North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-10 - Advertising Rules › Section 45-04-10-03 - Disclosure requirements

Current through Supplement No. 393, July, 2024
1. The
				information required to be disclosed by this chapter may 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. No advertisement may 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. Whether an advertisement has the capacity or
				tendency to mislead or deceive must be determined by the insurance commissioner
				from the overall impression that the advertisement may be reasonably expected
				to create upon a person of average education or intelligence, within the
				segment of the public to which it is directed.
3. In the event an advertisement uses
				"Non-Medical", "No Medical Examination Required", or similar terms where issue
				is not guaranteed, such terms must 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.
4. An advertisement may 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
				must prominently describe the type of policy advertised.
6. An advertisement of an insurance policy
				marketed by direct response techniques may 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.
7. An
				advertisement for a policy containing graded or modified benefits must
				prominently display any limitation of benefits. If the premium is level and
				coverage decreases or increases with age or duration, such fact must be
				prominently disclosed.
8. An
				advertisement for a policy with nonlevel premiums must prominently describe the
				premium changes.
9. Dividends.
a. An advertisement may not utilize or
				describe dividends in a manner which is misleading or has the capacity or
				tendency to mislead.
b. An
				advertisement may 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 illustration 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.
c. An advertisement may 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 (1) what benefits or
				coverage would be provided at such time and (2) under what conditions this
				would occur.