State RegulationsFL specificDifficulty 1/5
A Florida insurer's advertisement for a long-term care policy describes benefits that are far broader than the policy actually provides. Under Florida law, this advertisement is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Fla. Stat. 626.9541, misrepresenting the terms, benefits, or advantages of an insurance policy, including a long-term care policy, is an unfair trade practice in Florida. A misleading LTC advertisement exposes the insurer and the responsible agent to administrative penalties, so the violation cannot be cured by accurate policy text or by internal approval; the advertisement itself must be truthful.
Why the other options are wrong
- B) Florida actively regulates insurance advertising through its unfair trade practices statute; federal law does not displace these state rules.
- C) An accurately drafted policy does not excuse a misleading advertisement; the public misrepresentation itself is the violation.
- D) Home-office approval provides no safe harbor; a misleading advertisement violates the statute regardless of internal sign-off.
Memory hook
An ad that overpromises is an unfair trade practice, period.