§ 1313 — Contents of advertisements and other public announcements concerning financial condition of insurers

§ 1313. Contents of advertisements and other public announcements\nconcerning financial condition of insurers. (a) (1) Except as provided\nin subsection (g) hereof or permitted by regulation, every advertisement\nor other public announcement published, issued or distributed in this\nstate by any domestic or foreign insurer, a subsidiary thereof, a\nholding company or controlled person as defined by section one thousand\nfive hundred one of this chapter, or by any agent of any of the\nforegoing, purporting to make known the insurer's separate financial\ncondition, shall show the amount of its admitted assets, liabilities and\nreserves required or permitted by law, and its surplus to policyholders,\nand shall correspond with its last verified statement (annual or\nquarterly, at its option) made to the superintendent. Such surplus to\npolicyholders shall show the amount of the insurer's paid up capital\nstock, if any.\n (2) The provisions of paragraph one hereof shall not apply to an\nadvertisement or other public announcement showing only the insurer's\ncapital paid up, or its surplus and capital, if any, separately or\ncombined, but such items shall not be in excess of the corresponding\nitems shown on the insurer's last verified statement (annual or\nquarterly, at its option) made to the superintendent.\n (b) (1) Every advertisement or other public announcement, published,\nissued or distributed in this state by any alien insurer doing business\nin this state, a subsidiary thereof, a holding company or controlled\nperson as defined by section one thousand five hundred one of this\nchapter, or by any agent of any of the foregoing, purporting to make\nknown the separate financial condition of the insurer, shall show as\nassets only its admitted assets held by its United States branch, its\nliabilities and reserves required by law, and its surplus to\npolicyholders in the United States, and shall correspond with the\ninsurer's last verified statement (annual or quarterly, at its option)\nmade to the superintendent. Such surplus to policyholders shall show the\namount of the statutory deposit of such United States branch.\n (2) Notwithstanding the provisions of paragraph one hereof, any\nauthorized life insurance company or fraternal benefit society organized\nunder the laws of Canada or any province thereof may use in its\nadvertising in this state a statement of its complete financial\ncondition, in addition to its statement of admitted assets and\nliabilities in the United States, if a similar domestic insurer is\npermitted by the laws of Canada or the provinces thereof in which it\ndoes an insurance business to advertise therein its complete financial\ncondition on a corresponding basis.\n (c) No statement of separate financial condition shall be published,\nissued or distributed as provided in subsection (a) or (b) hereof unless\nit or a footnote clearly shows the amount of securities, included in\nadmitted assets, which are pledged as collateral for any loan or\nguaranty, or which are otherwise not available to pay losses and claims\nor are not held to protect the insurer's policyholders or creditors.\n (d) No insurer doing business in this state nor any subsidiary\nthereof, or holding company or controlled person as defined in section\none thousand five hundred one of this chapter nor any agent of any of\nthe foregoing, shall in any advertisement or other public announcement\nmake any statement or communication to the effect that the insurer has,\nor expects to have, reinsurance by any named assuming insurer not\nauthorized to do such reinsurance business in this state, or to the\neffect that the insurer's policies are guaranteed wholly or partly by\nany other person, insurer or institution.\n (e) Nothing in this section shall apply to reports issued to\nshareholders or government agencies or instrumentalities by a holding\ncompany or controlled person as defined in section one thousand five\nhundred one of this chapter or prohibit any supplemental reference\nconcerning an insurer's separate financial condition on the basis of\nactual market values of its securities or the inclusion of supplemental\nfactual information with respect to the separate financial condition of\nsuch insurer in a report issued by such insurer to its shareholders or\npolicyholders.\n (f) Advertisements and other public announcements directed primarily\nat calling the attention of policyholders or prospective policyholders\nto an insurer and containing a statement of the separate financial\ncondition of the holding company system shall also contain a statement\nof the separate financial condition of the insurer which shall comply\nwith this section.\n (g) Consolidated financial statements of an authorized insurer and any\nof its subsidiaries may be used only to the extent authorized by the\nsuperintendent or required by any government agency or instrumentality.\n