3 AAC 28.575 - Standards for marketing

(a) 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 and agent training requirements to assure that

(A) marketing activities, including a comparison of policies, by its agents or other producers will be fair and accurate; and

(B) excessive insurance is not sold or issued;

(2) 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.";

(3) provide copies of the disclosure forms required in 3 AAC 28.556(f) to the applicant;

(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 insurance, except that in the else of qualified long-term care insurance contracts, an inquiry into whether a prospective applicant or enrollee for long-term care insurance has accident-and-sickness insurance is not required;

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

(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 director, provide written notice at solicitation to the prospective policyholder and certificate holder that the 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 3 AAC 28.552(a)(3) or (4), as applicable; and

(8) provide an explanation of contingent benefit upon lapse provided for in 3 AAC 28.582(d) and, if applicable, the additional contingent benefit upon lapse provided to policies with fixed or limited premium paying periods in 3 AAC 28.582(d)(2).

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

(1) high-pressure tactics; in this paragraph, "high-pressure tactics" means employing a 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; and

(2) cold-lead advertising; in this paragraph, "cold-lead advertising" means making use, directly or indirectly, of a 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 or insurance company.

Notes

3 AAC 28.575

Eff. 3/27/2022, Register 241, April 2022

Authority:AS 21.06.090

AS 21.36.030

AS 21.53.080

AS 21.53.090

AS 21.53.200