Section 0780-01-33-.06 - UNFAIR METHODS OF COMPETITION(1) Making any statement relating to the growth of the life insurance industry or to the tax status of life insurance companies in a context which would reasonably be understood to interest a prospect in the purchase of shares of stock in an insurance company rather than in the purchase of a life insurance policy.(2) Making any statement which reasonably gives rise to the inference that the insured will enjoy a status common to a stockholder or will acquire a stock ownership interest in the insurance company by virtue of purchasing the policy.(3) Providing a policyholder with any premium receipt book, policy jacket, return envelope, or other printed material containing references to the company's "Investment Department," "Insured Investment Department," or similar terminology, in such a manner as to imply that the policy was sold or issued or is serviced by the investment department of the insurance company.(4) Stating that each stockholder is given the right to purchase or allocate a specific number of policies.(5) Stating that policyholders who act as "centers of influence" for an insurance company in that capacity will share in the company's surplus earnings in some manner not available to other policyholders of the same class.(6) Stating or implying that the principal amounts payable under coupons represent interest, earnings, return on investment, or anything other than policy benefits, the cost of which is included in the total premium.(7) Describing premium payments in language which states the payment is a "deposit", unless:(a) the payment establishes a debtor-creditor relationship between the insurance company and policyholder; or(b) the term is used in conjunction with the word "premium" in such manner as to clearly indicate the true character of the payment.(8) Including in sales kits and prepared sales presentations proposed answers to a prospect's question as to whether life insurance is being sold, which are designed to avoid a clear and unequivocal statement that life insurance is the subject matter of the solicitation.(9) Stating that an insured is guaranteed certain benefits if the policy is allowed to lapse, without making an adequate explanation of the non-forfeiture benefits.(10) Using a dollar amount in printed material to be shown to a prospective policyholder unless accompanied by language in such material indicating the nature of the figure. This is intended to prohibit the use of dollar figures not in relation to guaranteed values and properly projected dividend figures. It is intended to prohibit the use of figures showing growth of stock values, or other values not a part of the life insurance contract.(11) Stating that a policy provides certain features which are not found in any other insurance policies, unless that in fact be true.(12) The making of any statement or implication in regard to an insurance policy that cannot be verified by reference to the policy contract itself, or a specimen copy of the policy being described, or to the company's officially published rate book and dividend illustrations.(13) Stating that life insurance is "loss proof" or "depression proof," but this shall not prohibit statements that life insurance benefits (other than dividends) are guaranteed by the company regardless of economic conditions.(14) Making any statement that a company makes a profit as a result of policy lapses or surrenders.(15) Making comparisons to the past experience of other life insurance companies as a means of projecting possible experience of your company. This paragraph is intended to protect policyholders from being misled as to the probabilities of the policy being sold having the same results through presentations of experience of companies which successfully sold similar policies without a. fair disclosure of the fact that many companies have had unfavorable experienceTenn. Comp. R. & Regs. 0780-01-33-.06
Original rule filed April 19, 1976; effective May 19, 1976.Authority: T.C.A. §§.56-2-301.