Section 2002.APPENDIX A   Guidelines

Section 2002.ILLUSTRATION W   Guideline to Section 2002.90(b)

a)         This Section requires the disclosure of any financial interest of a person making a testimonial, endorsement or appraisal.  Any payment, direct or indirect, whether specifically for the testimonial or endorsement or for any other services or relationship, is required to be disclosed.  Reimbursement for substantial travel and entertainment expenses is also required to be disclosed; however, union scale wages required by union rules are not required to be disclosed.  Travel away from the home of the person giving the testimonial or endorsement to a distant location involving transportation expenses, lodging expenses or expenses for meals constitutes payment and must be reflected as a paid endorsement.  The requirement of disclosure may be fulfilled by use of the phrase "Paid Endorsement" or words of similar import in a type style and size that is identical to the endorser's name.  In the case of television or radio advertising, the paid nature of the advertisement must be given prominence.

b)         The word "person," as used in this subsection, includes a human person, body of persons or any legal entity recognized by law as the subject of rights and duties.

c)         A person making an endorsement cannot comment upon his evaluation either of the merits of an administrative process of a company or of the value of the insurance product unless he has adequate experience within the area he is evaluating.  In the absence of such experience, either the level of expertise of the person or the relevant facts forming the basis for such an endorsement must be disclosed.