A marketing mailer aimed at seniors describes new benefits available for California residents but does not state that its purpose is insurance solicitation or that an agent will contact the reader. Under CIC Section 10234.93(b)(3), this practice is...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
CIC Section 10234.93(b)(3) prohibits cold lead advertising: making use, directly or indirectly, of any marketing method that fails to disclose in a conspicuous manner that a purpose of the method is solicitation of insurance and that contact will be made by an insurance agent or insurance company. A mailer that hides its insurance-solicitation purpose and fails to warn that an agent will follow up is a textbook violation. California also prohibits twisting under Section 10234.93(b)(1) and high-pressure tactics under Section 10234.93(b)(2). Agents must ensure lead-generating materials are transparent so seniors are not misled into expecting a government or Medicare contact.
Why the other options are wrong
- B) Being sent by a licensed insurer does not cure a failure to disclose; the conspicuous-disclosure requirement applies to all marketing regardless of sender.
- C) The statute requires a conspicuous disclosure of the solicitation purpose; there is no 10-point-type safe harbor that waives the disclosure.
- D) Cold lead advertising for LTC insurance is regulated by California statute (CIC Section 10234.93); federal rules do not displace the state prohibition.
Memory hook
Cold lead = hidden pitch. Must conspicuously say insurance solicitation and an agent will call.