Section 2522.7 - Filing of Sales Materials(a) The word "advertisement," as used in this article, means any advertisement material, illustration, descriptive literature or other sales material of any kind relating to investment annuities. An insurer authorized to transact investment annuity business in this state is responsible for all advertisements of its product and shall not use in this state any advertisement which is false, misleading, deceptive or inaccurate. All investment annuity advertisements shall be filed with the commissioner not less than thirty (30) days prior to use. Revised versions of such filed advertisements shall be filed with the commissioner not less than thirty (30) days prior to use. A filed advertisement may be used if either: (1) thirty (30) days expire without notice from the commissioner that the advertisement is objectionable, or(2) the commissioner prior to that time indicates the advertisement is unobjectionable. The commissioner shall require an insurer to cease the use of any advertisement if any such advertisement is false, misleading, deceptive or inaccurate.(b) All advertisements used in this state relating to investment annuities shall clearly state that the product being advertised is an investment annuity and an insurance product. An investment annuity shall be advertised in the name of the insurer; provided, however, that a life insurance agent appointed to represent the life insurer may advertise investment annuities of such insurer if the advertisement has been approved as to form and content by such insurer and the advertisement discloses the name of the insurer. All agreements between the insurer and the custodian shall provide that the custodian shall not advertise investment annuities.(c) An insurer shall not describe its investment annuity as a "Savings Annuity Plan," "Securities Annuity Plan," "Certificate of Deposit Annuity," a "Tax Saver Plan" or use words or phrases of similar import describing the assets which are on its Accepted Assets List. The insurer may describe its investment annuity as "investment directed," "investment annuity," "personal investment annuity," "retirement investment annuity," or other words or phrases of similar import. The use of any advertisement with the terms "low" or "low plan fees" or "low premiums" is a question of fact which will be determined based upon comparative information filed with the commissioner. Such terms as "tax deferred" or "tax sheltered" investing to provide the basis for future annuity payments may be used; provided, however, that earnings excludable from income tax shall not be described as "tax free." Annuity premiums shall not be described as "fees."(d) All advertisements of investment annuities, other than invitations to inquire, shall contain a specific and complete disclosure explanation of all of the usual and customary charges made by a representative custodian for each type of investment transaction and clearly describe the initial premiums, and annual account market value premiums, and any other type of premium charges payable to the insurer, other than those required to provide benefits, and shall also disclose the amount payable as a sales commission or commissions. The disclosure of the amounts of commissions shall be stated either in dollars or in percentages related to the amount of the annuity purchase contribution or the amount of premium on the annuity purchase contribution. All advertisements must clearly state which charges are payable to the custodian by the policyowner.(e) Illustrations of benefits payable under an investment annuity policy shall not include projections of past investment experience into the future or attempted predictions of future investment experience; provided, however, that nothing contained herein prohibits the use of hypothetical assumed rates of return to illustrate possible levels of benefits if it is clear that such assumed investment rates of return are hypothetical only. Such illustrations, if used, shall be prepared by the insurer or approved by the insurer prior to use. If assumed investment rates are used, at least one illustration must show the results if the net investment rate of return is one-half of the highest assumed investment return.(f) Neither the insurer nor the life insurance agent shall describe or refer to any asset on the Accepted Assets List as assets, investments or securities approved by the Commissioner.(g) Every insurer offering an investment annuity in this State shall establish and maintain a system of control over the content, form, and method of dissemination of all advertisements of its investment annuity policies. All such advertisements, regardless of by whom written, created, designed or presented, shall be the responsibility of the insurer whose policies are so advertised. In addition to filing all such advertisements with this Department, all such advertisements shall be maintained by the insurer for a period of either four (4) years subsequent to use or until the filing of the next regular Report of Examination of the insurer, whichever is the longer period of time.Cal. Code Regs. Tit. 10, § 2522.7