A New York insurer's magazine advertisement for an individual accident and health policy cites favorable statistics about the share of claims the insurer has paid. Under Reg 34 (11 NYCRR Part 215), what must the advertisement do?

Why D is correct

Under Reg 34 (11 NYCRR Part 215), an advertisement that uses statistics relating to claims paid, the number of persons insured, or similar information must not use irrelevant facts and must accurately reflect all of the relevant facts. The source of any statistics used must be identified in the advertisement itself, and the advertisement must not imply that the statistics are derived from the advertised policy unless that is true. This lets the Superintendent of Financial Services and consumers verify the figures used to promote the coverage.

Why the other options are wrong

• A) Reg 34 does not require pre-publication approval of each statistic; it imposes content standards that are enforced after the fact.
• B) Statistics about other policies or plans may be used as long as the advertisement accurately states what they relate to; they need not come from the advertised policy.
• C) An independent auditor is not required; the requirement is to disclose the source and to use statistics that accurately reflect the relevant facts.

Memory hook

Statistics in a Reg 34 ad: accurate, relevant, and sourced.