760 IAC 1-18-1 Statement of principles

Sec. 1. Basic Principles of Interpretation. The proper promotion, sale and expansion of accident and sickness insurance are in the public interest, and the Rules [ 760 IAC 1-18] are to be construed in such a manner as not to restrict, inhibit or retard such promotion, sale and expansion. In applying the Rules [ 760 IAC 1-18] it must be recognized that advertising plays an essential part in promoting a broader distribution of accident and sickness insurance. Advertising necessarily seeks to serve this purpose in various ways. Some advertisements are the direct or principal sales inducement and are designed to invite offers to contract. In other advertisements the function is to describe coverage broadly for the purpose of inviting inquiry for further information. Still other advertisements are solely for the purpose of promoting the reader's interest in the concept of accident and sickness insurance or of promoting the insurer sponsoring the advertisement. These differences should be given recognition through interpretation of the Rules [ 760 IAC 1-18]. Further, it should be recognized that exceptions, reductions and limitations have an important role in defining coverage for the purpose of keeping insurance costs within reasonable bounds. Therefore, when applying the Rules [ 760 IAC 1-18] to a specific advertisement, it will be necessary to take into consideration the detail, character, purpose, use and entire content of the advertisement.