State RegulationsOH specificDifficulty 1/5
Under ORC 3901.21(B), which of the following constitutes false advertising in the business of insurance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
ORC 3901.21(B) defines false advertising as making, publishing, disseminating, or circulating any assertion, representation, or statement about the business of insurance that is untrue, deceptive, or misleading. Related provisions such as ORC 3901.24 reinforce the advertising standards enforced by the Ohio Superintendent of Insurance, and misleading advertising is also a ground for discipline under ORC 3905.14(B).
Why the other options are wrong
- B) Truthfully distinguishing guaranteed elements from non-guaranteed elements is exactly the kind of accurate disclosure Ohio law encourages, not a misleading assertion.
- C) Quoting a premium based on the applicant's own risk class is proper underwriting and rating, as long as individuals of the same class are treated alike.
- D) Telling a prospect that dividends are not guaranteed is honest disclosure; the violation arises only when statements about dividends or benefits are untrue or misleading.
Memory hook
False advertising = untrue, deceptive, or misleading — about the business of insurance.