Okla. Admin. Code § 365:10-5-48.2

Current through Vol. 42, No. 8, January 2, 2025

Section 365:10-5-48.2 - Standards for marketing

(a)Marketing requirements. Every insurer, health care service plan or other entity marketing long-term care insurance coverage in this state, directly or through its producers, shall:

(1) Establish marketing procedures to assure that any comparison of policies by its agents or other producers will be fair and accurate.

(2) Establish marketing procedures to assure excessive insurance is not sold or issued.

(3) Display prominently by type, stamp or other appropriate means, on the first page of the outline of coverage and policy the following: Notice to buyer: This policy may not cover all of the costs associated with long-term care incurred by the buyer during the period of coverage. The buyer is advised to review carefully all policy limitations.

(4) Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for long-term care insurance already has accident and sickness or long-term care insurance and the types and amounts of any such insurance.

(5) Establish audible procedures for verifying compliance with this subsection (a).

(6) If the state in which the policy or certificate is to be delivered or issued for delivery has a senior insurance counseling program approved by the Commissioner, provide written notice to the prospective policyholder and certificateholder, at solicitation, that such a program is available and the name, address and telephone number of the program.

(7) For long-term care health insurance policies and certificates, use the terms "noncancellable" or "level premium" only when the policy or certificate conforms to 365:10-5-43(a)(3).

(b)Prohibited marketing practices. In addition to the practices prohibited in 36 O.S. § 1201 et seq., the Unfair Practices and Frauds Act, 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 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.

(4) Misrepresenting a material fact in selling or offering to sell a long-term care insurance policy.

(c)Endorsement, filing and disclosure requirements.

(1) With respect to the obligations set forth in this subsection, the primary responsibility of an association, as defined in 36 O.S. § 4424(4)(b), when endorsing or selling long-term care insurance shall be to educate its members concerning long-term care issues in general so that its members can make informed decisions. Association shall provide objective information regarding long-term care insurance policies or certificates endorsed or sold by such associations to ensure that members of such associations receive a balanced and complete explanation of the features in the policies or certificates that are being endorsed or sold.

(2) The insurer shall file with the insurance department the following material:

(A) The policy and certificate,

(B) A corresponding outline of coverage, and

(C) All advertisements requested by the insurance department.

(3) The association shall disclose in any long-term care insurance solicitation:

(A) 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

(B) A brief description of the process under which such policies and the insurer issuing such policies were selected.

(4) If the association and the insurer have interlocking directorates or trustee arrangements, the association shall disclose such fact to its members.

(5) The board of directors of associations selling or endorsing long-term care insurance policies or certificates shall review and approve such insurance policies as well as the compensation arrangements made with the insurer.

(6) The association shall also:

(A) 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 such examination thereafter in the event of material change;

(B) Actively monitor the marketing efforts of the insurer and its agents;

(C) Review and approve all marketing materials or other insurance communications used to promote sales or sent to members regarding such policies or certificates.

(7) No group long-term care insurance policy or certificate may be issued to an association unless the insurer files with the State Insurance Department the information required in this subsection (c).

(8) The insurer shall not issue a long-term care policy or certificate to an association or continue to market such a policy or certificate unless the insurer certifies annually that the association has complied with the requirements set forth in this subsection (c).

(9) Failure to comply with the filing and certification requirements of this section constitutes an unfair trade practice in violation of 36 O.S. § 1201 et seq.

Okla. Admin. Code § 365:10-5-48.2

Added at 10 Ok Reg 397, eff 11-12-92 (emergency); Added at 10 Ok Reg 3033, eff 7-15-93; Amended at 11 Ok Reg 1843, eff 5-15-94; Amended at 18 Ok Reg 1277, eff 7-14-01