DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

                             INSURANCE BUREAU

                ACCIDENT AND SICKNESS INSURANCE ADVERTISING


(By authority conferred on the commissioner of insurance  by   sections   210 
and 2007 of Act No. 218 of the Public Acts of 1956,   being   SS500.210   and 
500.2007 of the Michigan Compiled Laws)


R  500.651   Definitions.
  Rule 1. As used in these rules:
  (a) "Accident and sickness  insurance"  means   disability   insurance   as 
defined in section 606 of the code, coverage comparable to  that  defined  in 
section 606 of the code offered by multiple  employer  welfare  arrangements, 
and credit accident and health insurance as defined in section   3   of   Act 
No. 173 of the Public Acts of 1958, as  amended,  being   S550.603   of   the 
Michigan Compiled Laws.
  (b) "Advertisement" means all of the following:
  (i)  Printed  and  published   material,    audiovisual    material,    and 
descriptive literature used by or on behalf of an insurer in   any   of   the 
following:
  (A) Direct mail.
  (B) Newspapers.
  (C) Magazines.
  (D) Radio scripts.
  (E) Television scripts.
  (F) Billboards.
  (G) Other similar displays.
  (ii) Descriptive literature and sales aids of all kinds issued  or  used by 
an insurer, agent, or other person  for  presentation  to  members   of   the 
public, including any of the following:
  (A) Circulars.
  (B) Leaflets.
  (C) Booklets.
  (D) Depictions.
  (E) Illustrations.
  (F) Form letters.
  (G) Lead-generating devices of all kinds.
  (iii) Prepared sales talks,  presentations,  and  material   for   use   by 
agents or other persons, whether prepared for or by the  insurer,  agent,  or 
other person.
  (iv) Advertising material included with a  policy  when   the   policy   is 
delivered.
  (v)  Advertising  material  used  in  the   solicitation    of    renewals, 
reinstatements, and alterations.
  (c) "Bureau" means the insurance bureau of the  department   of   licensing 
and regulation.
  (d) "Code" means Act No. 218 of the Public Acts  of   1956,   as   amended, 
being S500.101 et seq. of the Michigan Compiled Laws.
  (e) "Exception" means a provision in a policy  whereby   coverage   for   a 
specified hazard is entirely eliminated; it is a statement of  a   risk   not 
assumed under the policy.
  (f) "Institutional advertisement" means an advertisement that  has  as  its 
sole or primary purpose  the  promotion  of  the   reader's,   viewer's,   or 
listener's interest in the concept of accident and  sickness   insurance   or 
the promotion of the insurer.
  (g) "Insurer" means an entity  that  is  defined  as  an   insurer   or   a 
multiple employer welfare arrangement in the code.
  (h) "Invitation to contract" means an advertisement which  is  neither   an 
invitation to inquire nor an institutional advertisement.
  (i) "Invitation to inquire" means an advertisement which is  limited  to  a 
brief description of coverage, which has as its objective the creation  of  a 
desire to inquire further about  accident   and   sickness   insurance,   and 
which shall contain a provision in the following  or  substantially   similar 
form: "This policy has exclusions, reduction of benefits   or   terms   under 
which the policy may be continued in force or discontinued.  For  costs   and 
complete details of the coverage, call or write your   insurance   agent   or 
the insurance company."
  (j) "Lead-generating device" means any  communication   directed   to   the 
public which, regardless of form, content, or stated purpose, is  intended to 
result in the compilation or qualification of a list  containing   names  and 
other personal information to be used to  solicit  residents  of  this  state 
for the purchase of accident and sickness insurance.
  (k) "Limitation" means a provision  which  restricts   coverage   under   a 
policy, other than an exception or a reduction.
  (l) "Person" means any of the following entities:
  (i) A natural person.
  (ii) An association.
  (iii) An organization.
  (iv) A partnership.
  (v) A trust.
  (vi) A group.
  (vii) A discretionary group.
  (viii) A corporation.
  (ix) Any other entity.
  (m) "Policy" means a policy,  plan,   certificate,   contract,   agreement, 
statement of coverage, rider, or endorsement which   provides   accident   or 
sickness benefits or medical,  surgical,  or   hospital   expense   benefits, 
whether on an indemnity, reimbursement, service, or  prepaid  basis,   except 
when issued in connection with another kind of insurance  other   than   life 
and except  for  disability,  waiver  of  premium,   and   double   indemnity 
benefits included in life and annuity contracts.
  (n) "Reduction" means a  provision  which  reduces  the   amount   of   the 
benefit; a risk of loss is assumed, but payments upon   the   occurrence   of 
the loss are limited to some amount or period less than  would  be  otherwise 
payable had the reduction not been used.

  History: 1979 AC; 1991 AACS.


R  500.652   Purpose and applicability.
  Rule 2. (1) These rules shall  be  construed  to   provide   insureds   and 
prospective purchasers  with  clear  and  unambiguous   statements   in   the 
advertisement of accident and sickness insurance and to  assure   the   clear 
and truthful disclosure of the benefits, limitations,   and   exclusions   of 
policies sold as accident and sickness insurance.
  (2) Unless otherwise specified, these rules apply to   any   accident   and 
sickness insurance advertisement which the  insurer   knows   or   reasonably 
should know is intended for presentation, distribution,  or  dissemination in 
this state, either directly  or  indirectly   by   or   on   behalf   of   an 
insurer, agent, or other person as defined in the code and these rules.
  (3) Every advertisement covered by these rules shall be  presumed  to  have 
been  caused,  directly  or  indirectly,   to    be    created,    published, 
disseminated, circulated, or placed before the public by  the  insurer  whose 
policy or policies are the subject of  the   advertisement.   Every   insurer 
shall establish, and at all times maintain, a system of  control   over   the 
content, form, and method of dissemination of  all  of   its   accident   and 
sickness insurance advertisements. All such advertisements, regardless  of by 
 whom  written,  created,   designed,   or   presented,    shall    be    the 
responsibility  of  the  insurer  or  insurers  whose   policies    are    so 
advertised.

  History: 1979 AC; 1991 AACS.



R  500.653   Method of disclosure of required information.
  Rule 3. Information required to be disclosed by these rules  shall  be  set 
out conspicuously and in close conjunction with the   statements   to   which 
the information relates or under appropriate captions  of   such   prominence 
that it  shall  not  be  minimized,  rendered  obscure,   presented   in   an 
ambiguous fashion, or intermingled with the context of  the  advertisement so 
as to be confusing or misleading.

  History: 1979 AC.


R  500.654   Form and content of advertisements.
  Rule 4. (1) The format and content of an advertisement of  an  accident  or 
sickness insurance policy shall be  sufficiently  complete   and   clear   to 
avoid deception or the capacity or tendency to mislead or deceive. Whether an 
advertisement has a capacity or tendency  to  mislead  or  deceive  shall  be 
determined by the  commissioner  from  the  overall   impression   that   the 
advertisement may be reasonably  expected  to  create  upon   a   person   of 
average education or intelligence within the  segment  of   the   public   to 
which the advertisement is directed.
  (2) An advertisement shall be truthful and not misleading in  fact  or   in 
implication. Words or phrases, the meaning  of  which  is   clear   only   by 
implication or by familiarity with insurance  terminology,   shall   not   be 
used.
  (3)  An  insurer  shall  clearly  identify  its   accident   and   sickness 
insurance as an insurance policy. A policy trade name shall  be  followed  by 
the words "insurance policy" or similar words which  clearly   identify   the 
fact that an insurance policy is being offered.
  (4) An insurer, agent, or other person shall not solicit  a   resident   of 
this state  for  the  purchase  of  accident  and   sickness   insurance   in 
connection with, or as the result of, the use of any  advertisement  by  such 
person or any other person where the  advertisement  does   either   of   the 
following:
  (a) Contains any misleading representations or  misrepresentations  or   is 
otherwise untrue, deceptive, or misleading with regard  to  the   information 
imparted, the  status,  character,  or  representative   capacity   of   such 
person, or the true purpose of the advertisement.
  (b) Otherwise violates the provisions of these rules.
  (5) An insurer, agent, or other person shall not   solicit   residents   of 
this state for the purchase of accident and sickness  insurance  through  the 
use of a true or fictitious name which is  deceptive   or   misleading   with 
regard to the status, character, or proprietary or representative capacity of 
such person or the true purpose of the advertisement.
  (6) An insurer, agent, or other person shall not  use   a   lead-generating 
device or list of prospective  insureds  compiled   therefrom   unless   such 
lead-generating device contains the  following   or   substantially   similar 
language in the same size of type as the rest of the   information   and   is 
not hidden or placed in a position to render it obscure:
"This request for information is insurance related and if  you  respond   you 
may be contacted in an attempt to sell you insurance."
  (7) An insurer, agent, or other person shall not  use   a   lead-generating 
device or list of prospective insureds compiled therefrom  if  the   insurer, 
agent, or other person knew or  reasonably  should  have   known   that   the 
lead-generating device or list of prospective members was   obtained   in   a 
manner which violates any provision of  the  Michigan   insurance   code   or 
otherwise violates the provisions of these rules. A   list   of   prospective 
insureds shall not be purchased unless the  purchaser   requests   from   the 
seller any lead-generating device that was used to compile   the   list   and 
obtains a specimen copy of any such device that is disclosed.  An  agent   or 
insurer may use a list obtained through lead-generating  devices  before  the 
effective date of these rules for up to 6 months after the effective  date if 
the lead-generating devices used to compile the lists are  retained  on  file 
by the agent or insurer for inspection by the insurance bureau.
  (8)  The  contents  of  all   advertisements,   including   lead-generating 
devices, regardless of by whom prepared, created,  designed,  or   presented, 
shall  be  the  responsibility  of  any  insurer   benefiting   directly   or 
indirectly from their use.

  History: 1979 AC; 1991 AACS.



R  500.655   Deceptive words, phrases, or illustrations prohibited.
  Rule 5. (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 
a policy benefit payable, loss covered, or premium  payable.  The  fact  that 
the policy offered  is  made  available  to   a   prospective   insured   for 
inspection before consummation of the sale or that 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," "comprehensive," "complete," "unlimited," "up  to,"  "as  high 
as," "this policy will help fill some of the gaps that  medicare   and   your 
present insurance leave out," or "the policy will  help   to   replace   your 
income" or any similar words and phrases in a manner  which  exaggerates  any 
benefits beyond the terms of the policy.
  (3) An advertisement for a medicare supplement policy shall not  contain or 
use words or phrases such  as   "this   policy   pays   all   that   medicare 
doesn't" or any similar words and phrases in a   manner   which   exaggerates 
any benefit beyond the terms of the policy.
  (4) An advertisement  shall  not  contain  a  description   of   a   policy 
limitation, exception, or reduction that is worded in a  positive  manner  to 
imply that it is a benefit, such as  describing  a  waiting   period   as   a 
"benefit builder" or stating  "even  preexisting   conditions   are   covered 
after 2 years." Words and phrases used in  an   advertisement   to   describe 
these policy limitations, exceptions,  and  reductions   shall   fairly   and 
accurately describe the negative features of  the  limitations,   exceptions, 
and reductions of the policy offered.
  (5) An advertisement of a benefit for which payment  is  conditional   upon 
confinement in a hospital or similar facility shall not  use  language  which 
has the tendency or capacity to lead a potential insured  to   believe   that 
the policy's purpose is to enable him or her to make  a   net   profit   from 
being hospitalized or confined. The advertisement shall not  use   words   or 
phrases such as "tax free," "extra cash," "extra income," or  "extra  pay" or 
similar words or phrases.
  (6) 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, unless the daily amount is emphasized and precedes the weekly or 
monthly benefit amounts. When the policy contains a limit on  the  number  of 
days of coverage provided, the limit shall appear in the advertisement.
  (7) An advertisement for  a  policy  providing   benefits   for   specified 
illnesses only, such as cancer, or for specified accidents  only,   such   as 
automobile accidents, shall clearly, and in type which is not  less  than   2 
points larger than the type in the body of the   advertisement,   state   the 
limited nature of the policy. The statement shall be   worded   in   language 
identical to, or substantially similar  to,  the  following:   "this   is   a 
limited policy," "this is a cancer only policy," or "this  is  an  automobile 
accident only policy."
  (8) An advertisement shall not contain a claim stating  or  implying   that 
acquisition and servicing costs for the plan  advertised   are   lower   than 
equivalent costs for other  generally  used  means   of   marketing   similar 
insurance, unless that is the fact. An example of a misleading phrase  is:
"We deal directly with you so our costs are lower,"  when   the   acquisition 
and servicing costs for the advertised plan are actually   not   lower   than 
equivalent costs for other similar plans.
  (9) An advertisement which also is an invitation to  join  an  association, 
trust, or discretionary  group  shall  solicit  insurance   coverage   on   a 
separate and  distinct  application.  Each  of   these   applications   shall 
require separate signatures, but need not be in  a   separate   document   or 
contained in a separate mailing. The insurance program shall be  presented so 
as not to mislead or deceive  the   prospective   members   that   they   are 
purchasing insurance as well as applying for membership, if   that   is   the 
case.
  (10) Notwithstanding the provisions of subrule  (8)  of   this   rule,   an 
advertisement of accident and sickness insurance sold  by   direct   response 
shall not state or imply that because no insurance agent will  call  and   no 
commissions will be paid to agents, it is a low-cost  plan   or   use   other 
similar words or phrases.

  History: 1979 AC; 1991 AACS.



R  500.655a   Specified disease policies.
  Rule 5a. In  addition  to  the  other  provisions  of   these   rules,   an 
advertisement for a policy that  covers  only  1  disease  or   a   list   of 
specified diseases shall be in  compliance  with  both   of   the   following 
provisions:
  (a) An advertisement shall not imply coverage beyond the   terms   of   the 
policy. Synonymous terms shall not be used to refer to any single  disease so 
as to imply broader coverage than is the fact.
  (b)  An  advertisement  shall  not  be  used  if  the   purpose   of    the 
advertisement appears to be  to  induce  or  create   fear   in   prospective 
policyholders. An advertisement shall not use  statistics,  words,   phrases, 
symbols, insignias or characteristics which are calculated  to  arouse  fear, 
alarm, anxiety, dread, shock, fright, or panic.

  History:  1991 AACS. 


R  500.656   Exceptions, reductions, and limitations.
  Rule 6. (1) When an advertisement which is  an   invitation   to   contract 
refers to a dollar amount, a  period  of  time  for  which   a   benefit   is 
payable, the cost of the policy, a specific policy benefit,   or   the   loss 
for which the benefit is payable, the advertisement   shall   also   disclose 
those  exceptions,  reductions,  and  limitations   affecting    the    basic 
provisions of the policy without which the advertisement   would   have   the 
capacity or tendency to mislead or deceive.
  (2) When a policy contains  a  waiting,   elimination,   probationary,   or 
similar time period between the effective  date  of  the   policy   and   the 
effective date of coverage under the policy at a time  period   between   the 
date a loss occurs and the date benefits begin to accrue for  the  loss,   an 
advertisement which is subject to the requirements of subrule  (1)  of   this 
rule shall disclose the existence of the period.
  (3) The use of words or phrases  in  a  context   which   understates   the 
extent  of  the  policy's  exceptions,  reductions,   or    limitations    is 
considered misleading. An advertisement shall not  use   the   word   "only," 
"just," "merely," "minimum," or "necessary" or similar words  or  phrases  to 
describe the applicability of any exceptions and reductions.

  History: 1979 AC; 1991 AACS.



R  500.657   Preexisting conditions.
  Rule 7. (1) An advertisement which is an invitation   to   contract   shall 
disclose, in negative terms, the extent to which a loss is  not  covered   if 
the cause of the loss is traceable to a condition that  existed  before   the 
effective date of the policy. The term "preexisting  condition,"  without  an 
appropriate definition or description, shall not be used.
  (2) When a policy does not cover losses  resulting   from   a   preexisting 
condition, an advertisement of the policy shall not state   or   imply   that 
the applicant's physical condition or medical history will  not  affect   the 
issuance of the policy or payment  of  a  claim   thereunder.   Within   this 
context, the advertisement  shall  not  contain  the   phrase   "no   medical 
examination required" or phrases of similar import.  This   rule   does   not 
prohibit explaining the phrase "automatic issue." If an  insurer  requires  a 
medical examination for a specified policy, the advertisement, if  it  is  an 
invitation to contract, shall  disclose  that  a   medical   examination   is 
required.
  (3) When an advertisement contains an application form to  be  completed by 
the applicant and returned by mail, the application  form  shall   contain  a 
question or statement appearing in upper  case  type  or  contrasting   color 
which  reflects  the  preexisting  condition  provisions   of   the    policy 
immediately preceding the blank space for the   applicant's   signature.   An 
application form shall be in  compliance  with  either   of   the   following 
provisions:
  (a) Contain a question or statement substantially as follows:
  Do you understand that this policy  will  not   pay   __________   benefits 
during the first __________ month(s) after __________ the issued date  for  a 
disease or physical condition YES which you now have or have had in  the past.
  (b) Contain a statement substantially as follows:
  I understand that the policy applied for will not pay  benefits   for   any 
loss incurred during the first            month(s) after the  issue  date  on 
account of disease or physical condition which I now have or  have   had   in 
the past.

  History: 1979 AC; 1991 AACS.



R  500.658   Disclosure of renewability,  cancellability,  termination,   and 
modification.
  Rule 8. An advertisement  which  is  an  invitation   to   contract   shall 
disclose  the  provisions  relating    to    renewability,    cancellability, 
termination, and a modification of benefits, losses  covered,   or   premiums 
because of age or for other reasons in a manner which shall  not  minimize or 
render the qualifying conditions obscure.

  History: 1979 AC; 1991 AACS.



R  500.659   Rescinded.

  History: 1979 AC; 1991 AACS; 1997 AACS.


R  500.660   Use of statistics.
  Rule 10. (1) An advertisement relating to the dollar  amounts   of   claims 
paid, the number of persons insured, or   similar   statistical   information 
relating to an insurer or policy shall not be used   unless   it   accurately 
reflects  all  material  facts  necessary  to   fairly   apprise    potential 
purchasers of the significance of the statistics.  An   advertisement   shall 
not imply that statistics are derived from the   policy   advertised   unless 
true and, when applicable to other policies or plans,  shall  specifically so 
state.
  (2) An  advertisement  shall  specifically  identify   the   sickness   and 
accident insurance policy to which statistics relate  and,  where  statistics 
are given which are applicable to a different policy, it  shall   be   stated 
clearly that the data do not relate to the policy being advertised.
  (3) An advertisement that uses statistics which describe  aspects   of   an 
insurer, such as assets, corporate  structure,   financial   standing,   age, 
product lines, or relative position in the insurance business,  shall  not be 
used unless relevant to the product being advertised.
  (4)  An  advertisement  shall  not  represent  or  imply   that   a   claim 
settlement by the insurer is "liberal"  or  "generous"  or   use   words   of 
similar import, or that a claim settlement is or will be  beyond  the  actual 
terms of the contract. An unusual amount paid for a unique  claim   for   the 
policy advertised is misleading and shall not be used.
  (5)  The  source  of  statistics  used  in  an   advertisement   shall   be 
identified in the advertisement.

  History: 1979 AC; 1991 AACS.



R  500.661   Identification of plan or number of policies.
  Rule 11. (1) When a choice of the amount of benefits is  referred  to,   an 
advertisement which is an invitation to contract shall  disclose   that   the 
amount of benefits provided depends upon the plan selected   and   that   the 
premium will vary with the amount of the benefits selected.
  (2) When an advertisement which is an invitation to  contract   refers   to 
various benefits which may be contained in 2 or more  policies,  other   than 
group master policies, the advertisement shall disclose  that  the   benefits 
are provided only through a combination of the policies.

  History:  1954 ACS 84, Eff. Aug. 22, 1975; 1979 AC.


R  500.662   Disparaging comparisons and statements.
  Rule 12. An advertisement shall not directly or indirectly  make  unfair or 
incomplete comparisons  of   policies   or   benefits   or   comparisons   of 
noncomparable  policies  of  other  insurers,  and   shall   not    disparage 
competitors, their policies, services, or business methods,  and  shall   not 
disparage or unfairly minimize competing methods of marketing business.

  History: 1979 AC.


R  500.663   Jurisdictional licensing and status of insurer.
  Rule 13. (1) An advertisement which is intended  to  be   seen   or   heard 
beyond the limits of the jurisdiction in which  the   insurer   is   licensed 
shall not imply licensing beyond those limits.
  (2) An advertisement  shall  not  create  the   impression,   directly   or 
indirectly, that the insurer,  its  financial  condition   or   status,   the 
payment of its claims, or the merits, desirability, or  advisability  of  its 
policy forms or kinds or plans of insurance  are   approved,   endorsed,   or 
accredited  by  a  division  or  agency  of  this  state   or   the   federal 
government.
  (3)  An  advertisement  shall  not  imply  or    state    that    approval, 
endorsement, or accreditation of policy  forms  or   advertising   has   been 
granted by any division or agency of this state or the federal government.
"Approval" of either policy forms or advertising shall not be  used   by   an 
insurer to imply or state that  a  governmental  agency   has   endorsed   or 
recommended the insurer, its policies, its advertising,  or   its   financial 
condition.

  History: 1979 AC; 1991 AACS.



R  500.664   Identity of insurer.
  Rule  14.  (1)  The  name  of  the  actual  insurer   shall    be    stated 
conspicuously in all of its advertisements. The form number  of  the   policy 
advertised shall be stated in an advertisement which is  an   invitation   to 
contract. An advertisement shall not use  any  of   the   following   without 
disclosing the name of the actual insurer:
  (a) A trade name.
  (b) An insurance group designation.
  (c) Name of the parent company of the insurer.
  (d) Name of a particular division of the insurer.
  (e) Service mark.
  (f) Slogan.
  (g) Symbol.
  (h) Any other device which would  have  the  capacity   and   tendency   to 
mislead or deceive as to the true identity of the insurer.
  (2) An advertisement shall not use a combination of  words,   symbols,   or 
physical material which, by content, phraseology, shape,  color,   or   other 
characteristics, is so similar  to  combinations  of   words,   symbols,   or 
physical materials used by agencies of the federal government  or   of   this 
state or which otherwise appear to be of such a nature that   it   tends   to 
confuse  or  mislead  prospective  insureds  into    believing    that    the 
solicitation is in some manner connected with an agency  of  the   municipal, 
state, or federal government.
  (3) Advertisements, envelopes, or stationery which  employs  color,  words, 
letters, initials, symbols, or other devices which are   similar   to   those 
used by governmental agencies is not permitted if it may lead  the  public to 
believe either of the following:
  (a) That the advertised coverages are somehow provided   or   endorsed   by 
such governmental agencies.
  (b) That the advertiser is  the  same  as,  is  connected   with,   or   is 
endorsed by, such governmental agencies.
  (4)  Advertisements,  envelopes,  or  stationery   which   employs   words, 
letters, initials, symbols, or other devices which are   similar   to   those 
used by other insurers is not permitted if  it  may  lead   the   public   to 
believe either of the following:
  (a) That the  advertised  coverages  are  somehow  provided   by   or   are 
endorsed by such other insurers.
  (b) That the advertiser is  the  same  as,  is  connected   with,   or   is 
endorsed by, such other insurers.
  (5) An advertisement shall not use the name  of  a   state   or   political 
subdivision thereof in a policy name or description.
  (6) An advertisement in the form of envelopes or stationery  of  any   kind 
shall not use any color, name, service mark, slogan, symbol, or any device in 
a manner that implies that the insurer or  the  policy  advertised,  or  that 
any agent  who  may   call   upon   the   consumer   in   response   to   the 
advertisement, is connected with a governmental agency, such  as  the  social 
security administration or the veterans administration.
  (7) An advertisement shall not incorporate the word   "medicare"   in   the 
title of the plan or policy being advertised, unless, wherever it appears, it 
 is  qualified  by   language   differentiating   it   from   medicare.    An 
advertisement shall not use the phrase " __________  medicare  department  of 
the __________ insurance company," or similar language of similar  import.
  (8) An advertisement for medicare supplement insurance  shall   include   a 
disclaimer similar to the following: "Not connected with   or   endorsed   by 
the United States Government or the Federal Medicare Program."
  (9) An advertisement shall not imply that the reader may lose  a  right  or 
privilege or benefit under federal, state, or local law if he or she fails to 
respond to the advertisement.
  (10) The use of letters, initials, or symbols of the  corporate   name   or 
trademark that would have the tendency or capacity to  mislead   or   deceive 
the public as to the true identity of the insurer   is   prohibited,   unless 
the  true,  correct,  and  complete  name  of  the  insurer   is   in   close 
conjunction to, and in the same size type as, the   letters,   initials,   or 
symbols of the corporate name or trademark.
  (11) The use of the name of an agency or   "__________   underwriters"   or 
"__________ plan" in a type, size, and location that has  the  capacity   and 
tendency to mislead or deceive as to the true identity of  the   insurer   is 
prohibited.
  (12) The use of an address so as to mislead or deceive as   to   the   true 
identity of the insurer, its location, or licensing status is  prohibited.
  (13) An insurer shall not use,  in  the  trade  name   of   its   insurance 
policy, any terminology or words so similar to the name  of  a   governmental 
agency or governmental  program  as  to  have  the   tendency   to   confuse, 
deceive, or mislead a prospective purchaser.
  (14) All advertisements used by agents of an insurer   shall   have   prior 
written approval of the insurer before they may be used.
  (15) An agent who makes contact with a consumer as a  result  of  acquiring 
that consumer's name from a lead-generating  device   shall   disclose   such 
fact in the initial contact with the consumer.

  History: 1979 AC; 1991 AACS.



R  500.665   Group or quasi-group implications.
  Rule 15. (1) An advertisement of a particular policy shall  not  state   or 
imply that  prospective  insureds  become  group   or   quasi-group   members 
covered  under  a  group  policy  and  as  such  enjoy   special   rates   or 
underwriting privileges, unless that is the fact.
  (2) This rule prohibits the solicitation of a particular  class,  such   as 
governmental employees, by use of advertisements which state  or  imply  that 
its occupational status entitles it to reduced rates on a  group   or   other 
basis when, in fact, the policy  being  advertised  is  sold   only   on   an 
individual basis at regular rates.

  History: 1979 AC; 1991 AACS.



R  500.666   Introductory, initial, or special offers.
  Rule 16. (1) An advertisement of an individual policy shall not directly or 
by implication represent that a contract or combination of  contracts  is  an 
introductory, initial, or  special  offer,  that  applicants   will   receive 
substantial advantages not available at a later date, or that  the  offer  is 
available only to a specified group of individuals,  unless   that   is   the 
fact. An advertisement shall not contain phrases  describing  an   enrollment 
period as "special" or "limited" or use similar words or  phrases  when   the 
insurer uses the enrollment periods as the  usual   method   of   advertising 
accident and sickness insurance. The use  of  such  words   or   phrases   is 
permitted if the enrollment periods for a policy are separated  by  not  less 
than 3 months.
  (2) An enrollment period during which a particular insurance product may be 
purchased on an individual basis shall  not  be  offered  within  this  state 
unless there has been a lapse of not less than 3 months between the  close of 
the immediately preceding enrollment period for the  same  product   and  the 
opening of the new enrollment  period  with  not  more  than   2   enrollment 
periods in 1  calendar  year  for  a  particular   insurance   product.   The 
advertisement shall indicate the date by which the   applicant   shall   mail 
the application, which shall be not less than 10 days and not  more  than  40 
days from the date that the enrollment period is advertised  for  the   first 
time. This rule applies to all advertising media by any  insurer.  This  rule 
does not apply to solicitations of employees or members   of   a   particular 
group or association which otherwise  would  be   eligible   under   specific 
provisions of the code for group, blanket,  or   franchise   insurance.   The 
phrase "any insurer" includes all the affiliated companies of  a   group   of 
insurance companies under common management or control.
  (3) This rule prohibits a statement or implication to   the   effect   that 
only a specific number of policies will be sold or that a   time   is   fixed 
for the discontinuance of the sale of  the   particular   policy   advertised 
because of special advantages available in the policy, unless  that  is   the 
fact.
  (4) The phrase "a particular insurance product" in subrule  (2)   of   this 
rule means an insurance  policy  which   provides   substantially   different 
benefits than those contained in any  other  policy.   Different   terms   of 
renewability, an increase or decrease in the dollar amounts  of  benefits, or 
an increase or decrease in an elimination period or waiting period from those 
policies available during an enrollment period  for   another   policy  shall 
not be  sufficient  to  constitute   the   product   being   offered   as   a 
different  product  eligible  for  concurrent   or   overlapping   enrollment 
periods.
  (5) Special awards, such as a safe driver award, shall not   be   used   in 
connection with  advertisements  of  accident  or   accident   and   sickness 
insurance.
  (6) An advertisement shall not offer a policy which  utilizes   a   reduced 
initial premium in a manner which overemphasizes the  availability  and   the 
amount of the reduced initial premium. When an insurer  charges  an   initial 
premium that differs in amount from the renewal  premium   payable   on   the 
same mode, the advertisement shall not display the amount  of   the   reduced 
initial premium either  more  frequently  or  more   prominently   than   the 
renewal premium, and both the reduced  initial  premium   and   the   renewal 
premium  shall  be  stated  in  juxtaposition  in  each   portion   of    the 
advertisement  where  the  reduced  initial  premium   appears.   The    term 
"juxtaposition" means side by side or immediately above or below.

  History: 1979 AC; 1991 AACS.



R  500.667   Statements about insurer.
  Rule 17. An advertisement shall not contain a statement which is untrue, in 
fact,  or  by  implication   misleading   with   respect   to   the   assets, 
corporate structure, financial standing, age, or relative  position  of   the 
insurer in the insurance business. An advertisement shall   not   contain   a 
recommendation of a commercial rating organization unless the  limitations of 
the scope and extent of the recommendation are fully explained.

  History: 1979 AC.


R  500.668   Enforcement.
  Rule 18. (1) Each insurer shall  maintain,  at  its   home   or   principal 
office, a complete file containing every printed,  published,   or   prepared 
advertisement of its individual policies and typical  printed,  published, or 
prepared advertisements of its blanket, franchise, and  group   policies  and 
certificates disseminated in this state, with a notation  attached  to each   
advertisement   which   indicates   the   manner   and   the    extent     of 
distribution and the form number of any policy advertised. The files shall be 
 made  available  for   periodic    inspection    by    the    bureau.    All 
advertisements shall be maintained in the  file  for  a   period   from   the 
previous  regular  report  on  examination  through  the   next   report   on 
examination. Following the completion of a regular  report  on   examination, 
noncurrent advertising material may be removed from the file.
  (2) Each agent shall maintain, at the home agency or  principal  office,  a 
complete  file  containing   every   printed,    published,    or    prepared 
advertisement which is generated by the agency and which is  not  product  or 
company specific.  Each  advertisement  on  file  shall   have   a   notation 
attached which indicates the manner and the  extent   of   distribution   and 
shall be kept on file by the agency for at least 3 years  beyond   its   last 
date of use.
  (3) Each insurer that is required to file an annual  statement  which   now 
is, or which hereafter becomes, subject to these rules shall  file  with  the 
bureau, with its annual statement, a certificate of compliance executed by an 
authorized officer of the  insurer.   The   certificate   shall   contain   a 
statement that, to the best of the officer's  knowledge,   information,   and 
belief, the advertisements which were disseminated by  the   insurer   during 
the preceding statement year complied, or were  made  to   comply,   in   all 
respects with these rules and the insurance laws of this state.
  (4) Advertising intended for use in this state shall meet the  standards of 
these rules. National advertising that is not intended for use in  this state 
shall contain a disclaimer for this state.

  History: 1979 AC; 1991 AACS; 1997 AACS.


R  500.669   Rescinded.

  History: 1979 AC; 1997 AACS.