Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Common to Life and Health InsuranceMedium
A Florida life insurance advertisement includes a testimonial from a policyholder. Which of the following requirements must be met regarding this testimonial?
- AThe testimonial must be certified by a notary public.
- BThe testimonial must be from a licensed insurance agent.
- CThe advertisement must disclose if the policyholder is compensated.
- DThe testimonial must be from a policyholder who has held their policy for at least 5 years.
Show answer & explanationAnswer & explanation
Correct answer: C. The advertisement must disclose if the policyholder is compensated.
Florida advertising regulations require that if a policyholder provides a testimonial and is compensated for it, this fact must be clearly disclosed in the advertisement. Testimonials must reflect the policyholder's current opinion.
Why the other options are wrong
- A. Notarization is not a standard requirement for testimonials in insurance advertising.
- B. Testimonials can come from any policyholder, not just licensed agents.
- D. There is no specific minimum policyholding period required for a testimonial to be valid.
Insurance Ad Testimonials
Statements by policyholders or consumers used in insurance advertisements, subject to specific regulatory guidelines to ensure accuracy and prevent deception.
- Must reflect current opinion of the person.
- If compensated, compensation must be disclosed.
- Cannot be misleading or imply unfair advantages.
Memory trick: Testimonials need Truth: If they're paid, it must be said!