Ill. Admin. Code tit. 50, pt. 2002, app A, ILLUSTRATION Z

Current through Register Vol. 48, No. 50, December 13, 2024

Guideline to Section 2002.100(a)

a) This Section 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 does not relate to the policy being advertised.

b) 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.

c) An advertisement which states the dollar amount of claims paid must also indicate the period over which such claims have been paid. The total dollar amount of claims paid must not be overemphasized.

d) If the term "loss ratio" is used, it shall be properly explained in the context of the advertisement, and it shall be calculated on the basis of premiums earned to losses incurred and shall not be on a yearly run-off basis.

Ill. Admin. Code tit. 50, pt. 2002, app A, ILLUSTRATION Z