Maybe you're an insurance agent. Maybe you run an insurance company. Marketing insurance isn't like selling a car. There are rules and laws and guidelines and regulations and all sorts of messy and confusing things you have to do. So how do you market your insurance business and still comply with the rules?

1. Marketing by the Book
Insurance Marketing
and
Compliance
THE INFORMATION CONTAINED INTHIS SITE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY, AND
SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SUBJECT MATTER.
PLEASECONSULTYOUR OWN ATTORNEY FOR SPECIFIC LEGAL CONCERNS.

2. What You Will Learn
•What agencies regulate insurance marketing?
•What are the rules for insurance marketing?
•Are the rules different for marketing annuities?
•What are the penalties for breaking the rules?
•How can you market effectively without
breaking the rules?

3. What agencies regulate insurance
marketing?
Office of the Insurance Commissioner
(State Level)
Securities and Exchanges
Commission (Federal Level –
annuities only)

4. What are the rules for
insurance marketing?

5. State Rules
Rules may vary slightly from state to state, but most states follow the
Model Rules from the National Association of Insurance
Commissioners (NAIC).

6. Health & Accident Insurance
• Lead-generating devices may include an “invitation to inquire”,
• You may NOT refer to cost.
• You must have a provision on the invitation to inquire that says
something like this: “This policy has [exclusions] [limitations]
[reduction of benefits] [terms under which the policy may be
continued in force or discontinued]. For costs and complete details of
the coverage call [or write] your insurance agent or the company
[whichever is applicable].”
• Source: MDL-40

7. Accident & Health (cont.)
• Advertisements must be truthful and cannot contain misleading
information.
• “Words or phrases, the meaning of which is clear only by implication
or by familiarity with insurance terminology, shall not be used.” (5D)
• Certain terms or phrases are heavily scrutinized, like “all,” “full,”
“complete,” “comprehensive,” “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.” (6A4)
• Source: MDL-40

8. Accident & Health (cont.)
• You cannot use advertisements that “are designed to create undue
fear or anxiety in the minds of those to whom they are directed.”
(6A32)
• For example, using statistics in a way that exaggerates the
importance or prevalence of a disease or condition is prohibited.
• Certain phrases like “financial disaster” or “financial distress” are
permitted only in advertisements for specific types of policies and
only in moderation.
• Source: MDL-40

9. Accident & Health (cont.)
• Marketers must know the difference between an invitation to inquire
and an invitation to contract.
• Advertisements that are “invitations to contract” require special
types of disclosure.
• Terms that may not be familiar to consumers (like “confining
sickness” must be clearly explained.
• Bold print or ALL CAPS disclosures must appear on ads for specified
illness policies or accident-only policies.
• Source: MDL-40

10. Accident & Health (cont.)
• Accident & Health marketing is covered primarily by the Model
Regulation 40 (MDL-40), which is a 46-page PDF.
• Advertisers must remember that ignorance of the law is no excuse.
Violating even a small portion of the rules can result in serious legal
consequences.
• Illustrations in health insurance policies may also be covered under
HIPPA and be restricted for privacy.
• When anything is published in your name, you are responsible for
that content. Even if you hired a copywriter, you are the one who is
liable if a complaint is made or an investigation begins.

11. Life Insurance
• Like health insurance, no advertisement is allowed to use terms that
might be misleading to the general public.
• Certain words have a tendency to mislead, like:
• Investment
• Investment plan
• Founder’s plan
• Profit sharing
• Savings plan
• Private pension plan
• Retirement plan
• Source: MDL-570

12. Life Insurance (cont.)
• An advertisement for whole life or a life/annuity policy must not
emphasize the investment features to such a degree that it would
mislead the consumer into believing that they’re purchasing
something other than life insurance.
• Insurance producers must not refer to themselves as “financial
planners” or “investment advisers” unless that is actually the case.
• For testimonials that are used, the data behind the testimonial must
be maintained for five years.
• Source: MDL-570

13. Life Insurance (cont.)
• Many life insurance advertising regulations mimic the regulations that
surround health and accident insurance. However, there are some notable
differences.
• NAIC covers life insurance marketing in Model Regulation 570 (MDL-570),
a 38-page PDF.
• Life insurance producers who deal with annuity products must remember
that annuities face additional regulation from the SEC, so SEC regulations
must be followed in addition to state OIC regulations.
• Some states have additional provisions (GA, IA, KS, PA, SD, UT, &VA)
• Some states have their own unique provisions (AK, DE, DC, HI, ID, IN, ME,
MA, MS, MT, NV, NM, SC, &WY).

14. What are the penalties for
breaking the rules?

15. What are the penalties for breaking the
rules?
• Penalties may vary depending on the state and the situation.
• Breaking the rules could subject you or your brokerage to civil lawsuits for
malpractice or fraud, resulting in monetary damages.
• Violating insurance marketing provisions can result in suspension or revocation
of your insurance producer’s license.
• Breaking the rules is very likely to cause your underwriting companies to sever
their ties with you, leaving you with few companies left to represent.
• Violating the SEC rules about annuity marketing can result in federal criminal
charges.
• Large companies that break the rules could be subject to federal charges when
the promotional material was distributed in multiple states.

16. How can you market safely?

17. How can you market safely?
•Market the person, not the product.
•Market the company, not the product.
•Seek legal counsel.
•Hire an expert.

18. Market the person, not the product.
• Insurance is all about trust. Marketing should focus on the person
selling the insurance rather than the specifics of the product or policy
offered (which should be discussed during private consultations).
• Content marketing, social media marketing, newsletters, and
websites can help producers market themselves.
• Marketing specific products doesn’t help the individual producer or
brokerage.There are hundreds of producers for your company in
your geographic area all offering the exact same policies. But there’s
only oneYOU!

19. Market the company, not the product.
• This works best when the company has a good reputation.
• Instead of discussing individual policies, market the reputation of the
company itself.
• Examples of marketing the company include:
• “Aflac processes most claims within four days.”
• “[State Farm] handled our first insurance claim in 1922.”
• “From helping pass historic seatbelt legislation to responding to national
catastrophes, Allstate’s history is proof of what rolling up your sleeves can
do.”

20. Seek Legal Counsel
• Whenever you’re creating new promotional materials, it is absolutely
essential that you seek legal counsel before publishing or using those
materials.
• In-house counsel is a good option for larger brokerages or
companies. Smaller brokerages can contract with an attorney
experienced in insurance law.
• Some agents may have a compliance department with their
underwriting company to offer legal counsel on self-created
promotional material. Check your IC agreement or check with your
company to determine whether self-created promotional material
must be vetted by your parent company.

21. Hire an expert
• An SEO firm or website design company may offer copywriting (or
SEO writing) as an additional service. Unless your company
specializes in insurance, their copywriters are NOT likely to
understand the rules. Copywriters for most SEO firms and web
design companies are subcontractors who are paid bottom-dollar –
usually new or inexperienced copywriters.
• DO NOT let your SEO firm or website design company do your
writing!
• In-house copywriters are a good option for larger brokerages or
companies because they can be overseen and trained correctly.
However, they may not always be able to handle the volume during
rush periods without some outsourced assistance.

22. Hire an expert (cont.)
• Any material created by a freelancer should be vetted or checked by
legal counsel or by someone who’s in-house and can verify that it
meets the company’s standards.
• Freelancers can be a great way to help you create marketing content.
However, you need to be aware that:
• Not all copywriters are any good, and
• Most copywriters do not know insurance.
• For best results, select a copywriter with experience in insurance
copywriting, legal copywriting, or financial copywriting. All these
areas are heavily regulated and tend to attract copywriters who
understand how to write in heavily regulated industries.

23. Hire an expert (cont.)
• TRUST BUTVERIFY!
• Hiring an expert can be a great idea. But remember thatYOU are on
the hook for anything you publish under your name or your
company’s brand.

24. Thank you!
For more information,
please contact me at:
http://www.hollyantle.com
or
holly@hollyantle.com
THE INFORMATION CONTAINED INTHIS SITE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY, AND
SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SUBJECT MATTER.
PLEASECONSULTYOUR OWN ATTORNEY FOR SPECIFIC LEGAL CONCERNS.