State RegulationsNY specificDifficulty 1/5
Under N.Y. Ins. Law §2603, an insurance advertisement is false or misleading if it:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under N.Y. Ins. Law §2603, no insurer may issue or circulate an advertisement that misrepresents the true nature, terms, or benefits of a policy, and a misleading policy name or title is equally prohibited. The Department of Financial Services polices advertising so consumers do not buy coverage on a false impression of what they are getting.
Why the other options are wrong
- A) Using the insurer's properly licensed trade name is ordinary and lawful, not misleading by itself.
- C) Depicting the insurer's office building is innocuous imagery that misrepresents nothing about the coverage.
- D) There is no requirement to list every appointed agent in an advertisement of a policy.
Memory hook
Ads may not distort the deal — terms, benefits, or the policy's very name.