Shush! Stifle Your Posts About the Guaranty Fund

Office officials take a strict approach to interpreting the “no statement” rules.

“No, a licensed insurance agent or broker who solicits structured settlement annuities may not properly speak or write about guaranty funds, even in general terms, in connection with the solicitation of annuities to lawyers or their personal injury clients,” officials say in the opinion.

“No, the inclusion of an express disclaimer in marketing materials, such as a statement to the effect that the existence of guaranty funds is not a reason to buy insurance, or a direct reference to the provisions of Insurance Law Section 7718, will not render guaranty fund references in such marketing materials acceptable,” officials say.

If consumers or others do ask agents and brokers about guaranty fund protection, they should refer the questions to the New York State Insurance Department, “or to a licensed insurer, which may, upon a written request, provide information about the guaranty fund to policyholders by means of a form prepared by the guaranty fund and approved by the Superintendent of Insurance,” officials say.

The officials note that questions involved an entity that had posted a presentation discussing the guaranty fund on a Web profile page.

For purposes of the “no statements about the guaranty fund” statute, “the scope of the statute is such that any means of communication will qualify as an advertisement, announcement or statement under the statute,” officials say.