(a)  A broker or provider licensed pursuant to this chapter may conduct or participate in advertisements within this state. Such advertisements shall comply with all Rhode Island advertising and marketing laws or rules and regulations promulgated by the commissioner that are applicable to life insurers or to brokers, and providers licensed pursuant to this chapter.

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Terms Used In Rhode Island General Laws 27-72-8

  • Advertisement: means any written, electronic, or printed communication or any communication by means of recorded telephone messages or transmitted on radio, television, the internet or similar communications media, including film strips, motion pictures, and videos, published, disseminated, circulated, or placed before the public, directly or indirectly, for the purpose of creating an interest in or inducing a person to purchase or sell, assign, devise, bequest, or transfer the death benefit or ownership of a life insurance policy or an interest in a life insurance policy pursuant to a life settlement contract. See Rhode Island General Laws 27-72-2
  • Broker: means a person who, on behalf of an owner and for a fee, commission or other valuable consideration, offers or attempts to negotiate life settlement contracts between an owner and provider. See Rhode Island General Laws 27-72-2
  • Commissioner: means the director of the department of business regulation or his or her designee. See Rhode Island General Laws 27-72-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Person: means any natural person or legal entity including, but not limited to, a partnership, limited liability company, association, trust, or corporation. See Rhode Island General Laws 27-72-2
  • Policy: means an individual or group policy, group certificate, contract, or arrangement of life insurance owned by a resident of this state, regardless of whether delivered or issued for delivery in this state. See Rhode Island General Laws 27-72-2
  • Provider: means a person, other than an owner, who enters into or effectuates a life settlement contract with an owner. See Rhode Island General Laws 27-72-2

(b)  Advertisements shall be accurate, truthful, and not misleading in fact or by implication.

(c)  No person or trust shall:

(1)  Directly or indirectly, market, advertise, solicit, or otherwise promote the purchase of a policy for the sole purpose of or with an emphasis on settling the policy; or

(2)  Use the words “free,” “no cost” or words of similar import in the marketing, advertising, soliciting, or otherwise promoting of the purchase of a policy.

(d)  The commissioner is authorized to contract with outside consultants to review advertisements and the total cost of that review shall be borne by, billed directly to, and paid by the provider utilizing or proposing to utilize the advertisement.

History of Section.
P.L. 2009, ch. 195, § 1; P.L. 2009, ch. 262, § 1.