Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1377 - Disclosure requirements

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) 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.
(2) An advertisement shall not omit material
				information or use words, phrases, statements, references, or illustrations if
				such omission or such use is misleading or deceptive to 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.
(3) If an advertisement
				uses terms or phrases such as "Non-Medical" or "No Physical Examination
				Required" or uses similar terms or phrases and if issue is not guaranteed, such
				terms or phrases shall be accompanied by a further disclosure of equal
				prominence and nearby to the effect that issuance of the policy will depend
				upon answers to health questions contained in the application, if such is the
				fact.
(4) 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.
(5) An advertisement shall prominently
				describe the type of policy advertised.
(6) An advertisement of an insurance policy
				marketed by direct response technique shall not state or imply that because
				there is no agent or commission involved there will be cost savings to
				prospective purchasers, unless such is the fact.
(7) 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 coverage changes shall be prominently disclosed.
(8) An advertisement for a policy with
				non-level premiums shall prominently describe the premium changes.
(9) All of the following provisions apply
				with respect to dividends:
(a) An
				advertisement shall not utilize or describe dividends in a manner which is
				misleading.
(b) An advertisement
				shall not state or imply that the payment or amount of dividends is guaranteed.
				If dividends are illustrated, they shall be based on the insurer's current
				dividend scale, and the illustration shall contain a statement to the effect
				that they are not be construed as guarantees or estimates of dividends to be
				paid in the future.
(c) An
				advertisement shall not state or imply that illustrated dividends under a
				participating policy or pure endowments, or both, 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 what benefits or coverage would be provided at such time
				and under what conditions this would occur.
(d) If level benefit insurance is contingent
				upon dividends providing term insurance or paid-up insurance, or both, any
				advertisement or illustration shall disclose that insufficient or not dividends
				will either cause a reduction or elimination of supplemental coverage or that
				additional premium will be required to keep the original death benefit amount
				in force.