Title 3 . Commerce, Community, and Economic Development

Chapter 28 . Miscellaneous

Section 504. Standards for marketing

3 AAC 28.504. Standards for marketing

(a) An issuer directly or through its producers, shall

(1) establish marketing procedures to ensure that any comparison of policies by its agents or other producers will be fair and accurate;

(2) establish marketing procedures to ensure excessive insurance is not sold or issued;

(3) display prominently by type, stamp, or other appropriate means, on the first page of the policy, the following:

Notice to buyer: This policy might not cover all of your medical expenses;

(4) 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 the insurance;

(5) establish auditable procedures for verifying compliance with this subsection.

(b) In addition to the practices prohibited in AS 21.36, the following acts and practices are prohibited:

(1) 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;

(2) making use, directly or indirectly, of any method of marketing that 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, a broker, or an issuer.

(c) The terms "medicare supplement," "medigap," "medicare wrap-around" and words of similar import may not be used unless the policy is issued in compliance with 3 AAC 28.410 - 3 AAC 28.510.

History: Eff. 8/8/90, Register 115; am 7/1/92, Register 122

Authority: AS 21.06.090

AS 21.42.130

AS 21.89.060