State RegulationsFL specificDifficulty 2/5
Which of the following advertising practices by a Florida life agent would violate Florida unfair trade practice law?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Chapter 626, Florida Statutes, enforced by the DFS, it is an unfair trade practice to misrepresent the true nature of an insurance contract in advertising or sales material. Calling life insurance an investment plan while concealing that it is insurance misleads consumers about the product's nature; the other listed practices are required disclosures or conduct exempt under Fla. Stat. 626.9541(1)(m).
Why the other options are wrong
- B) Delivering the Buyer's Guide is a required consumer disclosure, not a violation of any rule.
- C) An advertising gift within the $100 annual exemption is lawful under Fla. Stat. 626.9541(1)(m).
- D) Identifying the issuing insurer is accurate disclosure, not misrepresentation of the product.
Memory hook
Call insurance insurance - mislabeling is the violation.