by Structured Settlement Watchdog
How do you differentiate yourself when marketing structured settlements, annuities or life insurance?
Hopefully your command of the subject matter, your skill in articulating it and the exemplary work that you do wins the day. While it may be tempting to splash out on an "incentive campaign", licensed agents and brokers (and their clients) need to be mindful of what the New York Insurance Department has opined to be "out of bounds".
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Following are two selected opinions for examination. The opinions were not specifically requested in connection with the sale or placement of structured settlement annuities but they are instructive on what regulators are thinking.
"The Beef" is a Non Go! July 23, 2004 opinion
May a New York licensed insurance broker advertise its services by utilizing a direct-mail marketing campaign whose main theme is: "If we can’t show you ways to save you money on your health insurance we will buy you the biggest steak in town"?
Conclusion:
No. The campaign’s theme, which is an offer to buy prospective clients "the biggest steak in town" if the broker cannot save money on the health insurance costs of the prospective clients, constitutes valuable consideration and an improper inducement in violation of New York Insurance Law § 4224.
Advertising Guarantees and Testimonials June 10, 2004 opinion
Questions Presented:
1) Is the quote in an advertisement "We guarantee to save you money" misleading?
2) May the statement "We guarantee satisfaction in doing business with our agency" be included in an advertisement?
3) May a testimonial from an insured, which states, "I saved over $102 on my car insurance" be included in an advertisement?
Conclusions:
1) The quote "We guarantee to save you money" is misleading.
2) The statement "We guarantee satisfaction in doing business with our agency" is misleading.
3) The testimonial from the insured is misleading because it does not state whether the savings resulted from a change in coverage. Additionally, because a specific amount of money is mentioned, the name of the insurer, as well as the city in which the insurer’s principal office is located, must be provided pursuant to N.Y. Ins. Law § 2122(b) (McKinney 2000).
For the full opinion click here
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