Cal. Code Regs. tit. 10 § 2536.5
GUIDELINE 2536.5(a)
This Subsection prohibits the use of statistics in a manner which is misleading and deceptive. It requires the disclosure of all relevant facts and prohibits the use of irrelevant facts. An advertisement shall specifically identify the policy to which statistics relate and, where statistics are given which are applicable to a different policy, it must be stated clearly that the data do not relate to the policy being advertised.
Statistics which describe the insurer, such as assets, corporate structure, financial standing, age, product lines or relative position in the insurance business, may be irrelevant and, if used at all, must be used with extreme caution because of their potential for misleading the public. As a specific example, an advertisement for a health insurance policy which refers to the amount of life insurance which the company has in force or the amounts paid out in life insurance benefits is not permissible unless the advertisement clearly indicates the amount paid out for each line of insurance.
An advertisement which states the dollar amount of claims paid must also indicate the period over which such claims have been paid.
If the term "loss ratio" is used, it shall be properly explained in the context of the advertisement and, unless a regulation is subsequently issued otherwise defining the term, it shall be calculated on the basis of premiums earned to losses incurred and shall not be on a yearly run-off basis.
GUIDELINES 2536.5(b)
This Subsection prohibits deceptive or misleading statements in an advertisement regarding an insurer's claim settlement practices. It also prohibits the use of an unusual amount paid for a unique claim or an unusual claim whether actual or hypothetical.
GUIDELINE 2536.5(c)
This Subsection requires any advertisement which uses statistics to cite the source. The rule does not require that statistics for this State be used since such statistics as hospital charges and average stays may vary from state to state. When nationwide statistics are used such fact should be noted as such unless the statistics on the particular point are substantially the same as those for this State. Statistics may be used only if they are credible.
Cal. Code Regs. Tit. 10, § 2536.5