Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 50 - RULES CONCERNING THE ADVERTISING OF LIFE INSURANCE AND ANNUITIES › Section 210-50-006 - Disclosure requirements

Current through June 17, 2024
006.01 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.
006.02 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 or
				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, or that
				the policy or contract includes a "free look" period that satisfies or exceeds
				regulatory requirements, does not remedy misleading statements.
006.03 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 set forth in the
				application.
006.04 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.
006.05 An advertisement
				shall prominently describe the type of policy advertised.
006.06 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 cost savings
				may be stated or implied without justification satisfactory to the director
				prior to use.
006.07 An
				advertisement for a life 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.
006.08 An advertisement for the types of
				policies described in Sections 006.06 and 006.07 shall not use the words
				"inexpensive," "low cost," or other phrase or words of similar import when the
				policies being marketed are guaranteed issue.
006.09 Premiums;
006.09A an advertisement for a policy with
				non-level premiums shall prominently describe the premium changes,
006.09B 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,
006.09C 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,
006.09D 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 specified premium is paid is deemed to be
				deceptive and misleading and is prohibited,
006.09E 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, and
006.09F 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.