State RegulationsGA specificDifficulty 2/5
A Georgia insurer's appointed producer designs and publishes his own newspaper advertisement for one of the company's life policies without submitting it for company review. Under Georgia advertising rules, who is responsible for the content of this advertisement?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg. 120-2-11-.04, every insurer must maintain a system of control over the content, form, and dissemination of all of its advertisements. An advertisement remains the insurer's responsibility even when a producer drafted and placed it without company review, which is why insurers must police their producers' advertising. The practical consequence is that the insurer faces regulatory action for a producer's independent ad.
Why the other options are wrong
- A) The rule does not shift responsibility to the author; Reg. 120-2-11-.04 places the system of control on the insurer no matter who wrote the piece.
- B) A newspaper or other medium is simply a dissemination channel and is not the regulated party under the Georgia advertising rules.
- C) The Insurance Commissioner enforces advertising standards but does not pre-approve every advertisement; the insurer's own control system is the required mechanism.
Memory hook
Whoever writes it, the insurer wears it.