State RegulationsIL specificDifficulty 2/5
An Illinois advertisement for an individual accident and health policy implies that the coverage is endorsed by a state health-care program. Under 215 ILCS 5/149 and 50 Ill. Adm. Code 2002, this advertisement is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An advertisement may not falsely imply that an insurer or its coverage is endorsed by, affiliated with, or approved by a government agency. Such an implication is a misleading representation about the nature of the coverage, prohibited by 215 ILCS 5/149 and by the A&H advertising standards of 50 Ill. Adm. Code 2002. Applicants who believe a policy carries government backing are misled about a material fact, which is precisely the harm the Illinois advertising rules exist to prevent.
Why the other options are wrong
- B) Typography does not cure a false implication of endorsement; under 215 ILCS 5/149 the misleading suggestion itself is unlawful regardless of type size.
- C) The problem is not the use of public information but the false implication of governmental approval, which 50 Ill. Adm. Code 2002 prohibits.
- D) Nothing in Illinois law requires an A&H policy to be tied to a government program; the false suggestion of endorsement is the violation.
Memory hook
Fake government backing is a misleading ad, full stop.