“GROUND ZERO” FOR INSURANCE ADVERTISING LAW
Although many insurance advertising regulations exist on the state level, most of these rules apply to life, annuity and health insurance products. Property/casualty insurers have very little to be concerned with in this area. Conversations with advertising reviewers for P/C advertising indicate they mostly rely on “not misleading” guidelines of the states’ Unfair Trade Practices acts. Some additional discussion of the basis for advertising law may be helpful. Although other insurers have numerous laws to follow for general advertising, all insurers might want to review the notes on internet advertising at the end of this article.
DIRECTIONS FROM THE FTC
One of the main regulators of all types of business advertising is the Federal Trade Commission (FTC). Under the primary Act, the FTC indicates that advertising in general must
1. Be truthful (not deceptive)
2. Be provable
3. Be fair