Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-071 - MEDICARE SUPPLEMENT INSURANCE MINIMUM STANDARDS REGULATION
Section 482-1-071-.20 - Standards For Marketing
Universal Citation: AL Admin Code R 482-1-071-.20
Current through Register Vol. 42, No. 5, February 29, 2024
A. An issuer, directly or through its producers, shall:
(1) Establish marketing procedures that are
not false or deceptive and which assure that marketing materials used have
received prior approval of the Commissioner as required.
(2) Establish marketing procedures to assure
that any comparison of policies by its agents or other producers will be fair
and accurate.
(3) Establish
marketing procedures to assure excessive insurance is not sold or
issued.
(4) Display prominently by
type, stamp or other appropriate means, on the first page of the policy the
following:
"Notice to buyer: This policy may not cover all of your medical expenses."
(5) Inquire and otherwise make every
reasonable effort to identify whether a prospective applicant or enrollee for
Medicare supplement insurance already has accident and sickness insurance and
the types and amounts of any such insurance.
(6) Establish auditable procedures for
verifying compliance with this Subsection A.
B. In addition to the practices prohibited in Section 27-12-1, et seq., Code of Ala. 1975, as amended, the following acts and practices are prohibited:
(1)
Twisting. Knowingly making any misleading representation or incomplete or
fraudulent comparison of any insurance policies or insurers for the purpose of
inducing, or tending to induce, any person to lapse, forfeit, surrender,
terminate, retain, pledge, assign, borrow on, or convert an insurance policy or
to take out a policy of insurance with another insurer.
(2) High pressure tactics. Employing any
method of marketing having the effect of or tending to induce the purchase of
insurance through force, fright, threat, whether explicit or implied, or undue
pressure to purchase or recommend the purchase of insurance.
(3) Cold lead advertising. Making use
directly or indirectly of any method of marketing which:
(a) Has not been submitted to the
Commissioner in accordance with
482-1-071-.19;
(b) Fails to disclose in a conspicuous manner
that a purpose of the method of marketing is solicitation of insurance and that
contact will be made by an issuser or insurance producer or another acting on
behalf of the insurer or producer;
(c) Fail to identify the issuer or insurance
producer; or
(d) Uses the seal or
other identifying mark of any state or federal agency or is otherwise designed
or formatted so as to create an impression that the issuer, insurance producer
or Medicare supplement policy is approved, endorsed or accredited by any
governmental agency or entity.
C. The terms "Medicare Supplement," "Medigap," "Medicare Wrap-around" and words of similar import shall not be used unless the policy is issued in compliance with this chapter.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-19-50 et seq.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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