Fla. Admin. Code Ann. R. 69O-150.110 - Testimonials or Endorsements by Third Parties
(1) Testimonials and endorsements used in
advertisements must be genuine, represent the current opinion of the author, be
applicable to the policy advertised and be accurately reproduced. The insurer,
in using a testimonial or endorsement, makes as its own all of the statements
contained therein, and the advertisement, including such statements, is subject
to all the provisions of these rules. When a testimonial or endorsement is used
more than one year after it was originally given, a confirmation must be
obtained.
(2) A person shall be
deemed a "spokesperson" if the person making a testimonial, or endorsement:
(a) Has a financial interest in the insurer
or a related entity as a stockholder, director, officer, employee, or
otherwise; or
(b) Is an entity
formed by the insurer, is owned or controlled by the insurer, its employees, or
the person or persons who own or control the insurer; or
(c) Is in a policy-making position who is
affiliated with the insurer in any of the above described capacities;
or
(d) Is in any way directly or
indirectly compensated for making a testimonial or
endorsement.
(3) Any
person acting as a spokesperson, as defined in the preceding paragraph, who
performs any of the following acts in an advertisement shall be considered
soliciting an insurance product, and such person shall be a licensed insurance
agent pursuant to the Florida Insurance Code:
(a) Solicits insurance or procures
applications; or
(b) Engages or
holds himself out as engaging in the business of analyzing or abstracting
insurance policies; or
(c) Engages
in counseling, advising, or giving opinions to persons relative to insurance
contracts; or
(d) Performs an
invitation to contract, except where performed by a company officer in a manner
which does not violate Section
626.112(4),
F.S.
(4) The fact of a
financial interest or the proprietary or representative capacity of a
spokesperson shall be disclosed in an advertisement and shall be accomplished
in the introductory portion of the testimonial or endorsement in the same form
and with equal prominence thereto. If a spokesperson is directly or indirectly
compensated for making a testimonial, endorsement or appraisal, such fact shall
be disclosed by use of the phrase "Paid Endorsement" or words of similar import
in a type style and size that is at least equal to that used for the
spokesperson's name or the body of the testimonial or endorsement, whichever is
larger. In the case of television or radio advertising, the required disclosure
must be accomplished in the introductory portion of the advertisement and must
be given prominence, and if printed must be presented in a type style and size
that is at least equal to the largest type otherwise used in the advertisement.
The use of the phrase "Paid Endorsement" is not required where the spokesperson
is a company officer who is paid generally but not specifically for making the
advertisement.
(5) The disclosure
requirements of this rule shall not apply where the sole financial interest or
compensation of a spokesperson, for all testimonials or endorsements made on
behalf of the insurer, consists of the payment of union "scale" wages required
by union rules, and if the payment is actually for such "scale" for TV or radio
performances.
(6) An advertisement
shall not state or imply that an insurer or a policy or contract has been
approved or endorsed by any individual, group of individuals, society,
association, organization, governmental agency or other entity, unless such is
the fact, and unless any proprietary relationship between an organization and
the insurer is disclosed. If the entity making the endorsement or testimonial
has been formed by the insurer or is owned or controlled by the insurer, or the
person or persons who own or control the insurer, such fact shall be disclosed
in the advertisement. If the insurer or an officer of the insurer formed or
controls the association, or holds any policy-making position in the
association, that fact must be disclosed.
(7) When a testimonial refers to benefits
received under a policy for a specific claim, the claim data, including claim
number, date of loss, and other pertinent information shall be retained by the
insurer for inspection for a period of four years or until the filing of the
next regular report of examination of the insurer, whichever is the longer
period of time. The use of testimonials which do not correctly reflect the
present practices of the insurer or which are not applicable to the policy or
benefits being advertised is not permissible.
(8) The provisions of subsections (2), (3)
and (4) of this section, shall not apply to a written endorsement which does
not describe specific benefits, coverages or premiums and which is made by an
association of individuals which:
(a) Has been
in existence for more than one year prior to making the written endorsement;
and,
(b) Is formed for purposes
other than soliciting insurance; and,
(c) Has a valid and bona fide governing
constitution and by-laws; and,
(d)
Has as its principal purpose some goal or objective other than providing or
soliciting insurance, as determined by the Insurance Commissioner in accordance
with the procedures and requirements of Chapter 120, F.S., the Administrative
Procedure Act.
Notes
Rulemaking Authority 624.308(1), 626.9611 FS. Law Implemented 624.307(1), 626.051, 626.784, 626.9541(1)(a), (b), (e), (k), (l), 626.9641(1) FS.
New 9-1-73, Formerly 4-35.08, Amended 6-12-88, Formerly 4-35.008, 4-150.110.
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