Section R590-222-11 - Advertisement(1) The form and content of an advertisement of a life settlement shall be complete and clear to avoid misleading or deceiving the reader, viewer, or listener.(2) An advertisement may not contain false or misleading information, including information that is false or misleading because it is incomplete.(3) Information required to be disclosed may not be minimized, rendered obscure, or presented in an ambiguous fashion or intermingled with the text of the advertisement to be confusing or misleading.(4) An advertisement may not omit material information or use words, phrases, statements, references, or illustrations if the omission or use has the capacity, tendency, or effect of misleading or deceiving owners as to the nature or extent of any benefit, loss covered, premium payable, or state or federal tax consequence.(5) An advertisement may not use the name or title of an insurer or an insurance policy unless the affected insurer approves the advertisement.(6) An advertisement may not state or imply that interest charged on an accelerated death benefit or a policy loan is unfair, inequitable, or in any manner an incorrect or improper practice.(7) The words "free," "no cost," "without cost," "no additional cost", "at no extra cost," or words of similar meaning may not be used regarding any benefit or service unless the statement is true.(8) An advertisement may specify the charge for a benefit or a service or may state that a charge is included in the payment or use other appropriate language.(9)(a) Testimonials, appraisals or analysis used in an advertisement shall: (ii) represent the current opinion of the author;(iii) apply to the life settlement product or service advertised; and(iv) be accurately reproduced to avoid misleading or deceiving prospective owners as to the nature or scope of the testimonials, appraisal, analysis, or endorsement.(b) When using testimonials, appraisals, or analysis, the statements become the statements of the life settlement licensee and are subject to this Section R590-222-11.(c) If an individual making a testimonial, appraisal, analysis, or endorsement has a financial interest in the party using the testimonial, appraisal, analysis, or endorsement, either directly or through a related entity as a stockholder, director, officer, employee, or otherwise, or receives any benefit directly or indirectly other than required union scale wages, that fact shall be prominently disclosed in the advertisement.(d)(i) An advertisement may not state or imply that a life settlement benefit or service is approved or endorsed by a group of individuals, society, association, or other organization unless: (A) it is a factual statement; and(B) a relationship between an organization and the life settlement licensee is disclosed.(ii) If the entity making the endorsement or testimonial is owned, controlled, or managed by the life settlement licensee, or receives any payment or other consideration from the life settlement licensee for making an endorsement or testimonial, that information shall be disclosed in the advertisement.(e) When an endorsement refers to benefits received under a life settlement, all pertinent information shall be retained for a period of five years after its use.(9) An advertisement may not contain statistical information unless it accurately reflects recent and relevant facts and identifies the source of all statistics used in an advertisement.(10) An advertisement may not disparage insurers, life settlement providers, life settlement producers, life settlement investment agents, anyone who may recommend a life settlement, insurance producers, policies, services, or methods of marketing.(11)(a) The name of a life settlement licensee shall be clearly identified in all advertisements about the licensee or its life settlement products or services, and, if any specific life settlement is advertised, the life settlement shall be identified either by form number or another appropriate description.(b) If an application is part of the advertisement, the name and business address of the life settlement provider shall be shown on the application.(12) An advertisement may not use a trade name, group designation, name of a parent company of a life settlement licensee, name of a particular division of a life settlement licensee, service mark, slogan, symbol, or other device or reference without disclosing the name of the life settlement licensee if the advertisement has the capacity or tendency to mislead or deceive as to the true identity of the life settlement licensee, or to create the impression that a company other than the life settlement licensee has any responsibility for the financial obligation under a life settlement.(13) An advertisement may not use any combination of words, symbols, or physical materials that by their content, phraseology, shape, color, or other characteristics are so similar to a combination of words, symbols, or physical materials used by a government program or agency or otherwise appear to be of such a nature that they tend to mislead prospective owners into believing that the solicitation is in some manner connected with a government program or agency.(14)(a) An advertisement may state that a life settlement licensee is licensed in the state where the advertisement appears, provided it does not exaggerate that fact or suggest or imply that a competing life settlement licensee may not be so licensed.(b) The advertisement may ask the audience to consult the licensee's web site or contact the department to find out if the state requires licensing and, if so, whether the life settlement provider or life settlement producer is licensed.(15) An advertisement may not create the impression that the life settlement provider, its financial condition or status, the payment of its claims, or the merits, desirability, or advisability of its life settlements are recommended or endorsed by any government entity.(16)(a) The name of the actual licensee shall be stated in its advertisements.(b) An advertisement may not use a trade name, a group designation, name of an affiliate or controlling entity of the licensee, service mark, slogan, symbol, or other device in a manner that has the capacity or tendency to mislead or deceive as to the true identity of the actual licensee or create the false impression that an affiliate or controlling entity has any responsibility for the financial obligation of the licensee.(17) An advertisement may not, directly or indirectly, create the impression that any division or agency of the state or of the U.S. government endorses, approves, or favors: (a) a life settlement licensee, its business practices, or methods of operations;(b) the merits, desirability, or advisability of a life settlement;(c) a life settlement; or(d) a life insurance policy or life insurer.(18) If an advertisement emphasizes the speed with which a settlement will occur, the advertisement shall disclose the average time frame from completed application to the date of offer and from acceptance of the offer to receipt of the funds by the owner.(19) If an advertisement emphasizes the dollar amounts available to owners, the advertisement shall disclose the average purchase price as a percent of face value obtained by owners contracting with the licensee during the past six months.Utah Admin. Code R590-222-11
Amended by Utah State Bulletin Number 2023-15, effective 7/25/2023