North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-06 - Accident and Health Insurance › Chapter 45-06-04 - Advertising Rules › Section 45-06-04-05 - Deceptive words, phrases, or illustrations prohibited

Current through Supplement No. 393, July, 2024
1. No advertisement may omit information or
				use words, phrases, statements, references, or illustrations if the omission of
				such information or use of such words, phrases, statements, references, or
				illustrations 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, or premium payable. The fact that the policy
				offered is made available to a prospective insured for inspection prior to
				consummation of the sale of an offer is made to refund the premium if the
				purchaser is not satisfied, does not remedy misleading statements.
2. No advertisement may contain or use words
				or phrases such as, "all"; "full"; "complete"; "comprehensive"; "unlimited";
				"up to"; "as high as"; "this policy will help pay your hospital and surgical
				bills"; "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 which exaggerates any benefits beyond the terms of the policy.
3. An advertisement may not
				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 must fairly and
				accurately describe the negative features of such limitations, exceptions, and
				reductions of the policy offered.
4. No advertisement of a benefit for which
				payment is conditional upon confinement in a hospital or similar facility may
				use words or phrases such as "extra cash"; "extra income"; "extra pay"; or
				substantially similar words or phrases because such words and phrases have the
				capacity, tendency, or effect of misleading the public into believing that the
				policy advertised will, in some way, enable them to make a profit from being
				hospitalized.
5. No advertisement
				of a hospital or other similar facility confinement benefit may advertise that
				the amount of the benefit is payable on a monthly or weekly basis when, in
				fact, the amount of the benefit payable is based upon a daily pro rata basis
				relating to the number of days of confinement. When the policy contains a limit
				on the number of days of coverage provided, such limit must appear in the
				advertisement.
6. No advertisement
				of a policy covering only one disease or a list of specified diseases may imply
				coverage beyond the terms of the policy. Synonymous terms may not be used to
				refer to any disease so as to imply broader coverage than is the
				fact.
7. An advertisement for a
				policy providing benefits for specified illnesses only, such as cancer, or for
				specified accidents only, such as automobile accidents, must clearly and
				conspicuously in prominent type state the limited nature of the policy. The
				statement must be worded in language identical to, or substantially similar to
				the following: "THIS IS AN AUTOMOBILE ACCIDENT ONLY POLICY".
8. An advertisement of a direct response
				insurance product may not imply that because "no insurance agent will call and
				no commissions will be paid to agents" that it is "a low cost plan", or use
				other similar words or phrases because the cost of advertising and servicing
				such policies is a substantial cost in the marketing of a direct response
				insurance product.
9. The phrase
				"tax free" may not be used in or as a heading, caption, or title in any
				advertisement and may not be unduly or deceptively emphasized, but it may be
				used in connection with a reasonably complete explanation of the internal
				revenue service rules applicable to the particular benefits afforded by the
				policy or policies advertised.
General Authority: NDCC 26.1-04-08, 28-32-02
Law Implemented: NDCC 26.1-04-03(1), 26.1-04-03(2),
					 26.1-04-07