Iowa Admin. Code r. 191-37.30

Current through Register Vol. 47, No. 8, October 30, 2024

Rule 191-37.30 - Standards for marketing

(1)Requirements for marketing. An issuer, directly or through its producers, shall:

a. Establish marketing procedures to ensure that any comparison of policies or certificates by its producers will be fair and accurate.

b. Establish marketing procedures to ensure excessive insurance is not sold or issued.

c. Display prominently by type, stamp or other appropriate means, on the first page of the policy or certificate, 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 covered individual for Medicare supplement policy or certificate already has accident and sickness insurance and the types and amounts of any such insurance.

e. Establish auditable procedures for certifying compliance with this subrule.

f. At solicitation, provide written notice to the prospective covered individual of the name, address, and telephone number of the senior health insurance information program, part of the insurance division. The written notice shall be in a form prescribed by the commissioner.

(2)Prohibitions in marketing. In addition to the practices prohibited in Iowa Code chapter 507B, 191-Chapter 15 and other rules promulgated under Iowa Code chapter 507B, and rule 191-3750. (514D), the following acts and practices are prohibited:

a.Twisting. Knowingly making any misleading representation or incomplete or fraudulent comparison of any insurance policies or certificates, or of any issuers, 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 certificate or to take out a policy or certificate of insurance with another issuer.

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 producer or insurance company.

(3)Prohibited terms in noncompliant policies or certificates. The terms "Medicare supplement," "Medigap," "Medicare wrap-around" and words of similar import shall not be used unless the policy or certificate is issued in compliance with this chapter.

Iowa Admin. Code r. 191-37.30

Amended by IAB April 10, 2019/Volume XLI, Number 21, effective 5/15/2019