When illustrating dividends, what must an advertisement state?

When illustrating dividends in advertisements, it is essential to clarify that dividends are not guaranteed. This statement is crucial because it ensures that potential policyholders understand the nature of dividends in insurance products, which can fluctuate based on various factors including the insurer's overall performance, investment returns, and claims experience.

The inclusion of this information protects consumers by setting realistic expectations. It emphasizes that while a company may have historically paid dividends, there is no legal obligation to continue doing so in the future. This understanding is part of ethical marketing practices, promoting transparency and preventing misleading interpretations about the financial benefits associated with insurance policies.

While other options may allude to aspects of dividends, they do not encapsulate the necessity of explicitly stating the lack of guarantee, which is fundamental in safeguarding consumers’ interests and fostering an informed decision-making process.