S.D. Admin. R. 20:06:13:58

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:13:58 - Marketing practices prohibited

No person may employ any method of marketing to induce the purchase of insurance through force, fright, or threat whether explicit or implied or apply undue pressure to purchase insurance. No person may directly or indirectly use any method of marketing that 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.

The following acts and practices are specifically prohibited in marketing:

(1) "Twisting," knowingly making any misleading representation or incomplete or fraudulent comparison of any insurance policies or insurers for the purposes 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;

(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 insurance;

(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.

S.D. Admin. R. 20:06:13:58

16 SDR 174, effective 5/2/1990; 36 SDR 209, effective 7/1/2010.

General Authority: SDCL 58-4-1, 58-17A-2.

Law Implemented: SDCL 58-17A-2, 58-17A-7.