Description of Benefits, Coverage, and Policy Provisions

(a) An advertisement may not imply coverage beyond the terms of the policy or policies advertised, either by use of synonymous words or otherwise so as to imply broader coverage than exists.

(b) An advertisement may not represent, directly or indirectly, that a policy provides for the payment of certain benefits in addition to other benefits when such is not the fact.

(c) No advertisement may omit information or use words, phrases, statements, references, or illustrations if the omission of such information or use of such words, phrases, statements, references, or illustrations has the capacity, tendency, or effect of misleading or deceiving purchasers or prospective purchasers as to the nature or extent of any loss covered, premium payable, or policy benefit payable.

(d) An advertisement may not contain untrue statements with respect to the time within which claims will be paid or represent or imply that claim settlements will be liberal or generous beyond the terms of a policy or that special treatment not provided for in the policy will be provided or extended. An unusual amount paid for a unique claim for the policy advertised is misleading and may not be used, unless it is disclosed that such payment is unusual or unique.

(e) An advertisement may not falsely represent directly or indirectly, that a policy may be sold only to certain persons because of their occupation, association, age, sex, or other condition.

(f) Benefits provided by a rider to a policy, and/or benefits that are in addition to the primary policy benefits, shall not be advertised in a manner that has the effect of misleading or deceiving, or the potential to mislead or deceive, prospective purchasers as to the existence or nature of the primary policy benefits.

Source Note: The provisions of this §21.105 adopted to be effective February 1, 1981, 5 TexReg 3336; amended to be effective February 14, 1991, 16 TexReg 556.