New Jersey Life Producer Law Practice Test

What must be done with insurance advertisements before they are used?

1. They must be printed in newspapers

2. They must be submitted for approval

3. They must be filed with the IRS

4. They must be recorded with the state's insurance department

The correct answer is: They must be submitted for approval

Before insurance advertisements can be used, they must be submitted for approval. This requirement ensures that promotional materials comply with state regulations and accurately represent the insurance products being offered. The approval process helps protect consumers from misleading information and guarantees that advertisements meet legal standards outlined by state insurance laws. Submitting ads for approval is a crucial step, as it provides an opportunity for state regulators to review the content of the advertisement for clarity, honesty, and compliance with insurance regulations. This oversight is essential in maintaining the integrity of the insurance industry and fostering trust between insurers and consumers.