Cap. 403 Art. 48Insurance advertisements.

(1) No insurance undertaking authorised under this Act shall issue or cause to be issued any advertisement or carry out or cause to be carried any promotional activity related to the business of insurance which misleads, or directly or by implication is likely to mislead, or deceive any prospective policyholder, or the insurance sector in general, or the general public with respect to its assets or corporate structure or financial standing or authorisation or any other material respect:

Provided that, in the case of an undertaking whose head office is in Malta, the provisions of this sub-article shall also apply with respect to -

(a) an advertisement issued or caused to be issued; and

(b) a promotional activity as aforesaid carried out or caused to be carried out, from Malta or in or from a country outside Malta.

(2) The competent authority may by Conduct of Business Rules made for the purposes of this article determine the form and content of insurance advertisements and make different provision in relation to insurance advertisements of different classes or part classes or descriptions; and the manner in which any promotional activity as aforesaid shall be carried out or caused to be carried out.

(3) The provisions of sub-article (2) shall not apply to an undertaking if its business is restricted to reinsurance.

(4) Where an undertaking issues or causes to be issued an advertisement or carries out or causes to be carried out any promotional activity which is in breach of or does not comply with any of the provisions of sub-article (1) or (2), the competent authority may issue an order directing the undertaking -

(a) to withdraw, wholly or partly, the advertisement or promotional activity; or

(b) to amend any particular of the advertisement or promotional activity; or

(c) to do such other thing as it deems appropriate in the circumstances.

(5) If an undertaking refuses or fails to comply with any order issued by the competent authority under sub-article (4) or refuses or fails to comply with such order within the time specified therein, without prejudice to any penalty which the undertaking may incur under this Act, the competent authority shall have the power to enforce, at the expense of the undertaking concerned, the order issued by it under that sub-article.