State RegulationsFL specificDifficulty 2/5
An insurer's advertisement describes a health policy as having 'no preexisting condition limitations,' although the contract contains a standard preexisting condition exclusion. Under Florida law, the advertisement is
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Fla. Stat. 626.9541 (Chapter 626, Florida Statutes), issuing or circulating advertisements that misrepresent the terms, benefits, or advantages of a policy is an unfair trade practice. Because the advertisement contradicts the contract's actual exclusion, the ad - not the underlying form approval - is the violation, and both the insurer and any agent who uses the ad face DFS penalties.
Why the other options are wrong
- A) The accuracy of the policy form does not cure a public statement that contradicts the contract's terms.
- B) OIR form approval goes to the contract language, not to the truth of marketing statements about it.
- D) No competitor or its business was attacked, so defamation is not the issue.
Memory hook
The ad must match the contract.