Section 2010.APPENDIX A   Interpretive Guidelines

Section 2010.ILLUSTRATION D   Guideline to Section 2010.40

This Section permits the use of either of the following alternative methods of disclosure:

a)         The first alternative provides for the disclosure of exceptions, limitations, reductions and other restrictions conspicuously and in close conjunction with the statements to which such information relates.  This may be accomplished by disclosure in the description of the related benefits or in a paragraph set out in close conjunction with the description of policy benefits.

b)         The second alternative provides for the disclosure of exceptions, limitations, reductions and other restrictions not in conjunction with the provisions describing policy benefits but under appropriate captions of such prominence that the information shall not be minimized, rendered obscure or otherwise made to appear unimportant.  The phrase "under appropriate captions" means that the title must be accurately descriptive of the captioned material.  Appropriate captions include the following:  "Exceptions," "Exclusions," "Conditions Not Covered," and "Exceptions and Reductions."  The use of captions such as, or similar to, the following are not acceptable because they do not provide adequate notice of the significance of the material:  "Extent of Coverage," "Only these Exclusions," or "Minimum Limitations."

In considering whether an advertisement complies with the disclosure requirements of this Section, the requirements of this Section must be applied in conjunction with the form and content standards contained in Section 2010.50.