02-031 C.M.R. ch. 140, § 3 - Advertisements of benefits payable, losses covered or premiums payable

Current through 2022-14, April 6, 2022

A. Deceptive Words, Phrases or Illustrations:

Words, phrases or illustrations shall not be used in a manner which misleads or has the capacity and tendency to deceive as to the extent of any policy benefit payable, loss covered or premium payable. An advertisement relating to any policy benefit payable, loss covered or premium payable shall be sufficiently complete and clear as to avoid deception or the capacity and tendency to deceive. Any statement of the maximum amount payable is incomplete without disclosing any inside limits which are applicable.

B. Exclusions, Exceptions, Reductions and Limitations:

When an advertisement refers to any dollar amount, period of time for which any benefit is payable, cost of policy, or specific policy benefit or the loss for which such benefit is payable, it shall also disclose those exclusions, exceptions, reductions and limitations affecting the basic provisions of the policy without which the advertisement would have the capacity and tendency to mislead or deceive.

C. Introductory, Initial or Special Offers:

An advertisement shall not state or imply that a particular policy or combination of policies is an introductory, initial or special offer and that the applicant will receive advantages by accepting the offer, unless such is the fact. If the initial premium is different from the renewal premium, both premiums must be clearly shown in close proximity.


02-031 C.M.R. ch. 140, § 3

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