Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 40.00 - Marketing of insured health plans
Section 40.09 - Testimonials or Endorsements by Third Parties

(1) Testimonials used in marketing methods must be genuine, represent the current opinion of the author, be applicable to the policy marketed and be accurately reproduced or it shall be considered misleading, and therefore prohibited. The carrier, in using a testimonial, makes as its own all of the statements contained therein, and the marketing method, including such statement, is subject to all the provisions of 211 CMR 40.00.

(2) If the person making a testimonial, an endorsement or an appraisal has a financial interest in the carrier or a related entity as a stockholder, director, officer, employee, or otherwise, such fact shall be disclosed in the marketing method or it shall be considered misleading, and therefore prohibited. If a person is compensated for making a testimonial, endorsement or appraisal, such fact shall be disclosed in the marketing method by language substantially as follows: "Paid endorsement." 211 CMR 40.09(2) does not require disclosure of union "scale" wages required by union rules if the payment is actually for such "scale" for TV or radio performances. The payment of substantial amounts, directly or indirectly for "travel and entertainment" for filming or recording of TV or radio advertisements removes the filming or recording from the category of an unsolicited testimonial and requires disclosure of such compensation.

(3) A marketing method shall not state or imply that a carrier or a policy has been approved or endorsed by any individual, group of individuals, society, association or other organizations, unless such is the fact, and unless any proprietary or other financial relationship between an organization and the carrier is disclosed, or it shall be considered misleading, and therefore prohibited. If the entity making the endorsement or testimonial has been formed by the carrier or is owned or controlled by the carrier or the person or persons who own or control the carrier, such fact shall be disclosed in the marketing method or it shall be considered misleading, and therefore prohibited.

(4) In order to assure compliance when a testimonial refers to benefits received under a policy, the specific claim data, including claim number, data of loss, and other pertinent information shall be retained by the carrier for inspection for a period of four years or until the filing of the next regular report on examination of the carrier, whichever is the longer period of time.