HAR §16-12-12.2. Standards for marketing

(a) An issuer, directly or through its producers, shall: (1) Establish marketing procedures to assure that any comparison of policies by its agents or other producers will be fair and accurate. (2) Establish marketing procedures to assure excessive insurance is not sold or issued. (3) Display prominently by type, stamp, or other appropriate means, on the first page of the §16-12-12.2 12-89 outline of coverage and policy the following: “NOTICE TO BUYER: This policy may not cover all of your medical expenses." (4) Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for Medicare supplement insurance already has accident and sickness insurance and the types and amounts of that insurance. (5) Establish auditable procedures for verifying compliance with this subsection. (b) In addition to the practices prohibited in article 13 of chapter 431, HRS, the following acts and practices are prohibited: (1) Twisting. Knowingly making any misleading representation or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy, or to take out a policy of insurance with another issuer; (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; and (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. §16-12-12.2 12-90 (c) The terms "Medicare supplement," "Medigap," "Medicare wrap-around" and words of similar import shall not be used unless the policy is issued in compliance with this chapter. [Eff and comp 12/27/90; am and com 9/3/92; am and comp 7/6/99; comp 10/15/01; comp 12/9/02; am and comp 10/8/05; comp 9/25/09; am and comp 8/1/19] (Auth: HRS §§431:2-201, 431:10A-305, 431:10A-307) (Imp: HRS §§ 431:2-201, 431:10A-305, 431:10A-307, 431:13-103) §16-12-12.4 Appropriateness of recommended purchase and excessive insurance. (a) In recommending the purchase or replacement of any Medicare supplement policy or certificate an agent shall make reasonable efforts to determine the appropriateness of a recommended purchase or replacement. (b) Any sale of a Medicare supplement policy or certificate that will provide an individual more than one Medicare supplement policy or certificate is prohibited. (c) An issuer shall not issue a Medicare supplement policy or certificate to an individual enrolled in Medicare Part C unless the effective date of the coverage is after the termination date of the individual's Part C coverage. [Eff and comp 12/27/90; am and comp 9/3/92; comp 7/6/99; comp 10/15/01; comp 12/9/02; am and comp 10/8/05; comp 9/25/09; am and comp 8/1/19] (Auth: HRS §§431:2-201, 431:10A-305) (Imp: HRS §§431:2-201, 431:10A-305)