What must advertisements include if they mention policy amounts, benefits, or costs?

When advertisements for insurance policies mention specific policy amounts, benefits, or costs, it is essential that they also include the exceptions, reductions, and limitations of the policy. This requirement ensures that consumers have a clear and accurate understanding of what the policy entails, including any conditions that may affect the coverage they expect.

By including this critical information, advertisements mitigate the risk of misleading consumers who might be attracted solely to the positive aspects of a policy without fully understanding the potential limitations. For example, a policy may boast high benefits but also have significant exclusions that could impact the validity of a claim. This transparency is crucial in maintaining ethical advertising practices and safeguarding consumer interests.

In contrast, discussing underwriting guidelines, testimonials by policyholders, or claims processing procedures does not directly address the need for clarity regarding the actual benefits and costs presented in the advertisement. These elements can provide additional context and help consumers understand the insurance landscape but do not substitute the necessity of disclosing limitations and exceptions that influence the policy's true value and applicability.