Which scenario would violate Texas advertising requirements for insurance?

• A. Including a license number in the ad
• B. Stating that a policy covers all losses without exclusions
• C. Providing clear coverage terms and disclaimers
• D. Mentioning premium costs accurately

Answer: (B)

Advertising insurance in Texas must be truthful and not misleading. The key idea is that promotions cannot promise or imply coverage beyond what the policy actually provides.

Claiming that a policy covers all losses without exclusions would violate this rule because no insurance policy covers every possible loss; there are always exclusions, limits, and deductibles. Presenting universal coverage with no exclusions would mislead consumers about what is truly insured, which advertising rules forbid.

Other scenarios fit the rules: including a license number helps prove the advertiser is properly licensed; presenting clear coverage terms and disclaimers helps clarify what is and isn’t covered; and accurately mentioning premium costs aligns with requirements to be honest about pricing.