What action during a sales presentation violates the Rules Governing Advertisement of Life Insurance and Annuities?

Referring to guaranteed policy dividends during a sales presentation violates the Rules Governing Advertisement of Life Insurance and Annuities because such statements can be misleading if not presented with the appropriate context. These rules are designed to ensure that advertisements promote clarity and honesty, preventing consumers from being misled by potentially exaggerated claims regarding the financial benefits of insurance policies. Guaranteed dividends imply a certainty that may not be fully supported by the product being offered. Insurers and agents are encouraged to provide clear, fair, and balanced information, which includes disclosing any conditions that could affect the payment of these dividends.

In contrast, the other options involve actions that, while they need careful presentation to avoid misleading the consumer, do not inherently violate advertising rules themselves. Offering discounts on premiums may require specific compliance but can be a legitimate marketing strategy if accurately represented. Discussing the benefits of term insurance provides valuable information and helps clients understand their choices without misleading assurances. Explaining policy exclusions is also crucial because it ensures that consumers are fully aware of what is not covered, promoting transparency in the product offering.