State RegulationsNY specificDifficulty 1/5
Which statement about the regulation of life insurance advertising in New York is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under N.Y. Ins. Law §2122, unfair methods of competition and deceptive acts or practices — including misleading advertising in the business of insurance — are prohibited, and the New York State Department of Financial Services, through the Superintendent, examines and enforces against these practices. Both insurers and the agents who use the advertising are subject to enforcement.
Why the other options are wrong
- B) Oral statements used to solicit insurance are covered by the same unfair-trade-practice rules as written material.
- C) Agents, as well as insurers, are covered — a licensee who uses misleading advertising commits an unfair trade practice.
- D) Misleading consumers about one's own policy is prohibited even when no competitor is mentioned.
Memory hook
DFS watches all ads — spoken or written, insurer or agent.