California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 12.7 - Life Insurance Advertisements › Section 2547.5 - Disclosure Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  The information required to be disclosed by these regulations 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 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 uses
				  "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 or an annuity.
(e) An advertisement shall prominently
				  describe the type of policy advertised.
(f) An advertisement of an insurance policy
				  marketed by direct response techniques shall not state or imply that because
				  there is no agent or commission involved 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
				  Commissioner 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.
(1) An advertisement shall not utilize or
				  describe dividends in a manner which is misleading or has the capacity or the
				  tendency to mislead.
(2) An
				  advertisement shall not state or imply that the payment or amount of dividends
				  is guaranteed. If dividends are illustrated, they must be based on the
				  insurer's current dividend scale and the illustrations 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 (1) what benefits or coverage
				  would be provided at such time and (2) under what conditions this would
				  occur.