Section 3 AAC 28.576 - Association standards for marketing(a) With respect to the obligations set out in (a) of this section, the primary responsibility of an association, as defined in AS 21.53.200(3)(B), when endorsing or selling long-term care insurance is to educate its members concerning long-term care issues in general so that its members can make informed decisions. An association shall provide objective information regarding long-term care insurance policies or certificates endorsed or sold by the association to ensure that members of the association receive a balanced and complete explanation of the features in the policies or certificates that are being endorsed or sold. The insurer shall file with the division the following material:(1) the policy and certificate;(2) a corresponding outline of coverage; and(3) all advertisements requested by the division.(b) The association shall disclose in any long-term care insurance solicitation the following: (1) the specific nature and amount of the compensation arrangements, including all fees, commissions, administrative fees, and other forms of financial support, that the association receives from endorsement or sale of the policy or certificate to its members; and(2) a brief description of the process under which the policies and the insurer issuing the policies were selected.(c) If the association and the Insurer have interlocking directorates or trustee arrangements, the association shall disclose that fact to its members.(d) The board of directors of an association selling or endorsing long-term care insurance policies or certificates shall review and approve the insurance policies as well as the compensation arrangements made with the insurer.(e) The association shall; (1) at the time of the association s decision to endorse, engage the services of a person with expertise in long-term care insurance not affiliated with the insurer to conduct an examination of the policies, including its benefits, features, and rates, and update the examination thereafter if there is a material change;(2) actively monitor the marketing efforts of the insurer and its agents; and(3) review and approve all marketing materials or other insurance communications used to promote sales or sent to members regarding the policies or certificates.(f) Subsection (e) of this section paragraphs does not apply to qualified long-term care insurance contracts.(g) A group long-term care insurance policy or certificate may not be issued to an association unless the insurer files with the division the information required in this section.(h) The insurer may not issue a long-term care policy or certificate to an association or continue to market a policy or certificate unless the insurer certifies annually that the association has complied with the requirements set out in this section.(i) Failure to comply with the filing and certification requirements of this section constitutes an unfair trade practice in violation of AS 21.36 and AS 21.53.080.Eff. 3/27/2022, Register 241, April 2022Authority:AS 21.06.090
AS 21.36.030
AS 21.53.080
AS 21.53.090
AS 21.53.200