California Life-Only & Accident and Health AgentCalifornia Law - GeneralMedium
A newly licensed life-only agent in California is preparing their first advertisement to be distributed to potential clients. According to California regulations, which of the following statements about their advertisement is TRUE?
- AThe advertisement must include the agent's residential address and phone number.
- BThe advertisement is not required to include the agent's name if it includes the insurer's name.
- CThe advertisement must clearly state the agent's license number.
- DThe advertisement can imply that the agent is an employee of the state if it mentions 'California Licensed Agent'.
Show answer & explanationAnswer & explanation
Correct answer: C. The advertisement must clearly state the agent's license number.
California Insurance Code Section 1725.5 requires that every licensee shall prominently print their license number on all advertisements, stationery, business cards, and price quotations.
Why the other options are wrong
- A. Residential addresses are generally not required and often not desired for advertising, business addresses are more common.
- B. The agent's name is crucial for identification; relying solely on the insurer's name is insufficient.
- D. It is an unfair trade practice to imply government endorsement or affiliation; 'California Licensed Agent' refers to the license type, not employment by the state.
Agent Advertising Requirements (CA)
California law mandates specific disclosures and practices for insurance agent advertisements to ensure transparency and prevent deception.
- License number must be displayed.
- Must not be misleading or deceptive.
- Business name must be clear if different from licensee's name.
Memory trick: For ads, your license number's a must, building client's trust.