Current through Register Vol. 56, No. 18, September 16, 2024
(a) Consistent
with the unfair trade practices set forth in
17B:30-1 et seq., an insurance
producer, or an agent, representative or member of a fraternal benefit society
not required to be licensed as an insurance producer in accordance with
17:44B-32, or an insurer, if no
producer or non-licensed society agent, representative or member is involved,
shall not use a certification, professional designation, or form of advertising
expressing or implying in an untrue, deceptive, misleading, or false manner
that the producer, non-licensed society agent, representative or member, or
insurer has special education, training, or experience in advising or servicing
senior citizens or retirees in connection with the solicitation, negotiation,
or sale of life insurance, or its value or suitability, either directly or
indirectly, including through a publication or writing, or by issuing or
promulgating an analysis or report relating to a life insurance
policy.
(b) The provisions of (a)
above shall not apply to:
1. A title or
designation conferred through an academic degree, certifying the completion of
a course of study from an accredited institution of higher education, so long
as the title or designation is not used in an untrue, deceptive, misleading, or
false manner in connection with the solicitation, negotiation, or sale of a
life insurance policy; or
2. A
professional job title presented by an employer or other organization that is
licensed or registered by a state or Federal financial services regulatory
agency, including any agency that regulates financial institutions, insurers,
investment companies as defined under the Investment Company Act of 1940, Title
I of Pub. L. 76-768 (
15 U.S.C. §§
80a-1 et seq.), investment advisers as
defined under the Investment Advisers Act of 1940, Title II of Pub. L. 76-768 (
15
U.S.C. §§
80b-1 et seq.), and
broker-dealers, and that indicates seniority or standing within the employer or
other organization's operation or specifies an area of specialization
recognized by that employer or other organization, so long as the professional
job title is not used in an untrue, deceptive, misleading, or false manner in
connection with the solicitation, negotiation, or sale of a life insurance
policy.
(c) For purposes
of this subchapter, an untrue, deceptive, misleading, or false use of a
certification, designation, or form of advertising shall include, but shall not
be not limited to:
1. The use of a
certification or professional designation not actually earned or otherwise
available for use;
2. The use of a
nonexistent or self-conferred certification or professional
designation;
3. The use of a
certification or professional designation that expresses or implies a level of
occupational qualification obtained through education, training, or experience,
but which is not actually obtained; and
4. The use of a certification or professional
designation obtained from a certifying or designating organization that:
i. Is primarily engaged in the business of
instruction in sales or marketing;
ii. Does not have reasonable standards or
procedures for assuring the competency of a holder of its certificate or
professional designation;
iii. Does
not have reasonable standards or procedures for monitoring and disciplining a
holder of its certificate or professional designation for improper or unethical
conduct; or
iv. Does not have
reasonable continuing education requirements for a holder of its certificate or
professional designation in order to maintain the certification or
designation.
(d) Notwithstanding (c) above, there shall be
a rebuttable presumption that the use of a certification or professional
designation obtained from a certifying or designating organization is not in
violation of this section if the certificate or professional designation issued
to the holder does not apply primarily to sales or marketing and is accredited
by:
1. The American National Standards
Institute, or its successor;
2. The
National Commission for Certifying Agencies, or its successor;
3. Any organization recognized as an
accrediting agency by the United States Department of Education pursuant to
section 496 of the Higher Education Act of 1965, Pub. L. 89-329 (
20 U.S.C. §
1099b); or
4. Any other organization approved by the
Commissioner by regulation.
(e) In order to determine a violation of this
subchapter, the Commissioner may consider the use of one or more words,
combination of words, or acronyms representing these words, and the manner or
context of their use with respect to a certification, professional designation,
or form of advertising, including, but not limited to, "senior," "retirement,"
"elder" or words of similar import, "certified," "registered," "chartered" or
words of similar import, and "adviser," "specialist," "consultant," "planner"
or words of similar import.
