NU Online News Service, Aug. 11, 2:04 p.m. EDT
The use of social media by surplus lines insurers and agents to promote business is advertising, a legal expert explains in a National Underwriter special feature this week.
In the lead article of this week's edition of NU's E&S/Specialty Lines Extra, Susan T. Stead, a partner at Nelson Levine de Luca & Horst, notes that while the casual nature of social media sites, such as Facebook and LinkedIn, might suggest otherwise, the use of social media is subject to state insurance laws that govern advertising and unfair trade practices.
"Although people often think of surplus lines insurance as an unregulated part of the industry, the reality is that many states have specific advertising restrictions for surplus lines insurance and unfair trade practices laws that apply. Those in the surplus lines market who take advantage of social media to promote their insurance business need to be aware of these laws," she writes.
In this article, available at http://www.property-casualty.com/Exclusives/2010/8/Pages/Social-Media-And-Surplus-Lines.aspx, Ms. Stead reviews the restrictions of various states.
The entire Aug. 9 edition of NU's E&S/Specialty Lines Extra e-newsletter– also featuring articles on directors and officers liability and securities litigation trends, including a feature discussing recent D&O policy enhancements covering the escalating costs of informal regulatory investigations–is available at http://www.property-casualty.com/Newsletters/ESextra/Pages/August-9-2010.aspx.
To sign up to receive the E&S e-newsletter in your inbox every two weeks, go to the e-newsletters link on National Underwriter P&C's website, www.property-casualty.com.
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