(a)

1. (1) Testimonials and endorsements used in advertisements must:

   1. (A) Be genuine;
   2. (B) Represent the current opinion of the author;
   3. (C) Be applicable to the policy advertised; and
   4. (D) Be accurately reproduced.
2. (2) The insurer, in using a testimonial or endorsement, makes as its own all of the statements contained therein, and the advertisement, including such statement, is subject to all the provisions of this part.
3. (3) When a testimonial or endorsement is used more than one (1) year after it was originally given, a confirmation must be obtained.

(b) A person shall be deemed a "spokesperson" if the person making the testimonial or endorsement:

1. (1) Has a financial interest in the insurer or a related entity as:

   1. (A) A stockholder;
   2. (B) A director;
   3. (C) An officer;
   4. (D) An employee; or
   5. (E) Otherwise;
2. (2) Has been formed by the insurer or is owned or controlled by the insurer, its employees, or the person or persons who own or control the insurer;
3. (3) Has any person in a policymaking position who is affiliated with the insurer in any of the above described capacities; or
4. (4) Is in any way directly or indirectly compensated for making a testimonial or endorsement.

(c)

1. (1) The fact of a financial interest or the proprietary or representative capacity of a spokesperson shall be:

   1. (A) Disclosed in an advertisement; and
   2. (B) Accomplished in the introductory portion of the testimonial or endorsement in the same form and with equal prominence.
2. (2) If a spokesperson is directly or indirectly compensated for making a testimonial or endorsement, such fact shall be disclosed in the advertisement by language substantially as follows, "Paid Endorsement".
3. (3) The requirement of this disclosure may be fulfilled by use of the phrase "Paid Endorsement" or words of similar import in a type style and size at least equal to that used for the spokesperson's name or the body of the testimonial or endorsement, whichever is larger.

4. (4) In the case of television or radio advertising, the required disclosure must be:

   1. (A) Accomplished in the introductory portion of the advertisement; and
   2. (B) Given prominence.

(e)

1. (1) An advertisement shall not state or imply that an insurer or a disability insurance policy has been approved or endorsed by any individual, group of individuals, society, association, or other organizations, unless such is the fact and unless any proprietary relationship between an organization and the insurer is disclosed.
2. (2) If the entity making the endorsement or testimonial has been formed by the insurer or is owned or controlled by the insurer or the person or persons who own or control the insurer, such fact shall be disclosed in the advertisement.
3. (3) If the insurer or an officer of the insurer formed or controls the association or holds any policymaking position in the association, that fact must be disclosed.

(f)

1. (1) When a testimonial refers to benefits received under a disability insurance policy, the specific claim data, including claim number, date of loss, and other pertinent information shall be retained by the insurer for inspection for a period of four (4) years or until the filing of the next regular report of examination of the insurer, whichever is the longer period of time.
2. (2) The use of testimonials that do not correctly reflect the present practices of the insurer or that are not applicable to the policy or benefit being advertised is not permissible.