Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 90 - RULES GOVERNING ADVERTISEMENT OF ACCIDENT AND SICKNESS INSURANCE › Section 14VAC5-90-60 - Requirements applicable to advertisements of covered benefits; disclosures relating to exceptions, reductions, limitations; and pre-existing conditions

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Advertisements of covered benefits shall comply with the following standards.
1. An advertisement shall not omit
				information or use words, phrases, statements, references or illustrations if
				the omission of the information or use of the 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 or an offer is made to refund the premium if the
				purchaser is not satisfied, does not remedy misleading statements.
2. An advertisement shall not contain or use
				words or phrases such as "all," "full," "complete," "comprehensive,"
				"unlimited," "up to," "as high as," "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 that exaggerates a benefit beyond the
				terms of the policy, but may be used only in such manner as to fairly describe
				the benefit.
3. An advertisement of
				a benefit for which payment is conditioned upon confinement in a hospital or
				similar facility shall not use words or phrases such as "tax free," "extra
				cash," "extra income," "extra pay," or substantially similar words or phrases
				because these 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.
4. An advertisement of a hospital or other
				similar facility confinement benefit shall not 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, the limit shall appear in the advertisement.
5. An advertisement of a policy covering only
				one disease or a list of specified diseases shall not imply coverage beyond the
				terms of the policy. Synonymous terms shall not be used to refer to any disease
				to imply broader coverage than is the fact.
6. An advertisement of a direct response
				insurance product shall not state or 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 the policies is a substantial cost in the marketing by direct
				response.