What is the role of advertising disclosures in annuities?

• A. To mislead customers
• B. To ensure claims are clearly labeled and include required disclaimers
• C. To prevent misrepresentation and ensure claims are accurate with required disclaimers
• D. To increase sales

Answer: (C)

Advertising disclosures serve to prevent misrepresentation and ensure that claims about annuities are accurate and accompanied by the required disclaimers. Because annuities involve complex features—fees, surrender charges, guarantees, and illustrated values based on assumptions—the disclosures provide the truthful context, clarifying what is guaranteed, what is variable, and the assumptions behind any illustrated numbers. This transparency helps consumers compare products, understand potential benefits and risks, and prevents marketing from overstating results or omitting important costs. The aim is not to boost sales, but to ensure advertising is truthful, compliant, and not misleading.