California Senate Bill 620 enacted additional restrictions on advertising practices for life and annuity sales that target senior citizens. Several of the Bill's sections, which have different effective dates, will impact GTL's marketing efforts in California.

1. The following sections of the Bill are applicable to agents marketing life insurance to senior citizens over the age of 65:
1. (Pre-meeting) Advance Notice Requirements (NEW)
   EFFECTIVE 1/1/2004
   
   This applies to the sale, offering for sale, or generation of leads for the sale of life insurance, including annuities, to senior insureds or prospective insureds by any person.
   
   Any person who meets with a senior in the senior's home is required to deliver a notice in writing to the senior no less than 24 hours prior to that individual's initial meeting in the senior's home. If the senior has an existing insurance relationship with an agent and requests a meeting with the agent in the senior's home the same day, a notice shall be delivered to the senior prior to the meeting. (Please refer to attached Notice.)
   
   Upon contacting the senior in the senior's home, the person shall, before making any statement other than a greeting, or asking the senior any other questions, state that the purpose of the contact is to talk about insurance, or to gather information for a follow-up visit to sell insurance, if that is the case, and state all of the following information:
   
   (1) The name and titles of all persons arriving at the senior's home.
   (2) The name of the insurer (Guarantee Trust Life Insurance Company) represented by the person.
   
   Each person attending a meeting with a senior shall provide the senior with a business card or other written identification stating the person's name, business address, telephone number, and any insurance license number.
   
   The persons attending a meeting with a senior shall end all discussions and leave the home of the senior immediately after being asked to leave by the senior.
   
   A person may not solicit a sale or order for the sale of an annuity or life insurance policy at the residence of a senior, in person or by telephone, by using any plan, scheme, or ruse that misrepresents the true status or mission of the contact.
   
   
2. Advertising Restrictions on Life / Annuity Sales to Person Age 65 and older.
   EFFECTIVE DATE: 1/1/2004
   
   The following sections of existing law were amended to include life and annuity sales. (Underscore indicates change)
   
   (AMENDED) No insurer, agent, broker, solicitor, or other person or other entity shall solicit persons age 65 and older for the purchase of disability insurance, life insurance, or annuities through the use of a true or fictitious name which is deceptive or misleading with regard to the status, character, or proprietary or representative capacity of the entity or person, or to the true purpose of the advertisement.
   
   (AMENDED) For the purposes of this section, an advertisement includes envelopes, stationery, business cards, or other materials designed to describe and encourage the purchase of a policy or certificate of disability insurance, life insurance, or an annuity.
   
   (NEW) No advertisement for an event where insurance products will be offered for sale may use the terms "seminar," "class," "informational meeting," or substantially equivalent terms to characterize the purpose of the event unless it adds the words "and insurance sales presentation" immediately following those terms in the same type size and font as those terms.
   
   
3. (NEW) "Insurance" Disclosure on Printed Materials
   Effective January 1, 2005
   Every licensee (agent, broker, solicitor, etc ...) shall prominently affix, type, or print on business cards, written price quotations for insurance products, and print advertisements, distributed in California for insurance products, the word "Insurance" in type size no smaller than the largest indicated telephone number.
   
   
2. The following section of the Bill is applicable to Commission Payments (NEW)
   EFFECTIVE 1/1/2004

This section is limited to prohibiting sharing commissions or other compensation with attorneys that are not active members of the California State Bar.