2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 508E - VIATICAL SETTLEMENT CONTRACTS
508E.14 - ADVERTISING FOR VIATICAL SETTLEMENTS.

        508E.14  ADVERTISING FOR VIATICAL SETTLEMENTS.
         The purpose of this section is to provide prospective viators with
      clear and unambiguous statements in the advertisement of viatical
      settlements and to assure the clear, truthful, and adequate
      disclosure of the benefits, risks, limitations, and exclusions of any
      viatical settlement contract.  This purpose is intended to be
      accomplished by rules adopted by the commissioner for the
      establishment of guidelines and standards of permissible and
      impermissible conduct in the advertising of viatical settlements to
      assure that product descriptions are presented in a manner that
      prevents unfair, deceptive, or misleading advertising, and is
      conducive to accurate presentation and description of viatical
      settlements through the advertising media and materials used by
      viatical settlement licensees.
         1.  This section shall apply to any advertising of viatical
      settlement contracts or related products or services intended for
      dissemination in this state, including internet advertising viewed by
      persons located in this state.  Where disclosure requirements are
      established pursuant to federal regulation, this section shall be
      interpreted so as to minimize or eliminate conflict with federal
      regulation wherever possible.
         2.  Every viatical settlement licensee shall establish and at all
      times maintain a system of control over the content, form, and method
      of dissemination of all advertisements of its contracts, products,
      and services.  All advertisements, regardless of by whom written,
      created, designed, or presented, shall be the responsibility of the
      viatical settlement licensees, as well as the individual who created
      or presented the advertisement.  A system of control shall include
      regular, routine notification, at least once a year, to agents and
      others authorized by the viatical settlement licensee who disseminate
      advertisements of the requirements and procedures for approval prior
      to the use of any advertisements not furnished by the viatical
      settlement licensee.
         3.  An advertisement shall be truthful and not misleading in fact
      or by implication.  The form and content of an advertisement of a
      viatical settlement contract shall be sufficiently complete and clear
      so as to avoid deception.  It shall not have the capacity or tendency
      to mislead or deceive.  Whether an advertisement has the capacity or
      tendency to mislead or deceive shall be determined by the
      commissioner from the overall impression that the advertisement may
      be reasonably expected to create upon a person of average education
      or intelligence within the segment of the public to which it is
      directed.
         4.  The information required to be disclosed under this section
      shall not be minimized, rendered obscure, or presented in an
      ambiguous fashion or intermingled with the text of the advertisement
      so as to be confusing or misleading.
         a.  An advertisement shall not 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 any benefit, loss
      covered, premium payable, or state or federal tax consequence.  The
      fact that the viatical settlement contract offered is made available
      for inspection prior to consummation of the sale, or an offer is made
      to refund the payment if the viator is not satisfied or that the
      viatical settlement contract includes a free-look period that
      satisfies or exceeds legal requirements, does not remedy a misleading
      statement.
         b.  An advertisement shall not use the name or title of a life
      insurance company or a life insurance policy unless the advertisement
      has been approved by the insurer.
         c.  An advertisement shall not state or imply that interest
      charged on an accelerated death benefit or a policy loan is unfair,
      inequitable, or in any manner an incorrect or improper practice.
         d.  The words "free", "no cost", "without cost", "no
      additional cost", "at no extra cost", or words of similar import
      shall not be used with respect to any benefit or service unless true.
      An advertisement may specify the charge for a benefit or a service or
      may state that a charge is included in the payment or use other
      appropriate language.
         e.  Testimonials, appraisals, analyses, or endorsements used
      in advertisements must be genuine; represent the current opinion of
      the author; be applicable to the viatical settlement contract product
      or service advertised, if any; and be accurately reproduced with
      sufficient completeness to avoid misleading or deceiving prospective
      viators as to the nature or scope of the testimonials, appraisal,
      analysis, or endorsement.  In using a testimonial, appraisal,
      analysis, or endorsement, a licensee under this chapter makes as its
      own all the statements contained therein, and the statements are
      subject to all of the provisions of this section.
         (1)  If the individual making a testimonial, appraisal, analysis,
      or an endorsement has a financial interest in the party making use of
      the testimonial, appraisal, analysis, or endorsement, either directly
      or through a related entity as a stockholder, director, officer,
      employee, or otherwise, or receives any benefit directly or
      indirectly other than required union scale wages, that fact shall be
      prominently disclosed in the advertisement.
         (2)  An advertisement shall not state or imply that a viatical
      settlement contract benefit or product or service has been approved
      or endorsed by a group of individuals, society, association, or other
      organization unless that is the fact and unless any relationship
      between an organization and the viatical settlement licensee is
      disclosed.  If the entity making the endorsement or testimonial is
      owned, controlled, or managed by the viatical settlement licensee, or
      receives any payment or other consideration from the viatical
      settlement licensee for making an endorsement or testimonial, that
      fact shall be disclosed in the advertisement.
         (3)  When an endorsement refers to benefits received under a
      viatical settlement contract, all pertinent information shall be
      retained by the viatical settlement licensee for a period of five
      years after its use.
         5.  An advertisement shall not contain statistical information
      unless it accurately reflects recent and relevant facts.  The source
      of all statistics used in an advertisement shall be identified.
         6.  An advertisement shall not disparage an insurer, viatical
      settlement provider, viatical settlement broker, insurance producer,
      policy, services, or methods of marketing.
         7.  The name of the viatical settlement licensee shall be clearly
      identified in all advertisements about the viatical settlement
      licensee or its viatical settlement contract, products, or services,
      and if any specific viatical settlement contract is advertised, the
      viatical settlement contract shall be identified either by form
      number or some other appropriate description.  If an application is
      part of the advertisement, the name of the viatical settlement
      provider shall be shown on the application.
         8.  An advertisement shall not use a trade name, group
      designation, name of the parent company of a viatical settlement
      licensee, name of a particular division of the viatical settlement
      licensee, service mark, slogan, symbol or other device, or reference
      without disclosing the name of the viatical settlement licensee, if
      the advertisement would have the capacity or tendency to mislead or
      deceive as to the true identity of the viatical settlement licensee,
      or to create the impression that a company other than the viatical
      settlement licensee would have any responsibility for the financial
      obligation under a viatical settlement contract.
         9.  An advertisement shall not use any combination of words,
      symbols, or physical materials that by their content, phraseology,
      shape, color, or other characteristics are so similar to a
      combination of words, symbols, or physical materials used by a
      government program or agency or otherwise appear to be of such a
      nature that they tend to mislead prospective viators into believing
      that the solicitation is in some manner connected with a government
      program or agency.
         10.  An advertisement may state that a viatical settlement
      licensee is licensed in the state where the advertisement appears,
      provided it does not exaggerate that fact or suggest or imply that a
      competing viatical settlement licensee may not be so licensed.  The
      advertisement may ask the audience to consult the viatical settlement
      licensee's internet site or contact the commissioner to find out if
      the state requires licensing and, if so, whether the viatical
      settlement provider or viatical settlement broker is licensed.
         11.  An advertisement shall not create the impression that the
      viatical settlement provider, its financial condition or status, the
      payment of its claims or the merits, desirability, or advisability of
      its viatical settlement contracts are recommended or endorsed by any
      government entity.
         12.  The name of the actual viatical settlement licensee shall be
      stated in each of its advertisements.  An advertisement shall not use
      a trade name, any group designation, name of any affiliate, or
      controlling entity of the viatical settlement licensee, service mark,
      slogan, symbol, or other device in a manner that would have the
      capacity or tendency to mislead or deceive as to the true identity of
      the actual viatical settlement licensee or create the false
      impression that an affiliate or controlling entity would have any
      responsibility for the financial obligation of the viatical
      settlement licensee.
         13.  An advertisement shall not directly or indirectly create the
      impression that any division or agency of the state or of the United
      States government endorses, approves, or favors any of the following:

         a.  A viatical settlement licensee or its business practices
      or methods of operation.
         b.  The merits, desirability, or advisability of any viatical
      settlement contract.
         c.  Any viatical settlement contract.
         d.  Any life insurance policy or life insurance company.
         14.  If the advertiser emphasizes the speed with which the
      viatication will occur, the advertising must disclose the average
      time frame from completed application to the date of offer and from
      acceptance of the offer to receipt of the funds by the viator.
         15.  If the advertising emphasizes the dollar amounts available to
      viators, the advertising shall disclose the average purchase price as
      a percent of face value obtained by viators contracting with the
      licensee during the past six months.  

         2008 Acts, ch 1155, §14
         Referred to in § 508E.5