State RegulationsGA specificDifficulty 3/5
A Georgia insurer is reviewing draft advertisements for compliance. Which advertisement would violate Georgia's advertising rules?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Reg. 120-2-11-.10 prohibits advertisements that imply benefits not contained in the policy or imply that a policy or illustration has been approved or endorsed by the Insurance Department. The Department does not approve sales illustrations, so any suggestion of such approval misleads consumers and violates the rule.
Why the other options are wrong
- A) Accurately listing guaranteed benefits is exactly what an advertisement is supposed to do and complies with Reg. 120-2-11-.10.
- C) Identifying the insurer's home office and license status is factual information permitted under Georgia's advertising rules.
- D) Describing actual conversion privileges states a real policy benefit and does not violate Reg. 120-2-11-.10.
Memory hook
The Department regulates ads; it never approves them — no endorsement-implying layouts.