A New York insurer markets individual accident and health policies under the brand name 'Empire Wellness Plans,' using the trade name, a slogan and a logo, without printing the name of the underwriting insurer or the advertised policy form numbers. Under Reg 34 (11 NYCRR Part 215), this advertisement is:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Reg 34 (11 NYCRR Part 215), the name of the actual insurer and the form number or numbers advertised must be identified and made clear in all advertisements. An advertisement may not use a trade name, insurance group designation, parent-company name, service mark, slogan, symbol or other device that, without disclosing the actual insurer's name, would mislead or deceive as to the true identity of the insurer. Branding the ad solely as 'Empire Wellness Plans' hides the underwriting company, and the Superintendent of Financial Services may treat the advertisement as deceptive advertising.
Why the other options are wrong
- A) Reg 34's rules are not limited to benefit descriptions; the regulation also requires that every advertisement clearly identify the insurer behind it.
- B) Identification must occur in the advertisement itself; the consumer cannot be expected to wait until policy delivery to learn which insurer is obligated.
- D) The insurer-identification requirement applies to every advertisement of accident and health insurance; it is not triggered only by descriptions of specific policy benefits.
Memory hook
Reg 34: an ad must name the real insurer; a brand name alone does not count.