NAIC - Advertising

  • Rules Governing The Advertising Of Life Insurance
    • At the June NAIC meeting in Boston, the Task Force announced  that it was charged with the review of the Rules by the NAIC President Josephine Driscoll (Ore.).
    • The Oregon Division believed that revisions may be necessary to keep pace with the new generation of products.

1987-1, NAIC Proceedings

  • ADVERTISEMENTS OF LIFE INSURANCE AND ANNUITIES MODEL REGULATION - (MDL-570)
  • Rules Governing the Advertising of Life Insurance
  • All advertisements are required to be truthful and not misleading in fact or by implication.
  • The form and content of an advertisement of a policy shall be sufficiently clear so as to avoid deception.
  • The advertisement shall not have the capacity or tendency to mislead or deceive.
  • Whether an advertisement has the capacity or tendency to mislead or deceive shall be determined upon reviewing the overall impression that the advertisement reasonably may be expected to create upon a person of average education or intelligence within the segment of the public to which the advertisement is directed.  (p569)

2004 -  NAIC - Market Conduct Examiners Handbook - 1582p

  • Market Conduct Surveillance (EX3) Task Force
  • 5. Report of Subgroup on Life Advertising Issues
    • Dick Rogers, as chair of the subgroup, called upon Tony Spano (American Council of Life Insurance) to speak to amendments to the NAIC Model Rules Governing the Advertising of Life Insurance.
      • Mr. Rogers noted that amendments to the model had been adopted in December 1987 but that technical amendments were expected.
    • Mr. Spano submitted a written report entitled "Statement on Behalf of the American Council of Life Insurance to the NAIC Market Conduct Surveillance (EX3) Task Force, June 13, 1988" - (Attachment Two-3p).
      • Mr. Spano summarized the report stating that the amendments he proposed (attached to his report) involve a method known as the "range approach" which would govern the use of sales illustrations.
    • Mr. Rogers thanked Mr. Spano for his report and moved that the report be received and that the amendments be submitted for exposure at this time for consideration at the December 1988 national meeting.
    • The task force then heard from William Albus (National Association of Life Underwriters) who commented that if the so-called "range approach" were adopted, it would not necessarily be beneficial.
      • While he asked to reserve further comment as the proposal is further considered, the NALU was opposed to the amendments.
      • However, Mr. Albus noted his support for the current model and support for its continued adoption in the jurisdictions.

1988-2, NAIC Proc.