(1) An issuer,
directly or through its producers, shall:
(a)
Establish marketing procedures to assure that any comparison of policies by its
agents or other producers will be fair and accurate.
(b) Establish marketing procedures to assure
excessive insurance is not sold or issued.
(c) Display prominently by type, stamp or
other appropriate means, on the first page of the policy the following:
"Notice to buyer: This policy may not cover all of your
medical expenses."
(d)
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
insurance.
(e) Establish auditable
procedures for verifying compliance with this Paragraph.
(2) In addition to the practices prohibited
in T.C.A. §§
56-8-101
et seq., the following acts and practices are prohibited:
(a) 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 an insurance policy or to take out a policy of insurance with another
insurer.
(b) 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.
(c) 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.
(3) 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 Chapter.
