§431:10H-230  Standards ofmarketing--certain group policies.  (a)  With respect to the obligationsset forth in this section, the primary responsibility of an association asdefined in paragraph (2) of the definition of "group long-term careinsurance" under section 431:10H-104, when endorsing or selling long-termcare insurance, shall be to educate its members concerning long-term careissues in general so that its members can make informed decisions. Associations shall provide objective information regarding long-term careinsurance policies or certificates endorsed or sold through the association toensure that members of the association receive a balanced and completeexplanation of the features in the policies or certificates that are beingendorsed or sold.

(b)  The insurer shall file the followinginformation with the commissioner:

(1)  The policy and certificate;

(2)  A corresponding outline of coverage; and

(3)  All advertisements requested by the commissioner.

(c)  The association shall disclose in anylong-term care insurance solicitation:

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

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

(d)  If the association and the insurer haveinterlocking directorates or trustee arrangements, the association shalldisclose that fact to its members.

(e)  The board of directors of an associationendorsing or selling long-term care insurance policies or certificates shallreview and approve the insurance policies as well as the compensationarrangements made with the insurer.

(f)  The association shall also:

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

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

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

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

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

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

(i)  Failure to comply with the filing andcertification requirements of this section constitutes an unfair trade practicein 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]