State RegulationsOH specificDifficulty 2/5
A Dayton producer runs a social media advertisement promising that an annuity will 'double your money in 5 years, guaranteed,' a claim he knows to be untrue. This advertisement is best characterized as:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
A knowingly false performance guarantee in an advertisement is an untrue, deceptive, and misleading statement about the business of insurance, which is false advertising under ORC 3901.21(B) and is further addressed by ORC 3901.24. The Ohio Department of Insurance can pursue the producer and insurer for the deceptive solicitation, and misrepresenting policy terms is also a disciplinary ground under ORC 3905.14(B).
Why the other options are wrong
- A) Ohio regulates insurance advertising directly through ORC 3901.21 and related provisions; exaggerated claims that are untrue receive no puffery safe harbor.
- B) Rebating involves giving or offering premiums, favors, or valuable consideration not specified in the contract; a false promise about future performance is a misrepresentation, not a rebate.
- D) Unfair discrimination concerns treating individuals of the same class unequally in rates or benefits; one uniform false claim made to all prospects does not discriminate among them.
Memory hook
If the ad's promise is false, so is the producer's defense.