26.1-53.1-20. Required disclosures

26.1-53.1-20. Required disclosures 1. A discount plan organization or marketer shall disclose clearly and conspicuously in writing to any prospective member and on any advertisements, marketing materials, or brochures relating to a discount plan: a. The plan is a discount plan and is not insurance coverage; b. The range of discounts for medical or ancillary services provided under the plan will vary depending on the type of provider and medical or ancillary service received; c. Unless the discount plan organization has an active certificate of authority to act as a third-party administrator as described in subsection 6 of section 26.1-53.1-19, that the plan does not make payments to providers for the medical or ancillary services received under the discount plan; d. The plan member is obligated to pay for all medical or ancillary services, but will receive a discount from those providers that have contracted with the discount plan organization; and e. The toll-free telephone number and internet website address for the registered discount plan organization for prospective members and members to obtain additional information about and assistance on the discount plan and up-to-date lists of providers participating in the discount plan. 2. If the initial contact with a prospective member is by telephone, the disclosures required under subsection 1 must be made orally and be included in the initial written materials that describe the benefits under the discount plan provided to the prospective or new member. 3. In addition to the disclosures required under subsection 1, each discount plan organization or marketer shall provide to each prospective member, at the time of enrollment, information that describes the terms and conditions of the discount plan, including any limitations or restrictions on the refund of any processing fees or periodic charges associated with the discount plan.