issuer, directly or through its producers, shall do the following:
(1) Establish marketing procedures to assure
that any comparison of policies by its agents or other producers will be fair
marketing procedures to assure excessive insurance is not sold or
(3) Establish marketing
procedures which set forth a mechanism or formula for determining whether a
replacement policy or certificate is truly in the best interest of the
by type, stamp, or other appropriate means, on the first page of the policy,
"Notice to buyer: This policy may not cover all of your
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 any such
(6) Establish auditable
procedures for verifying compliance with this subsection.
In addition to the practices prohibited
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
(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
(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.
(c) The terms "Medicare supplement",
"Medigap", "Medicare wrap-around", and words of similar import shall not be
used unless the policy is issued in compliance with this article.