Ala. Admin. Code r. 482-1-079-.07 - Merchandising And Agents' Licensing

(1) The manner of merchandising enrollee contracts must be fully explained by the HMO prior to certification and any subsequent changes in this area must be approved by the Commissioner before use. All salesmen or representatives of the HMO engaged in soliciting enrollees are bound by the advertising rules previously noted. The HMO is responsible for the acts of its agents in soliciting enrollees.

(2) Each sales agent or other representative of an HMO shall satisfactorily pass the examination given by the Commissioner and shall be licensed as a disability agent after meeting qualifications for being examined as a disability agent or otherwise comply with the requirements for being licensed as an agent under Chapter 7, Title 27 Code of Ala. 1975 before representing the HMO in its sales and merchandising activities. Any HMO which pays any commissions to an unlicensed agent or representative shall remit upon demand by the Commissioner a fine of three times the commission paid the agent with the fine not to exceed the total of $5,000.

Author: Commissioner of Insurance

Notes

Ala. Admin. Code r. 482-1-079-.07

New Rule: Filed April 22, 1987; effective May 8, 1987. Filed for codification in the Alabama Administrative Code by the Department of Insurance on April 23, 2004, pursuant to the Code of Ala. 1975, § 27-7-43. Revised: August 13, 2004; effective August 27, 2004. Filed with LRS August 17, 2004. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-21A-19.