Iowa Administrative Code › Agency 191 - Insurance Division › Unfair Trade Practices › Chapter 15 - Unfair Trade Practices › Rule 191-15.3 - Advertising

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Form
				and content of advertisements.
The format and content of an
				advertisement shall be truthful and sufficiently complete and clear to avoid
				deception or the capacity or tendency to misrepresent or deceive. Whether an
				advertisement has a capacity or tendency to misrepresent or deceive shall be
				determined by the overall impression that the advertisement may be reasonably
				expected to create upon an individual in the segment of the public to which it
				is primarily directed and who has average education, intelligence and
				familiarity with insurance terminology for products in that market.
Information regarding exceptions, limitations, reductions and
				  other restrictions required to be disclosed by this rule shall not be
				  minimized, rendered obscure or presented in an ambiguous fashion or
				  intermingled with the context of the advertisements so as to be confusing or
				  misleading.
(2)
Prohibited terms and disclosure requirements for health
				insurance.
a. No advertisement shall
				contain or use words or phrases such as "all"; "full"; "complete";
				"comprehensive"; "unlimited"; "up to"; "as high as"; "this policy will help
				fill some of the gaps that Medicare and your present insurance leave out";
				"this policy will help to replace your income" (when used to express loss of
				time benefits); or similar words and phrases in a manner that exaggerates any
				benefits beyond the terms of the policy.
b. No advertisement shall contain
				descriptions of a policy limitation, exception, or reduction, worded in a
				positive manner to imply that it is a benefit, such as describing a waiting
				period as a "benefit builder" or stating "even preexisting conditions are
				covered after two years." Words and phrases used in an advertisement to
				describe such policy limitations, exceptions and reductions shall fairly and
				accurately describe the negative features of such limitations, exceptions and
				reductions of the policy offered.
c. No advertisement of a benefit for which
				payment is conditional upon confinement in a hospital or similar facility shall
				use words or phrases such as "tax free," "extra cash" and substantially similar
				phrases that have the capacity, tendency or effect of misleading the public
				into believing that the policy advertised will, in some way, enable an
				individual to make a profit from being hospitalized.
d. No advertisement shall use the words
				"only"; "just"; "merely"; "minimum" or similar words or phrases to describe the
				applicability of any exceptions and reductions, such as: "This policy is
				subject to the following minimum exceptions and reductions."
e. An advertisement that refers to either a
				dollar amount, or a period of time for which any benefit is payable, or the
				cost of the policy, or specific policy benefit, or the loss for which such
				benefit is payable, shall also disclose those exceptions, reductions, and
				limitations affecting the basic provisions of the policy without which the
				advertisement would have the capacity or tendency to mislead or
				deceive.
f. An advertisement may
				contain a brief description of coverage in an invitation to inquire so long as
				it is limited to a brief description of the loss for which benefits are
				payable. The brief description may not refer to the cost of the
				policy.
g. An advertisement for a
				policy that contains a waiting, elimination, probationary, or similar time
				period between the effective date of the policy and the effective date of
				coverage under the policy or a time period between the date a loss occurs and
				the date benefits begin to accrue for such loss shall prominently disclose the
				existence of such periods.
h. An
				invitation to inquire shall contain a provision in the following or
				substantially similar form: "This policy has [exclusions] [limitations]
				[reduction of benefits] [terms under which the policy may be continued in force
				or discontinued]. For costs and complete details of the coverage, call [or
				write] your insurance agent or the company [whichever is
				applicable]."