Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 41 - Regulation 60-Advertising of Life Insurance › Section XIII-4109 - Disclosure Requirements

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				information required to be disclosed by these rules 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 items 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 set forth in the
				application.
D. An advertisement
				shall not use as the name or title of a life insurance policy any phrase which
				does not include the words
life insurance
unless accompanied
				by other language clearly indicating it is life insurance. An advertisement
				shall not use as the name or title of an annuity contract any phrase that does
				not include the word
annuity
unless accompanied by other
				language clearly indicating it is an annuity. An annuity advertisement shall
				not refer to an annuity as a CD annuity, or deceptively compare an annuity to a
				certificate of deposit.
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 insurance producer or commission involved there
				will be a cost saving to prospective purchasers unless such is the fact. No
				such cost savings may be stated or implied without justification satisfactory
				to the Department of Insurance prior to use.
G. An advertisement for a life insurance
				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. An
				advertisement of or for a life insurance policy under which the death benefit
				varies with the length of time the policy has been in force shall accurately
				describe and clearly call attention to the amount of minimum death benefit
				under the policy.
H. An
				advertisement for the types of policies described in §4109. F and G shall not
				use the words
inexpensive
,
low cost
, or other
				phrase or words of similar import when such policies are being marketed to
				persons who are 50 years of age or older, where the policy is guaranteed
				issue.
I. Premiums
1. An advertisement for a policy with
				nonlevel premiums shall prominently describe the premium changes.
2. An advertisement in which the insurer
				describes a policy where it reserves the right to change the amount of the
				premium during the policy term, but which does not prominently describe this
				feature, is deemed to be deceptive and misleading and is prohibited.
3. An advertisement shall not contain a
				statement or representation that premiums paid for a life insurance policy can
				be withdrawn under the terms of the policy. Reference may be made to amounts
				paid into an advance premium fund, which are intended to pay premiums at a
				future time, to the effect that they may be withdrawn under the conditions of
				the prepayment agreement. Reference may also be made to withdrawal rights under
				any unconditional premium refund offer.
4. An advertisement which represents a pure
				endowment benefit as a profit or return on the premium paid rather than as a
				policy benefit for which a specific premium is paid is deemed to be deceptive
				and misleading and is prohibited.
5. An advertisement shall not represent in
				any way that premium payments will not be required for each year of the policy
				in order to maintain the illustrated death benefits, unless that is the
				fact.
6. An advertisement shall not
				use the term "vanish" or "vanishing premium," or a similar term that implies
				the policy becomes paid up, to describe a plan using nonguaranteed elements to
				pay a portion of future premiums.