State RegulationsGA specificDifficulty 2/5
A Georgia insurer's illustration implies that the Insurance Commissioner has approved the policy illustration. Under Reg. 120-2-11-.10, this is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Reg. 120-2-11-.10, advertisements may not imply that a policy or illustration has been approved or endorsed by the Insurance Department. The same rule also bars implying benefits not contained in the policy, implying stockholder-type ownership or profits, and using dividend projections that do not comply with the regulation — all of which protect applicants from state-sponsored endorsements that do not exist.
Why the other options are wrong
- B) Merely submitting an illustration to the Department confers no approval that may be advertised; implying endorsement remains prohibited.
- C) No advertisement is required to claim Department approval; the rule forbids such implications rather than mandating them.
- D) A disclaimer that approval is pending does not cure the prohibited implication of Department endorsement.
Memory hook
The Department regulates — it never endorses your illustration.