Protective Life is dedicated to providing quality service, building trust and simplifying everything for you and our mutual customers. As part of that effort, we want to ensure you stay informed and compliant regarding regulations within our industry. Please review the following reminders about state regulations that affect marketing and advertising of life insurance and annuity products.
NAIC model regulation
The Advertisements of Life Insurance and Annuities Model Regulation (NAIC 570-1) provides rules for life insurance and annuity advertising. Among other things, these rules require a system of control over the content, form and method of dissemination of all advertisements. The majority of states have adopted the NAIC Model Regulation or a variation of it. A link to the complete Regulation, which provides detailed information regarding the rules for different advertising scenarios, can be found here.
In order to comply with this Regulation, any advertising or marketing material referring to Protective – the Company name, logo, products or services – must be approved by the insurer prior to its dissemination. Therefore, these materials must be submitted to Protective’s Advertising Compliance Department and receive written approval prior to first use. Anyone that violates any provisions of this Regulation, or knowingly participates in such violation shall be subject to a fine up to $1,000 for each violation, as well as potential suspension or revocation of their insurance licensing agreement.
Insurance advertising is highly regulated with guidelines that differ from state to state. It is essential that all sales materials and communications clearly communicate to the customer by disclosing proper information and that these materials are based on the principle of good faith and fair dealing. Impacted materials include, without limitation, print media, internet, computer or electronic demonstrations or illustrations, radio, television, etc. Also, note that urging a customer to purchase or modify a policy through prospecting letters, form letters and internet websites is also considered advertising.
You can find more information about our advertising and sales materials policy and our approval process on the Advisor website at myprotective.com.
If you have any questions about the information provided in this bulletin, please contact Luke McCreless, AVP of Compliance, at firstname.lastname@example.org or 205-268-5202.
We look forward to helping you meet the protection needs of our mutual customers.
Let’s deliver on our promises. Together.