Section 2002.APPENDIX A   Guidelines

Section 2002.ILLUSTRATION J   Guideline to Section 2002.70(a)(2)

a)         This Section recognizes that certain words and phrases in advertising may have a tendency to mislead the public as to the extent of benefits under an advertised policy.  Consequently, such terms (and those specified in this Part do not represent a comprehensive list but only examples) must be used with caution to avoid any tendency to exaggerate benefits and must not be used unless the statement is literally true in every instance.  The use of the following phrases based on such terms or having the same effect must be similarly restricted:  "pays hospital, surgical, etc., bills," "pays dollars to offset the cost of medical care," "safeguards your standard of living," "pays full coverage," "pays complete coverage," "pays for financial needs," "provides for replacement of your lost paycheck," "replaces income" or "emergency paycheck."  Other phrases may or may not be acceptable depending upon the nature of the coverage being advertised.  For example, the phrase "this policy will help to replace your income" is acceptable in advertising for loss of time coverage, but is unacceptable in advertising for hospital confinement (including "hospital indemnity") coverage.

b)         This Section also prohibits words or phrases which exaggerate the effect of a benefit payment on the insured's general well-being, such as "worry-free savings plan," "guaranteed savings," "financial peace of mind" and "you will never have to worry about hospital bills again."

c)         Advertisements for policies designed to supplement Medicare benefits are unacceptable if they fail to disclose that no hospital confinement benefits will be payable for that portion of a Medicare benefit period for which Medicare pays all hospital confinement expenses, currently 60 days, other than the initial deductible if the policy so provides.  The length of said period must be stated in days.