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Title 3 . Commerce, Community, and Economic Development
Chapter 31 . Miscellaneous
Section 375. Approval of advertising material

3 AAC 31.375. Approval of advertising material

(a) A person may not use an advertisement related to a viatical settlement transaction unless the advertisement is filed with and approved by the director for compliance with this section. The director will not approve an advertisement related to a viatical settlement transaction if the advertising

(1) contains misleading, potentially misleading, unfair, unclear, or deceptive information;

(2) is not conducive to accurate presentation and description of viatical settlement transactions or contracts;

(3) is contrary to the public interest; or

(4) is in violation of AS 21 or 3 AAC 31.300 - 3 AAC 31.449.

(b) A viatical settlement producer, viatical settlement broker, or viatical settlement representative shall establish and maintain control over the content, form, and distribution method of an advertisement relating to a viatical settlement transaction including at least annual notification of the requirements and procedures necessary for approval by the director before the use of an advertisement to each person authorized by the viatical settlement producer, viatical settlement broker, or viatical settlement representative to distribute an advertisement.

(c) An advertisement relating to a viatical settlement transaction may not

(1) omit material information or use words, phrases, statements, references, or illustrations if the omission or use has the capacity, tendency, or effect of misleading or deceiving viators as to the nature or extent of a benefit, loss covered, premium payable, or state or federal tax consequence;

(2) state or imply that interest charged on an accelerated death benefit or policy loan is unfair, inequitable, or in any manner an incorrect or improper practice;

(3) use the words "free," "no cost," "without cost," "no additional cost," or "at no extra cost," or words of similar meaning with respect to a benefit or service unless true;

(4) contain statistical information unless the

(A) statistical information accurately reflects recent and relevant facts; and

(B) the source of each statistic is clearly identified;

(5) disparage insurers, viatical settlement providers, viatical settlement brokers, viatical settlement representatives, insurance licensees, policies, services, or methods of marketing;

(6) use of any of the following, without disclosing the name of the viatical settlement provider, viatical settlement broker, or viatical settlement representative, if using any of the following would give the advertisement the capacity or tendency to mislead or deceive a person regarding the true identity of the viatical settlement provider, viatical settlement broker or viatical settlement representative, or to create the impression that a company other than the viatical settlement provider, viatical settlement broker, or viatical settlement representative would have responsibility for the financial obligation under the viatical settlement contract

(A) a trade name;

(B) a group designation;

(C) the name of the parent company of a viatical settlement provider, viatical settlement broker, or viatical settlement representative;

(D) the name of a particular division of a viatical settlement provider, viatical settlement broker, or viatical settlement representative;

(E) a service mark;

(F) a slogan;

(G) a symbol;

(H) a device or reference other than one described in (A) - (G) of this paragraph;

(7) use a combination of words, symbols, or physical material that by their content, phraseology, shape, color, or other characteristics

(A) are similar to a combination of words, symbols, or physical material used by a government program or agency; or

(B) have the capacity or tendency to mislead prospective viators to believe that the viatical settlement transaction is connected with a government program or agency; or

(8) create the impression that a government entity recommends, endorses, approves, or favors

(A) a viatical settlement provider, viatical settlement broker, or viatical settlement representative, its financial condition or status, the payment of its claims, its business practices, or its methods of operation;

(B) the merits, desirability, or advisability of a particular viatical settlement contract;

(C) a viatical settlement contract; or

(D) a life insurance policy or life insurance company.

(d) If an advertisement emphasizes the speed with which a viatical settlement transaction will occur, the advertisement must state, for transactions in this state and for transactions in all other states, the average amount of time for a transaction by the advertised viatical settlement provider

(1) from completion of a viatical settlement application to the date of offer during the previous 12 months; and

(2) from acceptance of the offer to receipt of the viatical settlement proceeds by the viator during the previous 12 months.

(e) If an advertisement emphasizes the dollar amount available to a viator under a viatical settlement contract, the advertisement must state the number of viatical settlement contracts and the average viatical settlement proceeds as a percent of the life insurance policy face value for the viatical settlement contracts entered into with the advertised viatical settlement provider during the past six months for transactions in this state and for transactions in all other states.

History: Eff. 8/25/2002, Register 163

Authority: AS 21.06.090

AS 21.89.110


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Last modified 7/05/2006