N.Y. Addresses Matter of Insurers’ Addresses in Agency Ads

February 10, 2008

New York agents looking to spruce up their advertisements better pay attention to the list of insurers they represent.

And their insurers’ addresses.

That’s because any agency or brokerage that lists in advertising the companies it represents must also include those companies’ principal headquarters – or risk violating state insurance law.

That’s the ruling reiterated by the state’s insurance department in its latest set of legal opinions.

Be it an ad in a phone book, on television or in any other medium, any mention of a specific insurer must include that company’s hometown.

The same rings same true for advertising that uses logos of insurers; it, too, must include the companies’ hometown or principal address, according to the lawyer for the department in the written opinion.

This clarification was prompted by questions from an anonymous agent who wanted to know whether insurers’ hometowns must be listed in an advertisement.

It’s not the only advertising-related opinion the department released.

The other concerns rules on whether an agent or broker can buy advertising with a client, and was prompted by a broker who asked whether it could pay to advertise on a client’s property.

The answer, a lawyer for the department wrote, depends on whether the advertising would be to rebate or induce the client to buy insurance, which is illegal under Empire State law.

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Insurance Journal Magazine February 11, 2008
February 11, 2008
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