§431:10H-229  Standards for marketing.  (a) Every insurer, health care service plan, or other entity marketing long-termcare insurance coverage in this State, directly or through producers, shall:

(1)  Establish marketing procedures to assure that anycomparison of policies by its producers will be fair and accurate;

(2)  Establish marketing procedures to assureexcessive insurance is not sold or issued;

(3)  Display prominently by type, stamp, or otherappropriate means, on the first page of the outline of coverage and policy thefollowing:

 

"Notice to buyer:  This policy may not coverall of the costs associated with long-term care incurred by the buyer duringthe period of coverage.  The buyer is advised to review carefully all policylimitations.";

 

(4)  Inquire and otherwise make every reasonableeffort to identify whether a prospective applicant or enrollee for long-termcare insurance currently has long-term care insurance and the types and amountsof any long-term care insurance, except that in the case of qualified long-termcare insurance contracts, an inquiry into whether a prospective applicant orenrollee for long-term care insurance has accident and sickness insurance isnot required;

(5)  Every insurer or entity marketing long-term careinsurance shall establish auditable procedures for verifying compliance withthis subsection;

(6)  If the state in which the policy or certificateis to be delivered or issued for delivery has a senior insurance counselingprogram approved by the commissioner, the insurer, at solicitation, shallprovide written notice to the prospective policyholder or certificate holder ofa state senior insurance counseling program including the name, address, and telephonenumber of the program;

(7)  For long-term care health insurance policies andcertificates, use the terms "noncancellable" or "levelpremium" only when the policy or certificate conforms to section431:10H-202;

(8)  Provide copies of the disclosure forms requiredin section 431:10H-217.5(c) to the applicant; and

(9)  Provide an explanation of contingent benefit uponlapse provided for in section 431:10H-233(f) and, if applicable, the additionalcontingent benefit upon lapse provided to policies with fixed or limitedpremium paying periods in section 431:10H-233(g).

(b)  In addition to the acts or practicesprohibited in article 13, all of the following acts and practices areprohibited:

(1)  Twisting.  Knowingly making any misleadingrepresentation or incomplete or fraudulent comparison of any insurance policiesor insurers for the purpose of inducing, or tending to induce, any person tolapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, orconvert any insurance policy or to take out a policy of insurance with anotherinsurer.

(2)  High pressure tactics.  Employing any method ofmarketing having the effect of or tending to induce the purchase of insurancethrough force, fright, threat, whether explicit or implied, or undue pressureto purchase or recommend purchase of insurance.

(3)  Cold lead advertising.  Making use directly orindirectly of any method of marketing which fails to disclose in a conspicuousmanner that a purpose of the method of marketing is solicitation of insuranceand that contact will be made by an insurance producer or insurance company.

(4)  Misrepresentation.  Falsifying a material fact inselling or offering to sell a long-term care insurance policy. [L 1999, c 93,pt of §2; am L 2002, c 155, §75; am L 2007, c 233, §19; am L 2009, c 49, §3]