State RegulationsFL specificDifficulty 2/5
Which statement about insurance advertising is correct under Florida law?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Chapter 626, Florida Statutes, insurance advertising must be truthful and not misleading, and the insurer whose product is advertised is responsible for the form and content of its advertisements, including those used by its agents. The Department of Financial Services investigates misleading advertising as an unfair trade practice. Misleading ads can also trigger unfair trade practice penalties against both the insurer and the agent who used them.
Why the other options are wrong
- A) The insurer, not merely the agent, bears responsibility for the form and content of its advertising.
- C) Labeling an exaggeration 'puffery' does not excuse misleading statements about policy terms or benefits.
- D) Florida regulators — the DFS and the Office of Insurance Regulation — actively police insurance advertising; it is not solely a federal matter.
Memory hook
Your ad, your insurer's responsibility.