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State RegulationsGA specificDifficulty 1/5

Which term, if used in a Georgia life insurance advertisement in a way that suggests the policy is really a savings or banking product, appears on the express list of prohibited misleading terms?

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under Reg. 120-2-11-.05, advertisements may not use the words 'investment,' 'profit,' 'deposit,' 'savings,' 'savings plan,' or 'investment plan' in any context that misleads the public about the true nature of the policy. A life policy marketed as a 'savings plan' mischaracterizes the product, so this term is expressly controlled. Producers should describe actual policy features instead of borrowing banking vocabulary.

Why the other options are wrong

  • B) Describing the death benefit protection a policy provides is an accurate statement of a real policy feature, not a misleading characterization.
  • C) A premium payment schedule describes how premiums are paid and misrepresents nothing about the policy's nature.
  • D) Policy loan availability is a genuine life policy feature and does not mislead about the product's insurance character.

Memory hook

Bank words - savings, investment, profit, deposit - stay out of policy ads.

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