(a) Contains any misleading representations or misrepresentations or is otherwise untrue,
deceptive, or misleading with regard to the information imparted, the status, character, or
representative capacity of such person, or the true purpose of the advertisement.
(b) Otherwise violates the provisions of these rules.
(5) An insurer, agent, or other person shall not solicit residents of this state for the purchase
of accident and sickness insurance through the use of a true or fictitious name which is
deceptive or misleading with regard to the status, character, or proprietary or representative
capacity of such person or the true purpose of the advertisement.
(6) An insurer, agent, or other person shall not use
a
lead-generating device or list of
prospective insureds compiled therefrom unless such lead-generating device contains the
following or substantially similar language in the same size of type as the rest of the
information and is not hidden or placed in a position to render it obscure:"This request for
information is insurance related and if you respond you may be contacted in an attempt to sell
you insurance."
(7) An insurer, agent, or other person shall not use
a
lead-generating device or list of
prospective insureds compiled therefrom if the insurer, agent, or other person knew or
reasonably should have known that the lead-generating device or list of prospective
members was obtained in a manner which violates any provision of the Michigan
insurance code or otherwise violates the provisions of these rules. A list of prospective
insureds shall not be purchased unless the purchaser requests from the seller any lead-
generating device that was used to compile the list and obtains a specimen copy of any such
device that is disclosed. An agent or insurer may use a list obtained through lead-generating
devices before the effective date of these rules for up to 6 months after the effective date if the
lead-generating devices used to compile the lists are retained on file by the agent or insurer for
inspection by the insurance bureau.
(8) The contents of all advertisements, including lead-generating devices, regardless of
by whom prepared, created, designed, or presented, shall be the responsibility of any
insurer benefiting directly or indirectly from their use.
History: 1979 AC; 1991 AACS.
R 500.655 Deceptive words, phrases, or illustrations prohibited.
Rule 5. (1) An advertisement shall not omit information or use words, phrases, statements,
references, or illustrations if the omission of the information or use of the words, phrases,
statements, references, or illustrations has the capacity, tendency, or effect of misleading
or deceiving purchasers or prospective purchasers as to the nature or extent of a policy benefit
payable, loss covered, or premium payable. The fact that the policy offered is made available
to a prospective insured for inspection before consummation of the sale or that an offer is
made to refund the premium if the purchaser is not satisfied does not remedy misleading
statements.
(2) An advertisement shall not contain or use words or phrases such as "all," "full,"
"comprehensive," "complete," "unlimited," "up to," "as high as," "this policy will help fill
some of the gaps that medicare and your present insurance leave out," or "the policy will help
to replace your income" or any similar words and phrases in a manner which exaggerates
any benefits beyond the terms of the policy.
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