Ill. Admin. Code tit. 50, pt. 2002, app A, ILLUSTRATION GG

Current through Register Vol. 48, No. 49, December 6, 2024

Guideline to Section 2002.140(a) and (b)

a) This Section prohibits the use of an advertisement which has the capacity or tendency to mislead or deceive as to the true identity of the insurer. The Section recognizes the existence of holding companies. The requirement that the advertisement refer to the policy form number is applicable to advertisements of individual and franchise policies only. However, the requirement of the policy form number is not applicable to those advertisements for individual and franchise policies not required to disclose information under Sections 2002.70(b)(1) and (8). Subsection (a) and subsection (b) prohibit misleading practices of insurers in connection with the sale of insurance to supplement federal Medicare benefits and confusion by insurers with advertising material used by hospital service corporations or pre-paid health plans.

b) This Section prohibits advertisements, envelopes or stationery which employ words, letters, initials, symbols or other devices which are so similar to those used by governmental agencies or other insurers, including hospital service corporations and pre-paid health plans, that the public may be confused into believing:

1) that the advertised coverages are somehow provided by or are endorsed by such governmental agencies or such other insurers;

2) that the advertised coverages are the same as those provided by such governmental agencies or such other insurers;

3) that the advertiser is the same as, is connected with or is endorsed by such governmental agencies or such other insurers.

c) It is unacceptable for an advertisement to use the name of a state or a political subdivision thereof in a policy name or description. For example, "XYZ insurance company's (name of state) hospital confinement policy" is unacceptable.

d) This Section prohibits an insurer from using envelopes or stationery which have printed thereon any name, service mark, slogan or symbol or using any other device in such a manner that it implies that the insurer or the policy advertised is connected with a governmental agency such as the Social Security Administration or the Veterans Administration.

e) Policies advertised to supplement Medicare benefits are unacceptable if they incorporate the word "MEDICARE" in the title of the plan or policy being advertised unless, wherever it appears, said word is qualified by language differentiating it from Medicare. Such phrases as "Medicare Insurance Supplement" or "insurance to supplement Medicare" are acceptable. Such an advertisement, however, shall not use the phrase "_________ Medicare Department of the XYZ Insurance Company," or language of similar import.

f) Advertisements for policies designed to supplement Medicare benefits are unacceptable if they fail to clearly show that the company or the plan being advertised is not endorsed by the U.S. Government or the federal Medicare program.

g) This Section prohibits an advertisement which implies that the reader may lose a right, privilege or benefit under federal, state or local law if he fails to respond to the advertisement.

h) If the use of letters, initials or symbols of the corporate name or trademark would have the capacity or tendency to mislead or deceive the public as to the true identity of the insurer, this Section prohibits the use of such letters, initials, or symbols without disclosing in close conjunction the true and correct complete name of the insurer which will issue the policy.

i) This Part prohibits the use of the name of an agency or "_______ Underwriters" or "_______ Plan" in type, size and location so as to have the capacity and tendency to mislead or deceive as to the true identity of the insurer and also prohibits an insurer from using an address so as to mislead or deceive as to its true identity, location or licensing status.

Ill. Admin. Code tit. 50, pt. 2002, app A, ILLUSTRATION GG