In terms of marketing regulations, what can insurers NOT do to attract customers?

Insurers are prohibited from using misleading information or aggressive sales tactics as this undermines the integrity of the insurance marketplace and can lead to consumer distrust. Marketing regulations are designed to ensure that customers receive honest and accurate information about insurance products, enabling them to make informed decisions. Misleading information can include false claims about coverage, exaggerating benefits, or downplaying drawbacks. Aggressive sales tactics may involve high-pressure sales techniques that coerce consumers into purchasing policies without a full understanding of what they entail.

In contrast, offering discounts for new customers, sponsoring community events, and providing clear information on coverage options are all acceptable practices. Discounts can serve as an incentive for customers to choose a particular insurance provider, while community sponsorship enhances brand visibility and goodwill. Clear information on coverage options is essential for transparency and helps customers compare different offerings effectively.