In order to prevent unfair methods of insurance sales to
active duty service members of the United States armed forces, unfair
competition, and unfair or deceptive acts or practices by insurers, fraternal
benefit societies, or insurance producers, WAC
284-30-850 through
284-30-872 are adopted. These
rules may be called the "military sales practices" rules.
(1) The Military Personnel Financial Services
Protection Act (
P.L.
109-290) was enacted by the 109th Congress to
protect members of the United States armed forces from unscrupulous practices
regarding the sale of insurance, financial, and investment products on and off
military installations. The act requires this state to adopt rules that meet
sales practice standards adopted by the National Association of Insurance
Commissioners to protect members of the United States armed forces from
dishonest and predatory insurance sales practices both on and off of a military
installation.
(2) Based on the
commissioner's authority under
RCW
48.30.010 to define by rule methods of
competition and other acts and practices in the conduct of the business of
insurance found by the commissioner to be unfair or deceptive, after evaluation
of the acts and practices of insurers, fraternal benefit societies, or
insurance producers that informed the need for
P.L.
109-290, and because the commissioner is required
by that act to adopt rules that meet the sales practice standards adopted by
the National Association of Insurance Commissioners and federal law, the
commissioner finds the acts or practices set forth in WAC
284-30-850 through
284-30-872 to be unfair or
deceptive methods of competition or unfair or deceptive acts or practices in
the business of insurance.
(3)
These military sales practices rules are effective for all benefit contracts,
insurance policies and certificates solicited, issued, or delivered in this
state on and after (the effective date of these rules).
