Ala. Admin. Code r. 482-1-071-.20

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

Section 482-1-071-.20 - Standards For Marketing

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.

Ala. Admin. Code r. 482-1-071-.20

New Rule: September 18, 1981; effective January 1, 1982. Revised: November 14, 1986; effective February 14, 1987. Revised: March 5, 1992; effective March 15, 1992. Revised: March 12, 1996; effective March 25, 1996. Revised: October 22, 1998; effective January 1, 1999. Revised: April 28, 1999; effective July 1, 1999. Revised: June 30, 2003; effective July 21, 2003. Filed with LRS July 11, 2003. Rule is not subject to the Alabama Administrative Procedure Act. Revised: December 16, 2009; effective January 1, 2010. Filed with LRS December 17, 2009. Rule is not subject to the Alabama Administrative Procedure Act.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-19-50 et seq.