Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 41 - RULES GOVERNING ADVERTISEMENT OF LIFE INSURANCE AND ANNUITIES › Section 14VAC5-41-110 - Introductory, initial, or special offers

Current through Register Vol. 40, No. 24, July 15, 2024
A. An advertisement of one policy or
				combination of policies shall not state or imply that the policy or combination
				of policies is an introductory, initial, or special offer, or that applicants
				will receive substantial advantages not available at a later date, or that the
				offer is available only to a specified group of individuals, unless that is the
				fact. An advertisement shall not describe an enrollment period as "special" or
				"limited" or use similar words or phrases in describing it when the insurer
				uses successive enrollment periods as its usual method of marketing its
				policies.
B. An advertisement shall
				not state or imply that only a specific number of policies will be sold, or
				that a time is fixed for the discontinuance of the sale of a particular policy
				because of special advantages available in the policy.
C. An advertisement shall not offer a policy
				that utilizes a reduced initial premium rate in a manner that overemphasizes
				the availability and the amount of the reduced initial premium. When an insurer
				charges an initial premium that differs in amount from the amount of the
				renewal premium payable on the same mode, all references to the reduced initial
				premium shall be followed by an asterisk or other appropriate symbol that
				refers the reader to that specific portion of the advertisement that contains
				the full rate schedule for the policy.
D. An enrollment period during which a
				particular policy may be purchased on an individual basis shall not be offered
				within this Commonwealth unless there has been a lapse of not less than six
				months between the close of the immediately preceding enrollment period for the
				same or substantially similar policy and the opening of a new enrollment
				period. The advertisement shall specify the date by which the applicant must
				mail the application, that shall be not less than 10 days and not more than 40
				days from the date on which the enrollment period is presented for the first
				time in the advertisement. This section applies to all the affiliated companies
				of a group of insurance companies under common management or control. This
				section does not apply to the use of a termination or cutoff date beyond which
				an individual application for a guaranteed issue policy will not be accepted by
				an insurer in those instances where the application has been sent to the
				applicant in response to his request. It is also inapplicable to solicitations
				of employees or members of a particular group or association that otherwise
				would be eligible under specific provisions of the Code of Virginia for group,
				blanket, or franchise insurance. In cases where a policy is marketed on a
				direct response basis to prospective insureds by reason of some common
				relationship with a sponsoring organization, this section shall be applied
				separately to each sponsoring organization.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of
					 Virginia.