State RegulationsTX specificDifficulty 1/5
Under the Texas advertising rules at 28 TAC 21.104-.105 and 21.111, which statement about an advertisement for a Texas life insurance policy is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Texas advertising rules at 28 TAC 21.104-.105 and 21.111, an advertisement for a life insurance policy must be truthful and not misleading and may not misrepresent the benefits, advantages or terms of the policy. Describing cash values as an investment return, or comparing a policy to a bank deposit without qualification, misrepresents a life insurance product and is prohibited; identifying the insurer is part of a truthful advertisement.
Why the other options are wrong
- A) Adding a disclosure does not make it permissible to characterize a life policy's cash values as an investment return; the advertisement must not misrepresent the product.
- C) An unqualified comparison to a bank deposit misrepresents a life insurance policy and is not permitted.
- D) Institutional advertisements remain subject to the advertising rules and must not be misleading about the product or the insurer.
Memory hook
Advertising rule of thumb: truthful, not misleading, no investment-speak.