Utah Admin. Code R590-130-8 - Testimonials or Endorsements by Third Parties

(1) A person making a testimonial or endorsement is a spokesperson if the person:

(a) has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee, or otherwise;

(b) has been formed by the insurer;

(c) is owned or controlled by the insurer, the insurer's employees, or a person that owns or controls the insurer;

(d) has a person in a policy making position that is affiliated with the insurer in a capacity described in Subsections (1)(a) through (1)(c); or

(e) is directly or indirectly compensated for making a testimonial or endorsement.

(2)

(a) A testimonial or endorsement in an advertisement shall disclose in the introductory portion, in the same form and with equal prominence in the advertisement, that a spokesperson has the following interest or capacity in the insurer making the advertisement:

(i) a financial interest;

(ii) a proprietary interest; or

(iii) a representative capacity.

(b) An advertisement shall disclose if the spokesperson was directly or indirectly paid for making a testimonial or endorsement.

(c) The disclosure in Subsection (2)(b) may be fulfilled by:

(i) using the phrase "Paid Endorsement" or words substantially similar; and

(ii) using a font and size at least equal to the font and size for whichever of the following is larger:

(A) the spokesperson's name; or

(B) the body of the testimonial or endorsement.

(d) A testimonial or endorsement disclosure for a non-print advertisement shall:

(i) make the disclosure in the advertisement's introductory portion; and

(ii) be given equal prominence in the advertisement.

(3)

(a) An advertisement may not state or imply that an individual, group of individuals, society, association, or other organization has approved or endorsed an insurer or an insurance policy unless:

(i) the individual, group of individuals, society, association, or other organization has approved or endorsed the insurer or the insurance policy; and

(ii) the advertisement discloses any proprietary relationship between an organization and the insurer.

(b) An advertisement shall disclose, if applicable, the following regarding an entity making an endorsement or testimonial:

(i) the insurer formed the entity;

(ii) the insurer owns the entity;

(iii) the insurer controls the entity; or

(iv) a person that owns or controls the insurer formed, owns, or controls the entity.

(c) If the entity in Subsection (3)(a) is an association, the advertisement must disclose, if applicable, the following regarding an insurer:

(i) the insurer or the insurer's officer formed or controls the association; or

(ii) the insurer or the insurer's officer holds a policy making position in the association.

(4)

(a) An insurer using a testimonial that refers to a benefit received under an insurance policy must retain for three years beginning when the insurer last used the testimonial in an advertisement:

(i) the specific claim data, including claim number;

(ii) the date of loss; and

(ii) any other pertinent information.

(b) A testimonial in an advertisement is prohibited if:

(i) the testimonial does not correctly reflect the insurer's present practice; or

(ii) the testimonial is not applicable to the advertised policy or benefit.

(5)

(a) An advertisement may not imply that a state or federal agency or division has granted approval, accreditation, or endorsed an insurer's policy forms or advertisement.

(b) An insurer may not use the approval or filing of a policy form or advertisement to state or imply that a governmental agency has endorsed or recommended the following:

(i) the insurer;

(ii) the insurer's policy;

(iii) the insurer's advertisement; or

(iv) the insurer's financial condition.

Notes

Utah Admin. Code R590-130-8

Adopted by Utah State Bulletin Number 2022-24, effective 12/8/2022