State RegulationsGA specificDifficulty 2/5
A Georgia insurer's life policy illustration shows projected values and states that it "has been reviewed and approved by the Georgia Office of Commissioner of Insurance and Safety Fire." Under Reg. 120-2-11-.10, what is wrong with this advertisement?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Reg. 120-2-11-.10, advertisements may not imply that the Department or the Commissioner approves or endorses illustrations or policy forms. Claiming governmental approval misleads the applicant into thinking the state guarantees the projections; the regulation also bars implying benefits not in the policy, stockholder-type ownership or profits, and noncompliant dividend projections.
Why the other options are wrong
- B) Wrong: there is no rule requiring an applicant's signature before an illustration is shown; the violation is the false government-approval claim.
- C) Wrong: projected values may be illustrated; the rule prohibits only misrepresenting them or implying state endorsement, not showing them.
- D) Wrong: approval by a general agent is not a substitute and would not cure the prohibited implication of governmental endorsement.
Memory hook
The state regulates insurers - it never endorses their illustrations.