N.J. Admin. Code § 11:2-11.6
Current through Register Vol. 56, No. 11, June 3, 2024
Section 11:2-11.6 - Endorsements by third parties(a) Endorsements used in advertisements shall be genuine, represent the current opinion of the author, be applicable to the policy advertised and be accurately reproduced. The insurer, in using an endorsement, adopts as its own all of the statements contained therein, and the advertisement, including such statements, shall be subject to all of the provisions of this subchapter.(b) A person shall be a "spokesperson" if either his or her image, voice or words are used in making an endorsement and if the person: 1. Has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee or otherwise;2. Is an entity formed by the insurer, or is owned or controlled by the insurer, its employees, or the person or persons who own or control the insurer;3. Is in a policymaking position and is affiliated with the insurer in any of the capacities in (b)1 or 2 above; or4. Is in any way directly or indirectly compensated for making the endorsement.(c) Any person acting as a spokesperson as defined in (b) above, who transacts the business of or holds himself or herself out to the public as being an insurance producer as defined at 17:22A-28, and who is required to have a license pursuant to 17:22A-29, shall be considered to be an insurance producer and shall be required to be licensed pursuant to and shall submit to the requirements of 17:22A-26 et seq. and any implementing rules.(d) Where, pursuant to (c) above, a spokesperson required to be licensed as an insurance producer is not licensed as an insurance producer, the advertisement shall include, in the manner prescribed by (e) below, the following statement: "This offer is not available in New Jersey." The requirements of this subsection shall apply to cases where the advertisement originates in or emanates from another state but is received or appears in New Jersey, and to advertisements which originate in or emanate from New Jersey.(e) The fact of a financial interest, or the proprietary or representative capacity of a spokesperson, shall be disclosed in an advertisement. In both television and radio advertising the disclosure shall be spoken by the spokesperson and, in the case of television, visually presented consistent with the requirements for print advertising in this subsection. In print advertising, the disclosure shall be presented in a type style and size that is at least equal to the largest type otherwise used in the advertisement. The disclosure required by this subsection shall be accomplished in the introductory portion of the endorsement and shall be given prominence.(f) If a spokesperson is directly or indirectly compensated for making an endorsement, such fact shall be disclosed by use of the phrase "This is a Paid Endorsement" or by words of similar meaning, in the manner provided by (e) above. The requirements of this subsection do not apply where the spokesperson is a company officer, a company director or an employee who is paid generally, but not specifically, for making the advertisement.(g) The disclosure requirements in (e) and (f) above shall not apply where the sole financial interest or compensation of a spokesperson, for all endorsements made on behalf of the insurer, consists of the payment of union "scale" wages required by union rules, and if the payment is actually for such "scale" for television or radio performances.(h) An advertisement shall not state or imply that an insurer, a policy or contract, or any type or line of insurance has been approved or endorsed by any individual, group of individuals, society, association, organization, governmental agency or other entity, unless such is the fact and any proprietary relationship between such individual(s) or entity and the insurer is disclosed and the prior written approval of the individual, group of individuals, society, association, organization, governmental agency or other entity has been secured. Prior written approval shall not be required in cases where the endorsing individual is a company officer, company director or an employee.(i) If the person making the endorsement in (h) above has been formed by the insurer or is owned or controlled by the insurer, or the person or persons who own or control the insurer, such fact shall be disclosed in the advertisement. If the insurer or an officer of the insurer formed or controls the association, or holds any policymaking position in the association, that fact shall also be disclosed.(j) When an endorsement refers to benefits received under a policy for a specific claim, the claim date, including claim number, date of loss and other pertinent information shall be retained by the insurer for inspection until the completion by the Department of Banking and Insurance of the next market conduct examination of the insurer.(k) Endorsements which do not correctly reflect the present practices of the insurer or which are not applicable to the policy or benefits being advertised shall not be used.(l) Endorsements concerning Medicare supplement insurance shall be filed with the Office of Life and Health of the Department of Banking and Insurance at least 30 days prior to their first use. Radio and television endorsements shall be filed in transcribed form.(m) An advertisement shall not state or imply that an insurer or a policy has been approved or an insurer's financial condition has been examined and found to be satisfactory by a governmental agency unless such is the fact and without prior written approval.N.J. Admin. Code § 11:2-11.6
Repealed and replaced by R.1989 d.391, effective 7/17/1989.
See: 21 New Jersey Register 970(a), 21 New Jersey Register 2039(a), 21 New Jersey Register 2289(c).
Section formerly entitled "testimonials"; new rule greatly expanded the regulation of third party endorsements.
Amended by R.2001 d.6, effective 1/2/2001.
See: 32 New Jersey Register 3530(a), 33 New Jersey Register 85(a).
In (j) and ( l), added "Banking and" to the Department name; and in ( l) substituted "Office" for "Division".
Amended by R.2005 d.350, effective 10/17/2005.
See: 37 New Jersey Register 2285(a), 37 New Jersey Register 4026(a).
In (c), substituted "N.J.S.A. 17:22A-28" for "N.J.S.A. 17:22A-2", "N.J.S.A. 17:22A-29" for "N.J.S.A. 17:22A-3", and "N.J.S.A. 17:22A-26 et seq." for "N.J.S.A. 17:22A-1 et seq.".