§431:10H-230 - Standards of marketing--certain group policies.

§431:10H-230 Standards of
marketing--certain group policies. (a) With respect to the obligations
set forth in this section, the primary responsibility of an association as
defined in paragraph (2) of the definition of "group long-term care
insurance" under section 431:10H-104, when endorsing or selling long-term
care insurance, shall be to educate its members concerning long-term care
issues in general so that its members can make informed decisions.
Associations shall provide objective information regarding long-term care
insurance policies or certificates endorsed or sold through the association to
ensure that members of the association receive a balanced and complete
explanation of the features in the policies or certificates that are being
endorsed or sold.

(b) The insurer shall file the following
information with the commissioner:

(1) The policy and certificate;

(2) A corresponding outline of coverage; and

(3) All advertisements requested by the commissioner.

(1) The specific nature and amount of the
compensation arrangements (including all fees, commissions, administrative
fees, and other forms of financial support) that the association receives from
endorsement or sale of the policy or certificate to its members; and

(2) A brief description of the process under which
the policies and the insurer issuing the policies were selected.

(d) If the association and the insurer have
interlocking directorates or trustee arrangements, the association shall
disclose that fact to its members.

(e) The board of directors of an association
endorsing or selling long-term care insurance policies or certificates shall
review and approve the insurance policies as well as the compensation
arrangements made with the insurer.

(f) The association shall also:

(1) At the time of the association's decision to
endorse, engage the services of a person with expertise in long-term care
insurance not affiliated with the insurer to conduct an examination of the
policies, including benefits, features, and rates, and update the examination
thereafter in the event of material change;

(2) Actively monitor the marketing efforts of the
insurer and its producers; and

(3) Review and approve all marketing materials or
other insurance communications used to promote sales or sent to members
regarding the policies or certificates.

This subsection shall not apply to qualified
long-term care insurance contracts.

(g) No group long-term care insurance policy
or certificate may be issued to an association unless the insurer files with
the commissioner the information required in this section.

(h) The insurer shall not issue a long-term
care policy or certificate to an association or continue to market such a
policy or certificate unless the insurer certifies annually that the
association has complied with the requirements set forth in this section.

(i) Failure to comply with the filing and
certification requirements of this section constitutes an unfair trade practice
in violation of article 13 of this chapter. [L 1999, c 93, pt of §2; am L 2002,
c 155, §76; am L 2007, c 233, §20]