NRS 688C.380 Text of information required to be disclosed; use of misleading omissions, language or illustrations; use of name or title of insurer or policy; prohibited statements, implications and words.

488 words·~2 min read·/nv/chapter-688c-viatical-settlements/688c-380

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. The information required to be disclosed under NRS 688C.350 to 688C.430 , inclusive, may not be minimized, obscured, presented ambiguously or so intermingled with other text of an advertisement as to be confusing or misleading.

2. An advertisement may not omit material information or use language or illustrations if the omission or use has a capacity or tendency to, or does, mislead viators, purchasers of viatical settlements or prospective purchasers of viatical settlements as to the nature or extent of any benefit, loss covered, premium payable or effect on federal or state taxes. Making a viatical settlement or an agreement to purchase a viatical settlement available for inspection before it is consummated, or offering to refund payment if the viator is not satisfied within the period prescribed in subsection 4 of NRS 688C.300 , does not remedy misleading statements.

3. An advertisement may not use the name or title of an insurer or policy unless the advertisement has been approved by the insurer.

4. An advertisement may not represent that premiums on a viaticated policy need not be paid in order to maintain that policy, unless that is the fact.

5. An advertisement may not state or imply that interest charged on an accelerated death benefit or loan on a policy is unfair or in any way improper.

6. The words “free,” “no additional cost” or words of similar import may not be used:

(a)With respect to insurance, unless the terms of the policy provide that the policy is provided without cost to the policyholder.

(b)With respect to any benefit or service other than insurance unless true.

7. Certain advertisements relating to viatical settlements are deemed to be false and misleading on their face and are prohibited. Those advertisements include, without limitation, the following words and phrases:

(a)“Guaranteed,” “fully secured,” “100 percent secured,” “fully insured,” “secure,” “safe,” “backed by rated insurance companies,” “backed by federal law,” “backed by state law” or “state guaranty funds”;

(b)“No risk,” “minimal risk,” “low risk,” “no speculation” or “no fluctuation”;

(c)“Qualified or approved for individual retirement accounts (IRAs), Roth IRAs, 401(k) plans, simplified employee pensions (SEPs), 403(b) plans, Keogh plans, TSA, other retirement account rollovers” or “tax deferred”;

(d)Utilization of the word “guaranteed” to describe a fixed return, annual return, principal, earnings, profits or investment;

(e)“No sales charges or fees”;

(f)“High yield,” “superior return,” “excellent return,” “high return” or “quick profit”; and

(g)Favorable representations or testimonials about the benefits of viatical settlement contracts and agreements to purchase viatical settlements as an investment, out of context and purported to have been taken from newspapers, trade papers, journals, radio and television programs and all other forms of print and electronic media,

Ê or similar representations.