State RegulationsFL specificDifficulty 2/5
A Florida agent wants to advertise a life insurance product in a local newspaper. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Florida law administered by the Department of Financial Services (Chapter 626, Florida Statutes), insurance advertisements must be truthful and not misleading, and an insurer is responsible for the advertising its agents use on its behalf. Misleading advertisements are unfair trade practices. Agents therefore cannot run self-designed ads free of insurer oversight, and no rule exempts ads that omit the insurer's name.
Why the other options are wrong
- A) Agents are licensed but not free of oversight - the insurer answers for its agents' ads.
- B) The DFS regulates advertising; it does not draft the industry's advertisements.
- C) Advertising is regulated whether or not the insurer is named, and omitting the name does not create an exemption.
Memory hook
Truthful ads, and the insurer answers for its agents.