Advertisements of Accident and Sickness Insurance Model Regulation (NAIC Model Law #40)
Learn what NAIC Model #40 means, its core rules for insurance advertisers, and how insurers can stay compliant.
What is the Advertisements of Accident and Sickness Insurance Model Regulation?
The NAIC Model #40 – Advertisements of Accident and Sickness Insurance Model Regulation is a foundational framework designed by the National Association of Insurance Commissioners (NAIC) to regulate advertising standards for accident and health insurance products.
Its purpose is simple yet powerful — to protect consumers by ensuring that all accident and sickness insurance advertisements are truthful, clear, and not misleading.
This model law covers how insurers, agents, and third-party marketers promote accident and health insurance through print, digital, broadcast, or online channels.
Goal: To promote transparency, fairness, and consistency in how health and accident insurance products are advertised to the public.
Purpose and Scope of NAIC Model #40
NAIC Model #40 aims to:
Prevent deceptive or ambiguous advertising practices.
Ensure accurate presentation of benefits, exclusions, and renewability.
Require disclosure of limitations and waiting periods.
Establish recordkeeping and filing standards for insurers.
It applies to all forms of advertisements — including radio, TV, print, social media, websites, email marketing, and brochures.
Key Provisions of the Model Regulation
Below are the major provisions of NAIC Model #40 that insurers and marketing teams must comply with:
1. Truthful Representation
All advertisements must accurately represent the benefits and terms of the policy. Misleading or incomplete information is strictly prohibited.
2. Clear Disclosure
Insurers must clearly state limitations, exclusions, and renewal terms to avoid consumer confusion.
3. Company Identification
Every advertisement must prominently display the insurer’s full name to ensure clarity and accountability.
4. Testimonials and Endorsements
Testimonials must reflect actual, current experiences. Any connection between the endorser and insurer must be disclosed.
5. Use of Statistics and Data
Comparative data and statistics must be accurate, verifiable, and sourced.
6. Limited Policy Identification
If the policy offers limited benefits, this must be explicitly mentioned in the ad.
7. Retention of Advertising Materials
Insurers are required to keep a complete file of all advertisements for at least four years for regulatory review.
How Insurers Can Stay Compliant
To comply with Model #40, insurance companies should:
Create a centralized ad review process before publishing.
Keep records of all advertisements and approvals.
Train marketing and compliance teams on Model #40 requirements.
Use AI-based compliance review tools (like Comply’s AdSure™) for automated ad verification and risk detection.
Why NAIC Model #40 Matters
This model law protects both consumers and insurers:
Consumers gain clarity about coverage and benefits.
Insurers maintain brand trust by ensuring compliance.
Regulators get a consistent baseline for advertising oversight.
Non-compliance can lead to regulatory action, fines, or the need to withdraw misleading ads.
State Adoption of Model #40
Each U.S. state decides how to adopt or modify Model #40. While most follow the NAIC standard, some introduce variations in:
Disclosure language
Filing requirements
Timeframes for recordkeeping
Frequently Asked Questions (FAQs)
What is NAIC Model #40?
NAIC Model #40 regulates how accident and sickness insurance products are advertised, ensuring ads are truthful, non-deceptive, and compliant.
Who does Model #40 apply to?
It applies to insurers, agents, agencies, and marketers promoting accident and health insurance in any medium.
Why is this model regulation important?
It protects consumers from misleading advertisements and ensures fair competition among insurers.
How long should insurers keep advertising records?
Insurers must keep advertising records for at least four years for regulator inspection.
What happens if an insurer violates Model #40?
Violations can result in penalties, corrective actions, or withdrawal of the advertisement.
Compliance Checklist for Marketing Teams
Our recommendation
✅ Verify all benefits and disclosures before publication.
✅ Include insurer’s name clearly in every ad.
✅ Avoid exaggerated claims or misleading testimonials.
✅ Maintain copies of all ad versions and approvals.
✅ Audit digital campaigns regularly for compliance.
