clearly identify the full and complete name of the provider or broker using the
			 promotional material. Advertising materials cannot use a trade name, any
			 insurance group designation, name of the parent company of the provider or
			 broker, name of a particular division of the provider or broker, service mark,
			 slogan, symbol or other device which would have the capacity and tendency to
			 mislead or deceive as to the true identity of the provider or broker without
			 disclosing the name of the actual provider or broker using the advertising
			 material. (3-31-22)
c. No
			 advertisement will omit information or use words, phrases, statements,
			 references or illustrations if the omission of such information or use of such
			 words, phrases, statements, references or illustrations has the capacity,
			 tendency or effect of misleading or deceiving sellers or prospective sellers as
			 to the nature or extent of any policy benefit payable. The fact that the
			 contract offered is made available to a prospective seller for inspection prior
			 to consummation of the sale or an offer is made to rescind the life settlement
			 contract if the seller is not satisfied, does not remedy misleading statements.
			 (3-31-22)
d. Advertising materials
			 cannot use words or phrases in a manner which exaggerates any benefits beyond
			 the terms of the life settlement contract and fairly and accurately describe
			 the negative features as well as the positive features of the life settlement
			 contract and life settlement program. An advertisement cannot represent or
			 imply that life settlements by the provider are "liberal" or "generous," or use
			 words of similar import, or that benefits of a life settlement are or will be
			 beyond the actual terms of the life settlement contract. (3-31-22)
e. Advertising materials cannot be designed
			 to encourage or promote the purchase of life insurance for the purpose of
			 transferring ownership to third party investors who lack an insurable interest
			 in the in the life of the insured. (3-31-22)
f. An advertisement cannot create the
			 impression directly or indirectly that a provider, a broker, its financial
			 condition or status, a life settlement contract or program, or the payment of
			 life settlement benefits is approved, endorsed, or accredited by any division
			 or agency of this state or the United States Government. (3-31-22)
g. Testimonials used in advertisements needs
			 to be genuine, represent the current opinion of the author, be applicable to
			 the life settlement contract advertised and be accurately reproduced. A
			 provider or broker using a testimonial makes as its own all of the statements
			 contained therein, and the advertisement, including such statement, is subject
			 to all the provisions of these rules. If the person making a testimonial, an
			 endorsement or an appraisal has a financial interest in the provider or broker,
			 or a related entity as a stockholder, director, officer, employee, or
			 otherwise, such fact is disclosed in the advertisement. If a person is
			 compensated for making a testimonial, endorsement or appraisal, such fact will
			 be disclosed in the advertisement by language substantially as follows: "Paid
			 Endorsement." (3-31-22)
h. The
			 source of any statistics used in an advertisement are identified in the
			 advertisement. (3-31-22)