Understanding NAIC Model 570 (Life Insurance and Annuities Advertisement Regulation)
Learn what NAIC Model 570 means for insurers. Discover key rules, best practices, and compliance tips for life insurance and annuity advertising across the U.S.
Introduction
The NAIC Model 570 – Advertisements of Life Insurance and Annuities sets the national standard for how insurance companies advertise life insurance and annuity products. It ensures that all marketing materials — print, digital, or broadcast — are truthful, clear, and not misleading.
This regulation helps protect consumers from deceptive advertising practices and guides insurers on maintaining ethical standards while promoting their products.
What is NAIC Model 570? (Advertisements of Life Insurance and Annuities)
NAIC Model 570, officially titled Advertisements of Life Insurance and Annuities, is a key insurance advertising regulation issued by the National Association of Insurance Commissioners (NAIC). It establishes clear, nationwide standards for how life insurance and annuity products can be promoted to consumers.
The purpose of Model 570 is to ensure that every insurance advertisement is truthful, clear, balanced, and not misleading—whether it appears in print, TV, email, or digital media. By defining what constitutes fair advertising practices, it protects consumers from deceptive marketing and ensures they receive accurate, complete informationabout insurance products before making a decision.
For insurers, compliance with NAIC Model 570 helps maintain regulatory trust, avoid penalties, and support faster ad approvals by state departments of insurance. It forms the compliance backbone for all life insurance and annuity marketing materials across the United States.
Key Objectives of NAIC Model 570
They key objectives are
To prevent misleading claims in insurance and annuity advertisements.
To ensure full transparency in product communication.
To promote fair competition among insurers.
To protect consumers’ right to accurate information when evaluating life or annuity products.
Scope and Applicability
The regulation applies to all types of life insurance and annuity advertisements, including:
Print ads (newspapers, brochures, billboards)
Digital and social media marketing
TV and radio commercials
Emails, online videos, and sponsored content
Agent or broker presentations
It covers both direct-to-consumer and intermediary-driven advertisements, whether they originate from the insurer, agency, or producer.
Core Advertising Standards under Model 570
1. Truthfulness and Clarity
All statements must be accurate and verifiable. Misleading terms like “investment,” “savings,” or “retirement plan” cannot be used unless clearly explained as insurance or annuity products.
2. Use of Statistics and Rankings
Any performance data, rankings, or third-party endorsements must include reliable sources and context. Selective or incomplete comparisons are prohibited.
3. Company Identity Disclosure
Each ad must clearly identify the insurer’s name — not just the agent or distributor — to avoid consumer confusion.
4. Testimonials and Endorsements
Testimonials must be authentic, relevant, and not misleading. If compensation or relationships exist, they must be disclosed.
5. Limitations and Conditions
Any limitations, exclusions, or conditional guarantees must be displayed prominently, not buried in fine print.
Examples of Prohibited Advertising Practices
Here are just a few examples
Referring to a life insurance policy as a “savings account” or “guaranteed investment.”
Using misleading comparisons between different insurers or product types.
Omitting material details about fees, surrender charges, or benefit conditions.
Presenting hypothetical performance results as actual results.
Why NAIC Model 570 Matters for Insurers and Compliance Teams
Model 570 ensures that insurers maintain ethical transparency in all communications.
Compliance with this model helps:
Avoid regulatory penalties or consumer lawsuits.
Build trust and brand integrity.
Support long-term consumer confidence in the insurance industry.
Enable faster approval of marketing materials by state departments of insurance.
How States Adopt NAIC Model 570
Most states have adopted or adapted Model 570 into their insurance regulations, often with state-specific variations.
Insurers must review each state’s advertising regulation before launching a campaign to ensure compliance.
Find out - state adoption of naic model 570 advertisements of life insurance
Frequently Asked Questions (FAQs)
Q1: What is NAIC Model 570?
A: It’s a model regulation by the National Association of Insurance Commissioners that governs advertisements for life insurance and annuity products to ensure they are truthful and not misleading.
Q2: Who must comply with Model 570?
A: All insurers, agencies, and producers who advertise life insurance or annuity products in any form — print, digital, or broadcast.
Q3: Does Model 570 apply to social media advertising?
A: Yes. Any online or social media content promoting insurance products is subject to the same standards of fairness, clarity, and disclosure.
Q4: What are the penalties for non-compliance?
A: Penalties vary by state and can include fines, suspension of advertising privileges, or license revocation.
Q5: How can insurers stay compliant?
A: By implementing internal compliance workflows, using automated ad review tools, and maintaining thorough documentation of approvals.
Best Practices for Insurance Advertising Compliance
Our recommendation
Create an internal review checklist aligned with Model 570 standards.
Train marketing teams regularly on regulatory expectations.
Maintain an archive of all approved advertisements for audit readiness.
Leverage AI-powered ad review systems - AdSure to automate compliance checks.
