N.J. Admin. Code § 11:4-23.18

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-23.18 - Standards for marketing

(a) Every carrier, directly or through its producers, shall:

1. Establish marketing procedures to assure that any comparison of policies by its agents or other producers will be fair and accurate;

2. Establish marketing procedures to assure excessive coverage is not sold or issued to any consumer;

3. 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."

4. Make every reasonable effort to identify when a prospective applicant or enrollee already has Medicare supplement and/or accident and sickness coverage, the quantity of such policies and extensiveness of such coverage; and

5. Establish procedures which are auditable for purposes of verifying compliance with this section.

(b) Practices which are prohibited in this State, in addition to those set forth in N.J.S.A. 17B:30-1 et seq., include, but are not limited to, the following:

1. Twisting; that is, knowingly making any misleading representations or incomplete or fraudulent comparisons of any policies or carriers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convey any policy or certificate or to purchase any policy with another carrier;

2. High pressure tactics; that is, employing any method of marketing having the effect of or tending to induce the purchase or to recommend the purchase of coverage through force, fright, explicit or implied threat, or undue pressure; and

3. Cold lead advertising; that is, 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 or other similar coverage, and that further contact with the consumer will be made by an insurance agent, other producer or carrier.

N.J. Admin. Code § 11:4-23.18

New Rule, R.1991 d.345, effective 7/1/1991.
See: 23 New Jersey Register 1264(a), 23 New Jersey Register 2014(a).
Amended by R.1993 d.26, effective 1/4/1993.
See: 24 New Jersey Register 12(a), 25 New Jersey Register 141(a).
Rule on severability recodified to 23.22; rule on standards for marketing recodified from 23.14; insurer changed to carrier.
Amended by R.1996 d.4, effective 1/2/1996.
See: 27 New Jersey Register 3557(a), 28 New Jersey Register 165(a).
Amended by R.1996 d.295, effective 7/1/1996.
See: 28 New Jersey Register 1647(a), 28 New Jersey Register 3462(a).
Recodified from N.J.A.C. 11:4-23.17 by R.1999 d.38, effective 12/28/1998 (to expire February 26, 1999).
See: 31 New Jersey Register 181(a).
Former N.J.A.C. 11:4-23.18, Appropriateness of recommended purchase and excessive coverage, recodified to N.J.A.C. 11:4-23.19.
Adopted concurrent proposal, R.1999 d.100, effective 2/26/1999.
See: 31 New Jersey Register 181(a), 31 New Jersey Register 876(a).