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-.10 - Testimonials or Endorsements by Third Parties

1. Testimonials used in advertisements must be genuine, represent the current opinion of the author, be applicable to the policy advertised, and be accurately reproduced. The insurer, in using a testimonial, makes as its own all of the statements contained therein, and the advertisement, including such statement, is subject to all the provisions of these Rules.

2. If the person making a testimonial, an endorsement, or an appraisal has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee, or otherwise, such fact shall be prominently disclosed in the advertisement.

3. If a person is compensated for making a testimonial, endorsement or appraisal, such fact shall be prominently disclosed in the advertisement by language identical to, or substantially similar to the following: "THIS IS A PAID ENDORSEMENT." (This Rule does not require disclosure of union scale wages required by union rules if the payment is actually for such scale wages for TV or radio performances). For the purposes of these Rules, the payment of substantial amounts, directly or indirectly, to an endorser for "travel and entertainment" in connection with the filming or recording of TV or radio advertisements constitutes compensation, and disclosure of such compensation is required.

4. An advertisement shall not state or imply that an insurer or a policy has been approved or endorsed by any individual, group of individuals, society, association or other organization, unless such is the fact; and unless any proprietary relationship between an organization and the insurer is clearly, prominently and conspicuously disclosed. If the entity making the endorsement or testimonial has been formed by the insurer, or is owned or controlled by the insurer, or the person or persons who own or control the insurer, such fact shall be disclosed in the advertisement.

5. When a testimonial refers to benefits received under a policy, the specific claim data, including claim number, date of loss, and other pertinent information shall be retained by the insurer for inspection for a period of four years, or until the filing of the next regular report of examination of the insurer, whichever is the longer period of time.

6. For the purposes of these Rules, with regard to testimonials and endorsements by third parties, "Endorser" shall mean any individual, group of individuals, society, association or organization that endorses, approves or recommends an insurer, a policy, or plan of benefits.

7. No such testimonial, endorsement or appraisal shall be made in any form which constitutes a solicitation of insurance in this State, unless such endorser is currently licensed in Georgia to solicit insurance.