Section 2002.90  Testimonials or Endorsements by Third Parties

a)         Testimonials used in advertisements must be genuine, represent the current opinion of the author, be applicable to the policy advertised and be accurately reproduced.  The insurer, in using a testimonial, makes as its own all of the statements contained therein, and the advertisement, including such statements, is subject to all the provisions of this Part.  The Guideline for this paragraph (a) is found in Appendix A, Illustration V.

b)         If the person making a testimonial, an endorsement or an appraisal has a financial interest in the insurer or a related entity as a stockholder, director, officer, employee, or otherwise, such fact shall be disclosed in the advertisement.  If a person is compensated for making a testimonial, endorsement or appraisal, such fact shall be disclosed in the advertisement by language substantially as follows:  "Paid Endorsement."  This Part does not require disclosure of union "scale" wages required by union rules if the payment is actually for such "scale" for TV or radio performances. The payment of substantial amounts, directly or indirectly, for "travel and entertainment" for filming or recording of TV or radio advertisements remove the filming or recording from the category of an unsolicited testimonial and require disclosure of such compensation.  This subsection does not apply to an institutional advertisement which has as its sole purpose the promotion of the insurer.  The Guideline for this paragraph (b) is found in Appendix A, Illustration W.

c)         An advertisement shall not state or imply that an insurer or a policy has been approved or endorsed by an individual, group of individuals, society, association or other organizations, unless such is the fact, and unless any proprietary relationship between an organization and the insurer is disclosed.  If the entity making the endorsement or testimonial has been formed by the insurer or is owned or controlled by the insurer or the person or persons who own or control the insurer, such fact shall be disclosed in the advertisement.  The Guideline for this paragraph (c) is found in Appendix A, Illustration X.

d)         When a testimonial refers to benefits received under a policy, the specific claim data, including claim number, date of loss, and other pertinent information shall be retained by the insurer for inspection for a period of four years or until the filing of the next regular report of examination of the insurer, whichever is the longer period of time.  The Guideline for this paragraph (d) is found in Appendix A, Illustration Y.