NAC689A.120. Benefits, losses and premiums.

     1. Words, phrases or illustrations may not be used in a manner which has the capacity or tendency to deceive as to the extent of any policy benefit payable, loss covered or premium payable.

     2. The terms “all,” “full,” “complete,” “comprehensive,” “unlimited,” “up to,” “as high as,” “this policy will pay your hospital and surgical bills” or “this policy will replace your income,” or similar terms, may not be used to exaggerate any benefit beyond the terms of the policy, but may be used only in a manner which fairly describes the benefit.

     3. A policy covering only one disease or a list of specified diseases may not be advertised in a manner which implies coverage beyond the terms of the policy. Synonymous terms may not be used to refer to any disease so as to imply broader coverage than is the fact.

     4. The benefits of a policy which provide for payments in varying amounts for the same loss occurring under different conditions, or which provide benefits only when a loss occurs under certain conditions, may not be advertised without disclosing the limited conditions under which benefits are provided by the policy.

     5. Phrases such as “this policy pays $1,800 for hospital room and board expenses” may not be used unless the advertisement indicates the maximum daily benefit and the maximum time limit for hospital room and board expenses.

     6. When an advertisement refers to any amount of money, period of time for which any benefit is payable, cost of policy, specific benefit or the loss for which a benefit is payable, it must also disclose those exceptions, reductions and limitations affecting the basic provisions of the policy without which the advertisement would have the capacity and tendency to mislead or deceive.

     7. When a policy contains a time period between the effective date of the policy and the effective date of coverage under the policy or a time period between the date a loss occurs and the date benefits begin to accrue for such loss, an advertisement of the policy must disclose the existence of such periods.

     8. An advertisement must disclose the extent to which any loss is not covered if the cause of such loss is traceable to a condition existing prior to the effective date of the policy.

     9. When a policy does not cover losses traceable to preexisting conditions, no advertisement of the policy may state or imply that the applicant’s physical condition or medical history will not affect the issuance of the policy or payment of a claim thereunder. This limits the use of the phrase “no medical examination required” and phrases of similar import.

     [Comm’r of Insurance, LH-1 part § 3, eff. 5-13-72]