§ 58‑58‑260. Advertising for viatical settlements.
(a) The purpose of thissection is to provide prospective viators with clear and unambiguous statementsin the advertisement of viatical settlements and to assure the clear, truthful,and adequate disclosure of the benefits, risks, limitations, and exclusions ofany contract. This purpose is intended to be accomplished by the establishmentof guidelines and standards of permissible and impermissible conduct in theadvertising of viatical settlements to assure that product descriptions arepresented in a manner that prevents unfair, deceptive, or misleadingadvertising and is conducive to accurate presentation and description ofviatical settlements through the advertising media and material used by viaticalsettlement licensees.
(b) This section shallapply to any advertising of contracts or related products or services intendedfor dissemination in this State, including Internet advertising viewed bypersons located in this State. Where disclosure requirements are establishedpursuant to federal regulation, this section shall be interpreted so as tominimize or eliminate conflict with federal regulation wherever possible.
(c) Every viaticalsettlement licensee shall establish and at all times maintain a system ofcontrol over the content, form, and method of dissemination of alladvertisements of its contracts, products, and services. All advertisements,regardless of by whom written, created, designed, or presented, shall be theresponsibility of the viatical settlement licensee, as well as the individualwho created or presented the advertisement. A system of control shall includeregular routine notification, at least once a year, to agents and others,authorized by the viatical settlement licensee, who disseminate advertisementsof the requirements and procedures for approval before the use of anyadvertisements not furnished by the viatical settlement licensee.
(d) Advertisementsshall be truthful and not misleading in fact or by implication. The form and contentof an advertisement of a contract shall be sufficiently complete and clear soas to avoid deception. It shall not have the capacity or tendency to mislead ordeceive. Whether an advertisement has the capacity or tendency to mislead ordeceive shall be determined by the Commissioner from the overall impressionthat the advertisement may be reasonably expected to create upon a person ofaverage education or intelligence within the segment of the public to which itis directed.
(e) All informationrequired to be disclosed under this Part shall be set out conspicuously and inclose conjunction with the statements to which such information relates orunder appropriate captions of such prominence that it shall not be minimized,rendered obscure, or presented in an ambiguous fashion or intermingled with thecontext of the advertisement so as to be confusing or misleading.
(f) An advertisementshall not:
(1) Omit materialinformation or use words, phrases, statements, references, or illustrations ifthe omission or use has the capacity, tendency, or effect of misleading ordeceiving viators as to the nature or extent of any benefit, loss covered,premium payable, or state or federal tax consequence. The fact that thecontract offered is made available for inspection before consummation of thesale, or an offer is made to refund the payment if the viator is not satisfiedor that the contract includes a "free look" period that satisfies orexceeds legal requirements, does not remedy misleading statements.
(2) Use the name ortitle of a life insurance company or a policy unless the insurer has approvedthe advertisement.
(3) State or imply thatinterest charged on an accelerated death benefit or a policy loan is unfair,inequitable, or in any manner an incorrect or improper practice.
(4) State or imply thata contract, benefit, or service has been approved or endorsed by a group ofindividuals, society, association, or other organization unless that is thefact and unless any relationship between an organization and the viaticalsettlement licensee is disclosed. If the entity making the endorsement ortestimonial is owned, controlled, or managed by the viatical settlementlicensee, or receives any payment or other consideration from the viaticalsettlement licensee for making an endorsement or testimonial, that fact shallbe disclosed in the advertisement.
(5) Contain statisticalinformation unless it accurately reflects recent and relevant facts. The sourceof all statistics used in an advertisement shall be identified.
(7) Use a trade name,group designation, name of the parent company of a viatical settlementlicensee, name of a particular division of the viatical settlement licensee,service mark, slogan, symbol, or other device or reference without disclosingthe name of the viatical settlement licensee, if the advertisement would havethe capacity or tendency to mislead or deceive as to the true identity of theviatical settlement licensee, or to create the impression that a company otherthan the viatical settlement licensee would have any responsibility for thefinancial obligation under a contract.
(8) Use any combinationof words, symbols, or physical materials that by their content, phraseology,shape, color, or other characteristics are so similar to a combination ofwords, symbols, or physical materials used by a government program or agency orotherwise appear to be of such a nature that they tend to mislead prospectiveviators into believing that the solicitation is in some manner connected with agovernment program or agency.
(9) Create theimpression that the provider, its financial condition or status, the payment ofits claims, or the merits, desirability, or advisability of its contracts arerecommended or endorsed by any government entity.
(g) The words"free", "no cost", "without cost", "noadditional cost", "at no extra cost", or words of similar importshall not be used with respect to any benefit or service unless true. Anadvertisement may specify the charge for a benefit or a service, may state thata charge is included in the payment, or use other appropriate language.
(h) Testimonials,appraisals, or analyses used in advertisements must be genuine; represent thecurrent opinion of the author; be applicable to the contract, product, orservice advertised, if any; and be accurately reproduced with sufficientcompleteness to avoid misleading or deceiving prospective viators as to thenature or scope of the testimonials, appraisals, analyses, or endorsements. Inusing testimonials, appraisals, or analyses, the viatical settlement licenseemakes as its own all the statements contained therein, and the statements aresubject to all the provisions of this section.
(i) If the individualmaking a testimonial, appraisal, analysis, or an endorsement has a financialinterest in the provider or related entity as a stockholder, director, officer,employee, or otherwise, or receives any benefit directly or indirectly otherthan required union scale wages, that fact shall be prominently disclosed inthe advertisement.
(j) When anendorsement refers to benefits received under a contract, all pertinentinformation shall be retained for a period of five years after its use.
(k) The name of theviatical settlement licensee shall be clearly identified in all advertisementsabout the licensee or its contracts, products, or services, and if any specificcontract is advertised, the contract shall be identified either by form numberor some other appropriate description. If an application is part of theadvertisement, the name of the provider or broker shall be shown on theapplication.
(l) An advertisementmay state that a viatical settlement licensee is licensed in the state wherethe advertisement appears, provided it does not exaggerate that fact or suggestor imply that a competing viatical settlement licensee may not be so licensed.The advertisement may ask the audience to consult the licensee's web site orcontact the Department to find out if the state requires licensing and, if so,whether the provider or broker is licensed.
(m) The name of theactual licensee shall be stated in all of its advertisements. An advertisementshall not use a trade name, any group designation, name of any affiliate orcontrolling entity of the licensee, service mark, slogan, symbol, or otherdevice in a manner that would have the capacity or tendency to mislead ordeceive as to the true identity of the actual licensee or create the falseimpression that an affiliate or controlling entity would have anyresponsibility for the financial obligation of the licensee.
(n) An advertisementshall not directly or indirectly create the impression that any state orfederal governmental agency endorses, approves, or favors:
(1) Any viaticalsettlement licensee or its business practices or methods of operation;
(2) The merits,desirability, or advisability of any contract;
(3) Any contract; or
(4) Any policy or lifeinsurance company.
(o) If the advertiseremphasizes the speed with which the viatication will occur, the advertisingmust disclose the average time frame from completed application to the date ofoffer and from acceptance of the offer to receipt of the funds by the viator.
(p) If the advertisingemphasizes the dollar amounts available to viators, the advertising shalldisclose the average purchase price as a percent of face value obtained byviators contracting with the licensee during the past six months. (2001‑436, s. 3.)
§ 58‑58‑260. Advertising for viatical settlements.
(a) The purpose of thissection is to provide prospective viators with clear and unambiguous statementsin the advertisement of viatical settlements and to assure the clear, truthful,and adequate disclosure of the benefits, risks, limitations, and exclusions ofany contract. This purpose is intended to be accomplished by the establishmentof guidelines and standards of permissible and impermissible conduct in theadvertising of viatical settlements to assure that product descriptions arepresented in a manner that prevents unfair, deceptive, or misleadingadvertising and is conducive to accurate presentation and description ofviatical settlements through the advertising media and material used by viaticalsettlement licensees.
(b) This section shallapply to any advertising of contracts or related products or services intendedfor dissemination in this State, including Internet advertising viewed bypersons located in this State. Where disclosure requirements are establishedpursuant to federal regulation, this section shall be interpreted so as tominimize or eliminate conflict with federal regulation wherever possible.
(c) Every viaticalsettlement licensee shall establish and at all times maintain a system ofcontrol over the content, form, and method of dissemination of alladvertisements of its contracts, products, and services. All advertisements,regardless of by whom written, created, designed, or presented, shall be theresponsibility of the viatical settlement licensee, as well as the individualwho created or presented the advertisement. A system of control shall includeregular routine notification, at least once a year, to agents and others,authorized by the viatical settlement licensee, who disseminate advertisementsof the requirements and procedures for approval before the use of anyadvertisements not furnished by the viatical settlement licensee.
(d) Advertisementsshall be truthful and not misleading in fact or by implication. The form and contentof an advertisement of a contract shall be sufficiently complete and clear soas to avoid deception. It shall not have the capacity or tendency to mislead ordeceive. Whether an advertisement has the capacity or tendency to mislead ordeceive shall be determined by the Commissioner from the overall impressionthat the advertisement may be reasonably expected to create upon a person ofaverage education or intelligence within the segment of the public to which itis directed.
(e) All informationrequired to be disclosed under this Part shall be set out conspicuously and inclose conjunction with the statements to which such information relates orunder appropriate captions of such prominence that it shall not be minimized,rendered obscure, or presented in an ambiguous fashion or intermingled with thecontext of the advertisement so as to be confusing or misleading.
(f) An advertisementshall not:
(1) Omit materialinformation or use words, phrases, statements, references, or illustrations ifthe omission or use has the capacity, tendency, or effect of misleading ordeceiving viators as to the nature or extent of any benefit, loss covered,premium payable, or state or federal tax consequence. The fact that thecontract offered is made available for inspection before consummation of thesale, or an offer is made to refund the payment if the viator is not satisfiedor that the contract includes a "free look" period that satisfies orexceeds legal requirements, does not remedy misleading statements.
(2) Use the name ortitle of a life insurance company or a policy unless the insurer has approvedthe advertisement.
(3) State or imply thatinterest charged on an accelerated death benefit or a policy loan is unfair,inequitable, or in any manner an incorrect or improper practice.
(4) State or imply thata contract, benefit, or service has been approved or endorsed by a group ofindividuals, society, association, or other organization unless that is thefact and unless any relationship between an organization and the viaticalsettlement licensee is disclosed. If the entity making the endorsement ortestimonial is owned, controlled, or managed by the viatical settlementlicensee, or receives any payment or other consideration from the viaticalsettlement licensee for making an endorsement or testimonial, that fact shallbe disclosed in the advertisement.
(5) Contain statisticalinformation unless it accurately reflects recent and relevant facts. The sourceof all statistics used in an advertisement shall be identified.
(7) Use a trade name,group designation, name of the parent company of a viatical settlementlicensee, name of a particular division of the viatical settlement licensee,service mark, slogan, symbol, or other device or reference without disclosingthe name of the viatical settlement licensee, if the advertisement would havethe capacity or tendency to mislead or deceive as to the true identity of theviatical settlement licensee, or to create the impression that a company otherthan the viatical settlement licensee would have any responsibility for thefinancial obligation under a contract.
(8) Use any combinationof words, symbols, or physical materials that by their content, phraseology,shape, color, or other characteristics are so similar to a combination ofwords, symbols, or physical materials used by a government program or agency orotherwise appear to be of such a nature that they tend to mislead prospectiveviators into believing that the solicitation is in some manner connected with agovernment program or agency.
(9) Create theimpression that the provider, its financial condition or status, the payment ofits claims, or the merits, desirability, or advisability of its contracts arerecommended or endorsed by any government entity.
(g) The words"free", "no cost", "without cost", "noadditional cost", "at no extra cost", or words of similar importshall not be used with respect to any benefit or service unless true. Anadvertisement may specify the charge for a benefit or a service, may state thata charge is included in the payment, or use other appropriate language.
(h) Testimonials,appraisals, or analyses used in advertisements must be genuine; represent thecurrent opinion of the author; be applicable to the contract, product, orservice advertised, if any; and be accurately reproduced with sufficientcompleteness to avoid misleading or deceiving prospective viators as to thenature or scope of the testimonials, appraisals, analyses, or endorsements. Inusing testimonials, appraisals, or analyses, the viatical settlement licenseemakes as its own all the statements contained therein, and the statements aresubject to all the provisions of this section.
(i) If the individualmaking a testimonial, appraisal, analysis, or an endorsement has a financialinterest in the provider or related entity as a stockholder, director, officer,employee, or otherwise, or receives any benefit directly or indirectly otherthan required union scale wages, that fact shall be prominently disclosed inthe advertisement.
(j) When anendorsement refers to benefits received under a contract, all pertinentinformation shall be retained for a period of five years after its use.
(k) The name of theviatical settlement licensee shall be clearly identified in all advertisementsabout the licensee or its contracts, products, or services, and if any specificcontract is advertised, the contract shall be identified either by form numberor some other appropriate description. If an application is part of theadvertisement, the name of the provider or broker shall be shown on theapplication.
(l) An advertisementmay state that a viatical settlement licensee is licensed in the state wherethe advertisement appears, provided it does not exaggerate that fact or suggestor imply that a competing viatical settlement licensee may not be so licensed.The advertisement may ask the audience to consult the licensee's web site orcontact the Department to find out if the state requires licensing and, if so,whether the provider or broker is licensed.
(m) The name of theactual licensee shall be stated in all of its advertisements. An advertisementshall not use a trade name, any group designation, name of any affiliate orcontrolling entity of the licensee, service mark, slogan, symbol, or otherdevice in a manner that would have the capacity or tendency to mislead ordeceive as to the true identity of the actual licensee or create the falseimpression that an affiliate or controlling entity would have anyresponsibility for the financial obligation of the licensee.
(n) An advertisementshall not directly or indirectly create the impression that any state orfederal governmental agency endorses, approves, or favors:
(1) Any viaticalsettlement licensee or its business practices or methods of operation;
(2) The merits,desirability, or advisability of any contract;
(3) Any contract; or
(4) Any policy or lifeinsurance company.
(o) If the advertiseremphasizes the speed with which the viatication will occur, the advertisingmust disclose the average time frame from completed application to the date ofoffer and from acceptance of the offer to receipt of the funds by the viator.
(p) If the advertisingemphasizes the dollar amounts available to viators, the advertising shalldisclose the average purchase price as a percent of face value obtained byviators contracting with the licensee during the past six months. (2001‑436, s. 3.)
§ 58‑58‑260. Advertising for viatical settlements.
(a) The purpose of thissection is to provide prospective viators with clear and unambiguous statementsin the advertisement of viatical settlements and to assure the clear, truthful,and adequate disclosure of the benefits, risks, limitations, and exclusions ofany contract. This purpose is intended to be accomplished by the establishmentof guidelines and standards of permissible and impermissible conduct in theadvertising of viatical settlements to assure that product descriptions arepresented in a manner that prevents unfair, deceptive, or misleadingadvertising and is conducive to accurate presentation and description ofviatical settlements through the advertising media and material used by viaticalsettlement licensees.
(b) This section shallapply to any advertising of contracts or related products or services intendedfor dissemination in this State, including Internet advertising viewed bypersons located in this State. Where disclosure requirements are establishedpursuant to federal regulation, this section shall be interpreted so as tominimize or eliminate conflict with federal regulation wherever possible.
(c) Every viaticalsettlement licensee shall establish and at all times maintain a system ofcontrol over the content, form, and method of dissemination of alladvertisements of its contracts, products, and services. All advertisements,regardless of by whom written, created, designed, or presented, shall be theresponsibility of the viatical settlement licensee, as well as the individualwho created or presented the advertisement. A system of control shall includeregular routine notification, at least once a year, to agents and others,authorized by the viatical settlement licensee, who disseminate advertisementsof the requirements and procedures for approval before the use of anyadvertisements not furnished by the viatical settlement licensee.
(d) Advertisementsshall be truthful and not misleading in fact or by implication. The form and contentof an advertisement of a contract shall be sufficiently complete and clear soas to avoid deception. It shall not have the capacity or tendency to mislead ordeceive. Whether an advertisement has the capacity or tendency to mislead ordeceive shall be determined by the Commissioner from the overall impressionthat the advertisement may be reasonably expected to create upon a person ofaverage education or intelligence within the segment of the public to which itis directed.
(e) All informationrequired to be disclosed under this Part shall be set out conspicuously and inclose conjunction with the statements to which such information relates orunder appropriate captions of such prominence that it shall not be minimized,rendered obscure, or presented in an ambiguous fashion or intermingled with thecontext of the advertisement so as to be confusing or misleading.
(f) An advertisementshall not:
(1) Omit materialinformation or use words, phrases, statements, references, or illustrations ifthe omission or use has the capacity, tendency, or effect of misleading ordeceiving viators as to the nature or extent of any benefit, loss covered,premium payable, or state or federal tax consequence. The fact that thecontract offered is made available for inspection before consummation of thesale, or an offer is made to refund the payment if the viator is not satisfiedor that the contract includes a "free look" period that satisfies orexceeds legal requirements, does not remedy misleading statements.
(2) Use the name ortitle of a life insurance company or a policy unless the insurer has approvedthe advertisement.
(3) State or imply thatinterest charged on an accelerated death benefit or a policy loan is unfair,inequitable, or in any manner an incorrect or improper practice.
(4) State or imply thata contract, benefit, or service has been approved or endorsed by a group ofindividuals, society, association, or other organization unless that is thefact and unless any relationship between an organization and the viaticalsettlement licensee is disclosed. If the entity making the endorsement ortestimonial is owned, controlled, or managed by the viatical settlementlicensee, or receives any payment or other consideration from the viaticalsettlement licensee for making an endorsement or testimonial, that fact shallbe disclosed in the advertisement.
(5) Contain statisticalinformation unless it accurately reflects recent and relevant facts. The sourceof all statistics used in an advertisement shall be identified.
(7) Use a trade name,group designation, name of the parent company of a viatical settlementlicensee, name of a particular division of the viatical settlement licensee,service mark, slogan, symbol, or other device or reference without disclosingthe name of the viatical settlement licensee, if the advertisement would havethe capacity or tendency to mislead or deceive as to the true identity of theviatical settlement licensee, or to create the impression that a company otherthan the viatical settlement licensee would have any responsibility for thefinancial obligation under a contract.
(8) Use any combinationof words, symbols, or physical materials that by their content, phraseology,shape, color, or other characteristics are so similar to a combination ofwords, symbols, or physical materials used by a government program or agency orotherwise appear to be of such a nature that they tend to mislead prospectiveviators into believing that the solicitation is in some manner connected with agovernment program or agency.
(9) Create theimpression that the provider, its financial condition or status, the payment ofits claims, or the merits, desirability, or advisability of its contracts arerecommended or endorsed by any government entity.
(g) The words"free", "no cost", "without cost", "noadditional cost", "at no extra cost", or words of similar importshall not be used with respect to any benefit or service unless true. Anadvertisement may specify the charge for a benefit or a service, may state thata charge is included in the payment, or use other appropriate language.
(h) Testimonials,appraisals, or analyses used in advertisements must be genuine; represent thecurrent opinion of the author; be applicable to the contract, product, orservice advertised, if any; and be accurately reproduced with sufficientcompleteness to avoid misleading or deceiving prospective viators as to thenature or scope of the testimonials, appraisals, analyses, or endorsements. Inusing testimonials, appraisals, or analyses, the viatical settlement licenseemakes as its own all the statements contained therein, and the statements aresubject to all the provisions of this section.
(i) If the individualmaking a testimonial, appraisal, analysis, or an endorsement has a financialinterest in the provider or related entity as a stockholder, director, officer,employee, or otherwise, or receives any benefit directly or indirectly otherthan required union scale wages, that fact shall be prominently disclosed inthe advertisement.
(j) When anendorsement refers to benefits received under a contract, all pertinentinformation shall be retained for a period of five years after its use.
(k) The name of theviatical settlement licensee shall be clearly identified in all advertisementsabout the licensee or its contracts, products, or services, and if any specificcontract is advertised, the contract shall be identified either by form numberor some other appropriate description. If an application is part of theadvertisement, the name of the provider or broker shall be shown on theapplication.
(l) An advertisementmay state that a viatical settlement licensee is licensed in the state wherethe advertisement appears, provided it does not exaggerate that fact or suggestor imply that a competing viatical settlement licensee may not be so licensed.The advertisement may ask the audience to consult the licensee's web site orcontact the Department to find out if the state requires licensing and, if so,whether the provider or broker is licensed.
(m) The name of theactual licensee shall be stated in all of its advertisements. An advertisementshall not use a trade name, any group designation, name of any affiliate orcontrolling entity of the licensee, service mark, slogan, symbol, or otherdevice in a manner that would have the capacity or tendency to mislead ordeceive as to the true identity of the actual licensee or create the falseimpression that an affiliate or controlling entity would have anyresponsibility for the financial obligation of the licensee.
(n) An advertisementshall not directly or indirectly create the impression that any state orfederal governmental agency endorses, approves, or favors:
(1) Any viaticalsettlement licensee or its business practices or methods of operation;
(2) The merits,desirability, or advisability of any contract;
(3) Any contract; or
(4) Any policy or lifeinsurance company.
(o) If the advertiseremphasizes the speed with which the viatication will occur, the advertisingmust disclose the average time frame from completed application to the date ofoffer and from acceptance of the offer to receipt of the funds by the viator.
(p) If the advertisingemphasizes the dollar amounts available to viators, the advertising shalldisclose the average purchase price as a percent of face value obtained byviators contracting with the licensee during the past six months. (2001‑436, s. 3.)
