Ala. Admin. Code r. 482-1-013-.16

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-013-.16 - Introductory, Initial, Special Offers Or Limited Enrollment Periods

(1) An advertisement shall not state or imply that enrollment in a plan or under a policy is limited to a specific period unless the period of time to enroll is disclosed, or that a particular policy or combination of policies is an introductory, initial or special offer and that the applicant will receive advantages by accepting the offer, unless such is the fact. If the advertisement is a special enrollment offer, the advertisement shall indicate the date by which the applicant must mail the application which shall be not less than ten days and not more than forty days from the date that such limited enrollment period is advertised for the first time. An insurer shall not use an introductory offer of a reduced initial premium for the first month of coverage under a renewable policy at a lesser amount than for the initial renewal monthly premium.

(2) Ninety Days Between Enrollment Periods. A limited enrollment period within which a particular insurance product may be purchased on an individual basis shall not be offered within a specified geographical area in this State unless there has been a lapse of not less than ninety days between the close of the immediately preceding limited enrollment period for the same product in the same geographical area and the opening of the new limited enrollment period. This ninety-day rule applies to all advertising media, i.e., mail, newspapers, radio, television, magazines and periodicals, by any one insurer. It 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 (selected group) insurance if such franchise insurance is provided in accordance with the provisions of Section 27-19-37.

(3) Out of State Publications Circulated in this State. Advertising in magazines, periodicals and newspapers printed and published in other states and circulated in this State shall comply with the ninety-day rule applicable to publications originating in this State; however, such advertising is not subject to the geographical area limitations specified in Paragraph (2) of this rule.

Author: John Davis, Associate Counsel

Ala. Admin. Code r. 482-1-013-.16

New Rule: August 1, 1957; effective August 1, 1957. Revised: October 26, 1972; effective November 9, 1972. Revised: January 16, 2003; effective January 26, 2003. Filed with LRS January 16, 2003. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-12-1, etseq.