§431:10A-307  Disclosure standards. (a)  In order to provide for full and fair disclosure in the sale of medicaresupplement policies, no medicare supplement policy or certificate shall bedelivered or issued for delivery in this State unless an outline of coverage isdelivered to the applicant at or prior to the time application is made.

(b)  The commissioner shall prescribe theformat and content of the outline of coverage required by subsection (a).  Forthe purposes of this section, format means style, arrangement and overallappearance, including such items as the size, color, prominence of type, andthe arrangement of text and captions.  The outline of coverage shall include:

(1)  A description of the principal benefits andcoverage provided in the policy;

(2)  A statement of the renewal provisions includingany reservation by the issuer of a right to change premiums; and disclosure ofthe existence of any automatic renewal premium increases based on thepolicyholder's age; and

(3)  A statement that the outline of coverage is asummary of the policy issued or applied for and that the policy should beconsulted to determine governing contractual provisions.

(c)  The commissioner may prescribe by rule astandard form and contents of an informational brochure for persons eligiblefor medicare which is intended to improve the buyer's ability to select themost appropriate coverage and improve the buyer's understanding of medicare. Except in the case of direct response insurance policies, the commissioner mayrequire by rule that the informational brochure be provided to any prospectiveinsureds eligible for medicare concurrently with delivery of the outline ofcoverage.  With respect to direct response insurance policies, the commissionermay require by rule that the prescribed brochure be provided upon request toany prospective insureds eligible for medicare, but in no event later than thetime of policy delivery.

(d)  The commissioner may adopt reasonablerules for captions or notice requirements, determined to be in the publicinterest and designed to inform prospective insureds that particular insurancecoverages are not medicare supplement coverages, for all accident and health orsickness insurance policies sold to persons eligible for medicare, other than:

(1)  Medicare supplement policies; or

(2)  Disability income policies.

(e)  The commissioner may adopt reasonablerules to govern the full and fair disclosure of information in connection withthe replacement of accident and health or sickness insurance policies,subscriber contracts, or certificates by persons eligible for medicare. [L1987, c 347, pt of §2; am L 1990, c 84, §6; am L 1992, c 195, §6; am L 1996, c28, §5; am L 2002, c 155, §64]