Improper Usage of Life and A&H Guaranty Fund Disclosure Form

EARL R. POMEROY COMMISSIONER OF INSURANCE State of North Dakota DEPARTMENT OF INSURANCE Fifth Floor State Capitol Bismarck, North Dakota 58505 Telephone (701) 224-2440 Consumer "HOTLINE" 1-800-247-0560 # BULLETIN 90-6 TO: ALL COMPANIES WRITING LIFE AND ACCIDENT & HEALTH INSURANCE FROM: Earl R. Pomeroy, Commissioner of Insurance DATE: October 26, 1990 SUBJECT: Improper Usage of Life and A&H Guaranty Fund Disclosure Form It has come to my attention that some companies are requiring their agents to furnish a copy of North Dakota's recently adopted "Life and Health Guaranty Fund Disclosure Form" at the time new business is being solicited or when applications are being taken. This conduct is prohibited under North Dakota's guarantee fund laws. Companies must make this form available to policyholders not applicants. It should be given to a policyholder at the time of policy delivery. Agents and companies are prohibited from using the existence of the guaranty fund to solicit business or induce clients to purchase insurance. The complete text of the North Dakota Century Code and Administrative Code pertaining to this disclosure are attached. Companies are requested to advise your agents regarding the possible misuse of the "Guaranty Fund Disclosure Form". ERP/vm/ds