Producers Please be aware that DIFS no longer reviews and approves advertisements before they are used. However, in all lines of insurance regulated by DIFS, the administrative standards that apply to Accident & Sickness, Life Insurance, and Annuities marketing have long been adopted as the standard for authorized advertising. For further information, agents (producers) should read the entire Accident and Sickness Insurance Advertising administrative rules as well as the Advertisement of Life Insurance and Annuities administrative rules.
- The advertisement must be genuine and identify the product being sold properly. R 500.1375, R 500.654, R 500.1375, R 500.654, R 500.654,
- Any statistics in the advertisement must be accompanied by the source of those figures. For example, if the ad says, “Newsweek has rated ABC the strongest long-term care insurer,” this statement must include a reference to the Newsweek article that contains that data and/or made that remark, including the issue and date. R 500.1377, R 500.653, R 500.1377, R 500.1377, R 500.13
- If the ad includes a rating, such as AM Best, the timeframe when the rating was given must also be included. R 500.653, R 500.1383, R 500.1383, R 500.1383, R 500.1383,
- The ad must not give the idea of being endorsed or approved by the state or federal governments. 500.664 R
- The ad cannot provide the appearance or indicate (through envelopes, stationery, postcards, and other means) that the insurer or agent is affiliated with a state or federal government entity such as the Social Security Administration or the Veterans Administration. R 500.1379, R 500.654, R 500.1379, R 500.1379, R 500.13
- The ad must clearly distinguish the plan or policy being offered from Medicare by including the word “Medicare” in the title. 500.664 R
- The terms investment, investment plan, expansion plan, profit, profits, profit sharing, interest plan, savings, savings plan, and other similar terms that may induce a consumer to believe an insurance policy is an investment are prohibited from being used in the advertisement. R 500.1375, R 500.655, R 500.1375, R 500.655, R 500.655,
“All advertising must be truthful and not misleading,” according to the FTC. You should be in compliance with the Insurance Code if you use common sense while advertising, and your customers will appreciate doing business with an honest, trustworthy agent. MCL 500.2026, MCL 500.2027, MCL 500.2057, and MCL 500.2080 are also applicable.
When advertising an insurer is required to use its?
All advertisements pertaining to an insurance or its goods must include the insurer’s name. If a specific product is advertised, the insurer must provide the policy number for life products. This also applies to advertisements for health insurance that are regarded a “invitation to contract.”
What must be disclosed when a producer advertises a life insurance policy?
Advertisements must be truthful and not deceptive, either explicitly or implicitly. To avoid deceit, the form and substance of a policy advertisement will be sufficiently thorough and unambiguous. It will not have the ability or desire to deceive or mislead.
Who is ultimately responsible for the contents of insurance advertising?
Who is in charge of the content of life insurance commercials? The insurer is responsible for all advertisements. The time limit is 180 days. If a producer passes away or becomes incapacitated, a family member or associate can form a partnership with another producer to carry on the business.
Can insurance company advertise?
“Prohibited advertising of insurance sales; necessary notification” 21.79.160 (a)A person, including a member insurer, an agent, or an affiliate of a member insurer, may not make, publish, disseminate, circulate, or place before the public, or cause to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an The association, or any other entity that does not sell or solicit insurance, hospital or medical service company coverage, or health maintenance organization coverage, is exempt from this section. (As of 07/01/18, it has been updated.)
When must an insurer provide a policy summary?
The policy summary must be supplied before or on the delivery date of the policy. Upon request, either document must be supplied to the client.
Which of the following may not be included in an insurance company advertisement?
(1) material meant purely for the training and education of an insurer’s employees, agents, or brokers; (2) material utilized in-house by insurers; (3) communications within an insurer’s own organization that are not intended for public dissemination; (4) individual communications
Can life insurance agents advertise?
There are additional rules governing how insurance agents promote themselves and the corporations whose products they sell. Insurers are required to exercise strict supervision over advertisements bearing their name, including those placed by their agents. Regardless of the type of insurance involved, most require agents to obtain formal clearance from the insurer before using any ads or fliers. For example, if a life insurance broker is hosting a seminar on “Women and Wealth” to discuss annuities, life insurance, and retirement planning, the insurance company must approve the flier promoting the event.
In some states, even the information on an agent’s business card is regulated. In California, for example, an insurance agent’s license number must be printed in the same size as his address or phone number on his business card.
How many years must insurance advertisements be retained?
All advertising must be kept in the file for a period of five (5) years after they are no longer used or published.
When must an insurance producer provide a description of their role in the sale of a new policy to the purchaser?
Insurance Regulation 194 does not apply to renewals in general, except that if the purchaser requests more information about the producer’s compensation less than 30 days prior to a renewal or less than 30 days after a renewal, the producer must provide the additional disclosure information required by section 30.3(b) to the purchaser in a prominent writing within five business days.