Current through Register Vol. XLI, No. 38, September 20, 2024
15.1. Generally.
(a) An advertisement of an individual policy shall
not directly or by implication represent that a contract or combination of contracts
is an introductory, initial or special offer, or that applicants will receive
substantial advantages not available at a later date, or that the offer is available
only to a specified group of individuals, unless such is the fact. An advertisement
shall not contain phrases describing an enrollment period as "Special," "Limited,"
or similar words or phrases when the insurer uses such enrollment periods as the
usual method of advertising accident and sickness insurance.
(b) An enrollment period during which a particular
insurance product may be purchased on an individual basis shall not be offered
within this State unless there has been a lapse of not less than six (6) months
between the close of the immediately preceding enrollment period for the same
product and the opening of the new enrollment period. The advertisement shall
indicate the date by which the applicant must mail the application which shall be
not less than ten (10) days and not more than forty (40) days from the date that
such enrollment period is advertised for the first time. This section applies to all
advertising media, i.e., mail, newspapers, radio, television, magazines and
periodicals, used by any one (1) insurer. This section is inapplicable to
solicitations of employees or members of a particular group or association which
otherwise would be eligible under specific provisions of the Insurance Code for
group, blanket or franchise insurance. The phrase "Any One Insurer" includes all the
affiliated companies of a group of insurance companies under common management or
control.
(c) This section prohibits any
statement or implication to the effect that only a specific number of policies will
be sold, or that a time is fixed for the discontinuance of the sale of the
particular policy advertised because of special advantages available in the policy,
unless such is the fact.
(d) The phrase
"A Particular Insurance Product" in Paragraph (b) of this section means an insurance
policy which provides benefits substantially different from those contained in any
other policy. Different terms of renewability; an increase or decrease in the dollar
amounts of benefits; an increase or decrease in any elimination period or waiting
period from those available during an enrollment period for another policy shall not
be sufficient to constitute the product being offered as a different product
eligible for concurrent or overlapping enrollment periods.
15.2. Reduced initial premium. -- An advertisement
shall not offer a policy which utilizes a reduced initial premium rate in a manner
which overemphasizes the availability and the amount of the reduced initial premium.
When an insurer charges an initial premium that differs in amount from the amount of
the renewal premium payable on the same mode, the advertisement shall not display
the amount of the reduced initial premium either more frequently or more prominently
than the renewal premium, and both the reduced initial premium and the renewal
premium must be stated in juxtaposition in each portion of the advertisement where
the reduced initial premium appears.
15.3. Special awards. -- Special awards, such as a
"Safe Drivers' Award" shall not be used in connection with advertisements of
accident or accident and sickness insurance.
