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RULE §21.107Testimonials, Appraisals, or Analyses

(a) A person or entity making a testimonial, recommendation or endorsement shall be deemed a "spokesperson" for an insurer or agent if the person or entity:

  (1) has a proprietary or other financial interest in the insurer or agent or a related entity as a stockholder, director, officer, employee or otherwise;

  (2) has been formed by the insurer or agent, or is owned or controlled by the insurer or agent, its employees, or the person or persons who own or control the insurer or agent;

  (3) has any person in a policy-making position who is affiliated with the insurer or agent in any of the capacities described in paragraphs (1) and (2) of this subsection; or

  (4) is in any way directly or indirectly compensated for making a testimonial, recommendation or endorsement.

(b) An advertisement may not state, imply, or create the impression directly or indirectly that the insurer, its financial condition or status, the payment of its claims, or the agent is recommended or endorsed by any division or agency of this state or the United States government. No advertisement may state that a policy form or kinds or plans of insurance are approved by the Texas Department of Insurance without disclosing that such approval is extended to all such policies, kinds, or forms of insurance legitimately sold in this state; nor may such statement imply recommendation by any agency of this state or the federal government.

(c) Licensing by a public body shall not be presented in any advertisement as an endorsement of an insurer or agent as distinguished from other insurers or agents similarly acted upon.

(d) An insurer or agent may advertise to the general public policies available only to members of an association described by the Insurance Code §1251.052. If the association's directors are not elected by its members, the advertisement, unless advertising only long-term care insurance, shall disclose this fact, and also disclose that the directors may approve rate increases. An advertisement may not state or imply that an insurer, agent, or policy has been approved or endorsed by an individual, group of individuals, society, association, or other organization, unless such is a fact and unless any relationship described in subsection (a) of this section that exists between the entity and the insurer or agent is prominently disclosed.

(e) A testimonial, recommendation, or endorsement made by a person or entity who is not a spokesperson shall represent the current opinion of the author and shall reflect the author's personal opinions of or experiences with the insurer or its products.

(f) A testimonial, recommendation, or endorsement shall be applicable to the policy advertised or to the insurer if no specific policy is being advertised, and shall be accurately reproduced.

(g) If a person is compensated, directly or indirectly, for making a testimonial, endorsement, or appraisal, this shall be disclosed in the advertisement by language substantially as follows: "Paid Endorsement."

(h) A testimonial, recommendation, or endorsement by any person or entity other than the issuing insurer or the insurer's agent shall not include representations or promises of future policy outcomes for themselves or others.

Source Note: The provisions of this §21.107 adopted to be effective February 1, 1981, 5 TexReg 3336; amended to be effective December 9, 2007, 32 TexReg 8830

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