State RegulationsVA specificDifficulty 1/5
Under Virginia's rules governing advertisements of life insurance and annuities, what is the baseline standard every advertisement must meet?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Virginia's advertisement rules for life insurance and annuities, adopted under 14 VAC 5-41, require that advertisements be true and not misleading — measured not only by the literal words but by the overall impression the advertisement creates. A promotion that is technically accurate yet conveys a deceptive picture of the policy's cost, benefits, or guarantees fails the standard. This comprehensive standard is what lets the Virginia Bureau of Insurance police marketing that misleads without a literally false sentence in it.
Why the other options are wrong
- A) Pre-approval by named individuals is not the regulatory mechanism; the standard is the truthfulness of the advertisement itself under 14 VAC 5-41.
- C) Reprinting every exclusion is not the baseline test; an advertisement must not mislead as a whole, which is a broader requirement than an exclusions list.
- D) A competitor comparison is not required — and a comparison built on another insurer's figures could itself mislead, violating the same standard.
Memory hook
True in fact, true in effect — the whole impression must be honest, not just the words.