• Mr. DeAngelo responded that the New Jersey Unfair Trade Practices Act on false advertising is only one paragraph long and the department has been criticized for not telling the industry in its regulations what is false and misleading, for example.
  • [Bonk: Find - No other regulators spoke in support of the ACLI suggestion, so it will not be included in the next draft.
• Mr. DeAngelo said there had been a suggestion that Section 2A(1)(c) be revised.
  • He said if materials for agents are misleading or incomplete, then agents may in turn mislead the public.
  • He asked if regulators were interested in deleting the language that says "which is designed to be used or is used to induce the public… ."
• Mr. Hanson said he would like to see all training materials included and Mr. Burch said he was also in favor of deleting the language.
• Mr. DeAngelo said he did not recall seeing incorrect or misleading training materials, so this is somewhat a theoretical question.
• Mr. Hanson responded that he had seen misleading materials in market conduct examinations.
• Diana Marchesi (Transamerica) said this language would then be broad enough to include material designed to inspire agents to sell more for the company.
  • All of the information in the regulation would then need to be included in that inspirational brochure.
• Mr. DeAngelo asked if there is a middle ground, such as requiring the regulation to apply to material that describes to the producer the features, advantages or disadvantages of an insurance product.
  • The regulators agreed that was an appropriate compromise.
• What the regulators really want to say is that the agent training materials should not be misleading or incomplete.
• Mr. Burch said that he has been convinced that the requirement for agent training materials should be deleted and the rest of the regulators agreed.

1999-4, NAIC Proc. - Unfair Trade Practices