Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-12 - ADVERTISING ACCIDENT AND SICKNESS INSURANCE
Rule 120-2-12-.06 - Deceptive Words, Phrases or Illustrations Prohibited

1. No advertisement shall omit information or use words, phrases, statements, references or illustrations if the omission of such information or use of such words, phrases, statements, references or illustrations has the capacity, tendency or effect of misleading or deceiving purchasers or prospective purchasers as to the nature or extent of any policy benefit payable, loss covered or premium payable. The fact that the policy offered is made available to a prospective insured for inspection prior to consummation of the sale, and/or offer is made to refund the premium if the purchaser is not satisfied, does not remedy misleading statements.

2. No advertisement shall state or imply that all costs of hospitalization or medical expense will be paid, or that all income will be replaced by benefits, unless the policy is without limitation or restriction in any form. No advertisement shall contain or use words or phrases such as: "all;" "full;" "complete;" "comprehensive;" "liberal;" "unlimited;" "as high as;" "fills all gaps;" "full coverage;" "complete protection;" "all coverage;" "deductibles covered;" "this policy will help pay your hospital and surgical bill;" "this policy will help fill some of the gaps that Medicare and your present insurance leave out;" "this policy will help to replace your income" (when used to express loss of time benefits); "salary replacement;" "wage continuation;" or similar words and phrases, to imply generosity or liberality or in a manner which exaggerates any benefits beyond the terms of the policy.

3. No advertisement shall contain descriptions of a policy limitation, exception, or reduction worded in a positive manner to imply that it is a benefit, such as: describing a waiting period as a "benefit builder," or stating "even pre-existing conditions are covered after two years."

4. No advertisement shall contain or use identifying terms, words, or phrases which do not correctly identify the policy. (See Rule 120-2-12-.05(6).)

5. No advertisement of a benefit for which payment is conditional upon the incurrence of any medical expenses shall use words or phrases such as "tax free;" "extra cash;" "extra income;" "extra pay;" or substantially similar words or phrases that might have the capacity, tendency or effect of misleading the public into believing that the policy advertised will, in some way, enable them to make a profit from any illness, injury, condition, or confinement in a hospital or similar facility.

6. No advertisement of a hospital or other similar facility confinement benefit shall advertise that the amount of benefit is payable on a monthly or weekly basis when, in fact, the amount of the benefit payable is based upon a daily pro rata basis relating to the number of days of actual confinement.

7. No advertisement of a policy covering only one disease or list of specified diseases shall imply coverage beyond the terms of the policy. Synonymous terms shall not be used to refer to any disease so as to imply broader coverage than is the fact.

8. An advertisement or a direct response insurance product shall not state or imply that because "no insurance agent will call and no commissions will be paid to agents," that it is a "low cost plan," or use other similar words or phrases.

9. No advertisement shall contain or use any statement relating to time within which claims are paid (within 24 to 48 hours, etc.), unless the policy being advertised actually requires and guarantees payment within such designated period.

10. No advertisement shall imply that a company frequently and routinely pays specified sums for any type of accident or sickness when, in fact, only certain specified accidents or illnesses are covered.