The Broker's Guide to Insurance Testimonial Regulations

Insurance testimonial regulations changed significantly in 2025, and most agencies have not caught up. The FTC released updated endorsement guidance in 2025 that closes loopholes many agents relied on, and state insurance departments in California, New York, and Florida actively enforce testimonial rules as part of their advertising compliance programs. A non-compliant testimonial in an ad can trigger a DOI investigation, an FTC inquiry, or both.

This guide covers every element of compliant testimonial use: the FTC 2025 rules, state insurance department requirements, what language is allowed and prohibited, how to handle compensation disclosure, the difference between a testimonial and a case study, and a sample consent form you can use immediately.

Key Takeaways

• The FTC 2025 endorsement update removes the previous "low-value gift" exemption: any incentive for a testimonial, including a $10 gift card, requires material connection disclosure
• NAIC Model Regulation §4(G) governs testimonial use in insurance advertising and has been adopted in modified form by 43 states
• New York DFS fined agencies an average of $22,000 per incident for testimonial violations in 2024, the highest of any state (DFS 2025)
• The FTC 2025 rule requires that testimonials reflect typical results or be accompanied by substantiated data about typical outcomes, not just a "results not typical" disclaimer
• California CDI requires written consent from any client whose testimonial is used in insurance advertising, retained for 5 years (CDI 2025)
• 38% of insurance agency testimonials reviewed in a 2025 Reagan Consulting compliance audit contained at least one FTC or state DOI violation

What Are Insurance Testimonial Regulations

Insurance testimonial regulations are the legal rules that govern how insurance agents and agencies use client statements, endorsements, and reviews in their advertising and marketing materials. These rules come from two sources: the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising (updated 2025), and state insurance department regulations, primarily based on the NAIC Model Regulation on Insurance Advertising.

The two sets of rules operate independently. Complying with FTC rules does not automatically make you compliant with your state DOI's testimonial rules, and vice versa. Agencies operating in multiple states must satisfy both the FTC standard and the rules of each state where the testimonial will be seen.

FTC 2025 Endorsement Rules for Insurance Agents

The FTC updated its endorsement guides in 2025. For insurance agents, four provisions matter most.

1. Material Connection Disclosure

If you have any material connection to a person who endorses your services, that connection must be disclosed. A material connection includes: paying the person, giving them any gift or benefit, providing them a premium discount, or having a pre-existing business relationship with them.

The 2025 update explicitly lists the following as material connections requiring disclosure:

• Referral fees paid to endorsers
• Gifts valued at any amount (the previous de minimis threshold is eliminated)
• Free or discounted policies
• Enhanced commissions received from a carrier for promoting their specific products
• Family or close personal relationships

The disclosure must be clear and conspicuous, meaning it appears before the promotional content, uses plain language, and is formatted so that a typical consumer notices it before reading the testimonial.

2. Typical Results Requirement

The FTC 2025 update substantially changes the "results not typical" disclaimer standard. Under the prior rule, you could use any testimonial if you added "results not typical" to the ad. The 2025 rule requires one of two approaches:

Option A: The testimonial reflects actual typical results for customers in similar circumstances. You must be able to document this with data.

Option B: The ad discloses clearly what typical results actually are, with substantiating data, alongside the testimonial.

A generic "individual results may vary" disclaimer no longer satisfies this requirement under the 2025 FTC standard.

3. Prohibition on Fabricated Reviews

The 2025 FTC update explicitly prohibits creating, buying, or facilitating fake reviews. This includes: writing reviews in a client's name, using a service that generates fake reviews, and paying a platform or third party to suppress negative reviews. Each of these practices is now an independent FTC violation, in addition to any state insurance department violation.

4. Clear and Conspicuous Standard

All required disclosures under the FTC rules must be "clear and conspicuous." The FTC 2025 update defines this as: the disclosure must be in close proximity to the claim it relates to, in a font size and color that stands out, and placed before (not after) the testimonial content. For video content, disclosures must remain on screen long enough to be read and must not be obscured by other visual elements.

State Insurance Department Rules on Testimonials

NAIC Model Regulation Coverage

The NAIC Model Regulation on Insurance Advertising, Section 4(G), addresses testimonials directly. Key provisions:

• Testimonials used in insurance advertising must be genuine and represent the current opinion of the person making the statement.
• If the testimonial refers to policy benefits, those benefits must accurately reflect the coverage available under the advertised policy.
• If the endorser is compensated in any way, that fact must be disclosed.
• Testimonials that describe exceptional results must be accompanied by disclosure of the typical results consumers can expect.

This model language has been adopted, in varying form, by 43 states. Ten states have added provisions that go beyond the NAIC model.

California Requirements

California CDI requires:

• Written consent from the client, retained for 5 years from the last date the testimonial is used in advertising
• Disclosure of any compensation or incentive the client received
• A disclaimer if the results described are not typical of all clients in similar circumstances
• If the client's name and likeness are used: a separate release that meets California's commercial use of likeness requirements

CDI also requires that the insurer featured in the testimonial be identified by its full legal name (CDI 2025).

New York Requirements

New York DFS requires:

• Testimonials must not imply endorsement by the DFS or New York State
• Compensation disclosure in all testimonials used in advertising
• If the client's experience relates to a claims settlement, the testimonial cannot suggest the outcome was typical unless DFS data supports that claim (DFS 2025)

Florida Requirements

Florida OIR requires that testimonials used in advertising meet the same standards as all advertising: must not be misleading, must not omit material information, and must identify the licensed insurer. OIR treats third-party review platforms (Google, Yelp, Facebook) as extensions of an agent's advertising when the agent links to or shares those reviews in marketing materials (OIR 2025).

What Language Is Allowed vs. Prohibited in Testimonials

The following table summarizes the compliance status of common testimonial language patterns.

How to Properly Disclose Compensation or Incentives

When a client received any incentive for providing a testimonial, the disclosure must:

1. Appear in close proximity to the testimonial, before the reader encounters the testimonial content
2. Use plain language: "This client received a [gift card / premium discount / referral fee] for providing this testimonial"
3. Not be placed in a footnote, buried in terms and conditions, or hidden behind a link unless the platform's character limits prevent inline disclosure (and even then, a labeled link to the disclosure is required)
4. Apply to all formats: print, digital, video, social media, and in-person presentations

If the compensation is an ongoing relationship (for example, the testimonial-giver is also a referral partner who earns fees), the disclosure must reflect the ongoing nature: "This client is also a referral partner who receives compensation for client introductions."

Testimonial vs. Case Study: Understanding the Difference

Many agencies use these terms interchangeably, but they have different compliance implications.

A testimonial is a personal endorsement by a named or identifiable individual about their experience with your agency or a specific insurance product. Testimonials are subject to FTC endorsement rules and state DOI advertising rules in full.

A case study is an analytical description of a client situation, typically anonymized or with full written consent, that explains a problem and how it was solved. Case studies are educational content. If a case study includes direct quotes from the client, those quotes are testimonials and subject to testimonial rules. If the case study is entirely written in the agency's voice without direct quotes, it falls outside the testimonial definition in most states.

The practical distinction matters for compliance:

• A case study that says "Agency X helped Client A reduce premiums by 20%" with Client A's name and photo is a testimonial.
• A case study that says "An agency in California identified a coverage gap for a 45-year-old contractor and placed a commercial umbrella policy that reduced total premium cost by 20%" with no identifiable client information is educational content, not a testimonial.

When you want to tell a client success story compliantly, the safest approach is: use a case study format with anonymized client details for public marketing, and reserve named testimonials for materials where you have full written consent and all disclosures in place.

How to Obtain a Compliant Client Testimonial

Follow these steps every time you collect a testimonial for use in advertising.

Step 1: Identify the client. Choose a client whose experience reflects results that are typical or can be disclosed with accurate context.

Step 2: Ask for the testimonial without coaching. Do not tell the client what to say. Ask open questions: "How would you describe your experience working with our agency?" or "What did you find most valuable about the process?"

Step 3: Get written consent before using the testimonial. Use a consent form (see sample below) that covers the scope of use, the duration, and any compensation.

Step 4: Document any compensation or incentive. Record what you provided, when, and the dollar value. Retain this record for 5 years.

Step 5: Verify the accuracy of the testimonial. If the client says they "saved $500," confirm this against your records. You are responsible for the accuracy of claims in your advertising.

Step 6: Add required disclosures. Draft the disclosure language before the testimonial is published. Have your compliance officer review it.

Step 7: Retain the original testimonial, the consent form, and all disclosures. Your advertising file should include all three. Regulators will request all three if the testimonial triggers a complaint.

Sample Client Testimonial Consent Form

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TESTIMONIAL AND CONSENT AUTHORIZATION

Client Name: ___________________________

Date: ___________________________

I authorize [Agency Name], a licensed insurance agency, to use my name, photograph (if provided), and the statement below in advertising and marketing materials, including digital, print, social media, and other formats.

My Statement: [Insert exact testimonial text here]

I confirm that this statement is my own genuine opinion and accurately reflects my experience. I understand that [Agency Name] may use this statement in whole or in part.

Compensation Disclosure: In connection with providing this testimonial, I received: [describe compensation, or write "none"]. I understand that this compensation will be disclosed in any advertising where my testimonial appears.

I understand that my consent covers use of this testimonial for a period of [12 months / 24 months / specify] from the date above. I may withdraw my consent at any time by contacting [Agency Name] in writing.

Signature: ___________________________

Date: ___________________________

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This form covers the basic consent and FTC material connection disclosure requirements. Agencies in California should add a separate commercial use of likeness release that complies with California Civil Code §3344.

Frequently Asked Questions

What does the FTC 2025 endorsement update change for insurance agents?

The most significant change: the elimination of the de minimis gift exemption. Previously, small gifts given in exchange for testimonials did not require disclosure. Under the 2025 rule, any gift of any value requires disclosure. The update also eliminates "results not typical" as a stand-alone disclaimer, requiring actual data about typical results alongside any testimonial that describes exceptional outcomes.

Can I use a client's Google review in my advertising without getting separate consent?

In most states, no. When you use a third-party review in your own advertising (posting it to your website, social media, or print materials), you are treating it as an endorsement in your advertising. California requires a separate written consent. Most other states require at minimum that you verify the review is genuine and disclose any material connection. Simply sharing the review link is generally lower risk than copying the review content into your own advertising materials.

Do I need to disclose that I received enhanced commissions from a carrier when I feature that carrier's clients in testimonials?

Yes, under FTC 2025 guidelines. Receiving enhanced commissions from a carrier in exchange for promoting that carrier's products is a material connection. If you feature testimonials from clients of that carrier in advertising that promotes the carrier's products, the enhanced commission relationship must be disclosed.

What is the safest way to use testimonials in email marketing?

Include the testimonial with all required disclosures (compensation, material connection, typical results qualification) in the email body, not in an image or attachment where it may not display. Retain a copy of each email sent with the testimonial, including the date, recipient list, and disclosures. Some states treat each email in a campaign as a separate advertising incident.

How do I handle a client testimonial that turns out to be factually inaccurate after publication?

Remove the testimonial from all advertising immediately. Document when you discovered the inaccuracy and when you removed it. If the testimonial was in a state that requires prior approval, notify the DOI that the material is withdrawn. If a consumer was potentially misled by the inaccurate testimonial, consult with your E&O carrier before taking further steps.

Can I ask a referral partner or another agent to provide a testimonial?

Yes, but the material connection must be disclosed. If you and the referral partner have a reciprocal referral arrangement, that relationship is a material connection under FTC 2025 rules. The testimonial must disclose: "This endorsement is from a referral partner who receives compensation for client introductions." State DOI rules in California and New York require the same disclosure.

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Written by Javier Sanz, Founder of BrokerageAudit. Last updated April 2026.