State RegulationsVA specificDifficulty 2/5
An agent independently designs a flashy mailer about a life policy he sells, using his own wording and layout. Under 14 VAC 5-41, who is accountable if the mailer misleads consumers about the policy's benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Virginia's advertisement rules under 14 VAC 5-41 make the insurer whose product is advertised responsible for the content of advertisements used in marketing its policies, and the agent who uses the piece is likewise on the hook. The fact that an agent drafted the material on his own does not insulate the insurer — the regulatory duty requires insurers to control and monitor how their products are promoted. Both participants therefore answer for a misleading mailer.
Why the other options are wrong
- A) Independent drafting does not shift the entire burden onto the agent; the insurer whose policy is advertised remains accountable under 14 VAC 5-41.
- B) The printer is a mechanical participant; accountability rests with the insurer and the agent who created and used the advertisement.
- D) An advertisement need not contain an outright lie to be unlawful — a misleading impression of the policy's benefits is enough to violate the rule.
Memory hook
If the ad sells your policy, your name is on it — the insurer and the agent answer together.