Current through Reg. 50, No. 13; March 28, 2025
(a) Every issuer
marketing Medicare supplement coverage in this state, directly or through its
agents, shall establish marketing procedures to ensure that:
(1) any comparison of policies by its agents
will be fair and accurate;
(2)
excessive insurance is not sold or issued;
(3) all prospective policyholders are advised
prior to the time an application is taken, that the basic "core" benefit
package is available, including the contents of such basic "core" benefit
package;
(4) every reasonable
effort and inquiry is made 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; and
(5) auditable procedures for verifying
compliance with provisions of this section are in place and utilized.
(b) Every issuer marketing
Medicare supplement coverage in this state, directly or through its agents,
shall ensure that the following notice is prominently displayed by type, stamp,
or other appropriate means on the first page of the policy: "Notice to buyer:
This policy may not cover all of your medical expenses."
(c) In addition to the practices prohibited
in the Insurance Code Chapter 541, the following acts and practices are
prohibited in the marketing of Medicare supplement policies or coverages in
this state.
(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 any 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 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
insurance agent or insurance company. This requirement is in addition to other
regulations applicable to lead card advertising.
(4) Issuers may utilize additional benefit
designations in the marketing of the benefit plans; however, such designations
shall be accompanied by a clear statement as to the applicable benefit plan
being marketed. Additional benefit designations shall not be deceptive or
misleading.
