§ 51.31. Testimonials or endorsements by third parties.
(a) Testimonials used in advertisements shall be genuine, represent the current opinion of the author, be applicable to the contract advertised and be accurately reproduced. The company, in using a testimonial, makes as its own the statements contained therein, and the advertisement, including the statement, is subject to this chapter.
(b) If the person making a testimonial, an endorsement or an appraisal has a financial interest in the company or a related entity as a stockholder, director, officer, employe or otherwise, the fact shall be prominently disclosed in the advertisement.
(c) If a person is compensated for making a testimonial, endorsement or appraisal, the fact shall be disclosed in the advertisement by language substantially as follows: ‘‘Paid Endorsement.’’ This rule does not require disclosures of union ‘‘scale’’ wages required by union rules if the payment is actually for such ‘‘scale’’ for TV or radio performances. However, the payment of substantial amounts, directly or indirectly, for travel or entertainment, may be sufficient compensation to require prominent disclosure as a ‘‘Paid Endorsement’’ in the advertisement.
(d) An advertisement may not represent or imply that a company or a contract has been approved or endorsed by an individual, group of individuals, society, association or other organizations, unless such is the fact, and unless a proprietary relationship between an organization and the insurer is disclosed. If the entity making the endorsement or testimonial has been formed by the company or is owned or controlled by the company or the person or persons who own or control the company, the fact shall be disclosed in the advertisement.
(e) If a testimonial refers to benefits received under a contract, the specific claim data, including claim number, date of loss, and other pertinent information shall be retained by the insurer for inspection for a period of 4 years or until the filing of the next regular report on examination of the insurer, whichever is the longer period of time.
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