An advertisement for a life insurance policy sold in Georgia tells readers that as a policyholder they will own stock in the insurer and share in its profits. Under Georgia's advertising regulation, what is the status of this advertisement?

Why B is correct

Under Reg. 120-2-11-.10, a life insurance advertisement may not imply that the purchaser acquires stockholder-type ownership in, or stockholder-type profits of, the insurer. Buying a life policy does not make the owner a shareholder, so an ad that suggests the policy carries equity in the company misrepresents the nature of the contract and violates the regulation regardless of the insurer's corporate form.

Why the other options are wrong

• A) Even a stock insurer may not imply that policyholders acquire shareholder ownership or profits; the prohibition attaches to the misleading implication, not to the insurer's corporate structure.
• C) The rule does not flip between mutual and stock companies — neither may suggest that a policy confers stockholder equity.
• D) Where the advertisement is printed is irrelevant; the regulation governs advertisements used in Georgia and their misleading content.

Memory hook

A policy is not a share: no stock-ownership or profit claims in ads.

Why A is correct

Under Reg. 120-2-11-.05, advertisements may not use the words 'investment,' 'profit,' 'deposit,' 'savings,' 'savings plan,' or 'investment plan' in any context that misleads the public about the true nature of the policy. A life policy marketed as a 'savings plan' mischaracterizes the product, so this term is expressly controlled. Producers should describe actual policy features instead of borrowing banking vocabulary.

Why the other options are wrong

• B) Describing the death benefit protection a policy provides is an accurate statement of a real policy feature, not a misleading characterization.
• C) A premium payment schedule describes how premiums are paid and misrepresents nothing about the policy's nature.
• D) Policy loan availability is a genuine life policy feature and does not mislead about the product's insurance character.

Memory hook

Bank words - savings, investment, profit, deposit - stay out of policy ads.

Why D is correct

Under Reg. 120-2-11-.05, Georgia maintains a verbatim prohibited-terms list for life advertisements: 'investment', 'profit', 'deposit', 'savings', 'savings plan' and 'investment plan' may not be used in a context that misleads about the nature of the policy. 'Savings plan' is on the list because it suggests a deposit-like banking product rather than an insurance contract.

Why the other options are wrong

• A) 'Affordable' is not on the enumerated prohibited-terms list, though the ad still must not be misleading overall.
• B) 'Protected' is not on the enumerated prohibited-terms list.
• C) 'Guaranteed' is standard policy terminology and is not on the list when used accurately for actual policy guarantees.

Memory hook

Savings, deposit, profit, investment — off the ad page.