Rule 120-2-12-.17 - Introductory, Initial or Special Offers1.(a) An advertisement of an individual policy shall not directly or by implication represent that a contract or combination of contracts is an introductory, initial, or special offer, or that applicants will receive substantial advantages not available at a later date, or that the offer is available only to a specified group of individuals, unless such is the fact.(b) An advertisement shall not contain phrases describing an enrollment period as "special," "limited," or use in similar words or phrases when the insurer uses such enrollment periods as the usual method of advertising accident and sickness insurance.(c) An enrollment period during which a particular insurance product may be purchased on an individual basis shall not be offered within this State unless there has been a lapse of not less than six (6) months between the close of the immediately preceding enrollment period for the same product and the opening of the new enrollment period.(d) The advertisement shall indicate the date by which the applicant must mail the application, which shall not be less than ten (10) days and not more than forty (40) days from the date that such enrollment period is advertised for the first time. This Rule applies to all advertising media; including, but not limited to: mail, newspapers, radio, television, magazines, periodicals, personal solicitations, and telephone solicitations.(e) This Rule prohibits any statement or implication to the effect that only a specific number of policies will be sold, or that a time is fixed for the discontinuance of the sale of the particular policy advertised because of special advantages available in the policy, unless such is the fact.(f) This Rule prohibits the use of minor variations in the form or contents of a plan or policy in order to avoid or circumvent the provisions of paragraph (c) of this Rule. Mere variations of the terms of renewability, increases or decreases in the dollar amounts of benefits, or increases or decreases in any elimination or waiting period from those available during an enrollment period for another policy, shall not be sufficient to establish it as a new or different "particular insurance product" not subject to the provisions of paragraph (c).2. An advertisement shall not offer a policy which utilizes a reduced initial premium rate in a manner which over-emphasizes the availability and the amount of the initial reduced premium. When an insurer charges an initial premium that differs in amount from the amount of the renewal premium payable on the same mode, the advertisement shall not display the amount of the reduced initial premium either more frequently or more prominently than the renewal premium, and both the initial reduced premium and the renewal premium must be stated in juxtaposition in each portion of the advertisement where the initial reduced premium appears.3. Special awards, such as a "safe drivers' award," or special classes such as "non-drinkers" or "non-smokers" shall not be used in connection with advertisements of accident or accident and sickness insurance, unless premiums are, in fact, reduced on the basis of statistical information showing reduced risk based on membership in such class. Such statistics shall be on file in the Home or Principal Office of the insurer.Ga. Comp. R. & Regs. R. 120-2-12-.17
Ga. L. 1960, pp. 289 to 755.
Original Rule entitled "Limited Benefits and Policies Not to Be Advertised as Comprehensive" adopted. F. and eff. July 20, 1965.Repealed: New Rule entitled "Introductory, Initial or Special Offers" adopted. F. May 29, 1973; eff. June 18, 1973.Submitted for Publishing: Mar. 7, 2007.