West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-5 - Disclosure Requirements

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1 The
				information required to be disclosed by this rule 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.
5.2. An advertisement may not omit material
				information or use words, phrases, statements, references or illustrations having
				the capacity, tendency or effect of misleading or deceiving 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 (a) the policy is made
				available to a prospective insured for inspection prior to consummation of the sale,
				(b) an offer is made to refund the premium if the purchaser is not satisfied or (c)
				that the policy or contract includes a "free look" period that satisfies or exceeds
				regulatory requirements, does not remedy misleading statements.
5.3. If an advertisement uses the terms
				"non-medical," "no medical examination required," or similar terms where issue is
				not guaranteed, the advertisement shall include a disclosure of equal prominence and
				in juxtaposition thereto that issuance of the policy may depend upon the answers to
				health questions in the application.
5.4. An advertisement may not use as the name or
				title of a life insurance policy any phrase that does not include the words "life
				insurance" unless accompanied by other language clearly indicating the policy is for
				life insurance. An advertisement may 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 the contract is an annuity. An annuity
				advertisement may not refer to an annuity as a "CD annuity," or deceptively compare
				an annuity to a certificate of deposit.
5.5. An advertisement must prominently describe
				the type of policy advertised.
5.6. An
				advertisement of an insurance policy marketed by direct response techniques may not
				falsely state or imply that because there is no insurance producer or commission
				involved there will be a cost savings to prospective purchasers. Justification for
				any statement or implication of cost savings must be submitted and approved by the
				Insurance Commissioner prior to dissemination of the advertisement.
5.7. An advertisement for a life insurance policy
				containing graded or modified benefits must prominently display any limitation of
				benefits. The advertisement must disclose that the premium is level and coverage
				decreases or increases with age or duration. 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 must accurately describe and clearly call attention to the
				amount of minimum death benefit under the policy.
5.8. An advertisement for the types of policies
				described in subsections 5.6 and 5.7 of this section may not use the words
				"inexpensive," "low cost," or other phrase or words of similar import when the
				policies being marketed are guaranteed issue.
5.9. Premiums
a.
				An advertisement for a policy with non-level premiums shall prominently describe the
				premium changes.
b. An advertisement for
				a policy which reserves to the insurer the right to change the amount of the premium
				during the policy term must prominently describe this feature. Failure to do so is
				deemed to be deceptive and misleading and is prohibited.
c. An advertisement may not contain a statement or
				representation that premiums paid for a life insurance policy can be withdrawn under
				the terms of the policy. An advertisement may state that amounts paid into an
				advance premium fund, which are intended to pay premiums at a future time, may be
				withdrawn under the conditions of the prepayment agreement. An advertisement may
				also refer to withdrawal rights under any unconditional premium refund
				offer.
d. An advertisement that
				represents that a pure endowment benefit has a "profit" or "return" on the premium
				paid, rather than a policy benefit for which a specified premium is paid is deemed
				to be deceptive and misleading and is prohibited.
e. An advertisement may not falsely represent or
				imply in any way that premium payments will not be required for each year of the
				policy in order to maintain the illustrated death benefits.
f. An advertisement may 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.