Section R590-285-17 - Standards for Marketing(1) An insurer or other entity marketing limited long-term care insurance in this state, directly or through a producer, shall:(a) establish marketing procedures and training requirements to ensure that: (i) any marketing activities, including a comparison of policies, by its producers are fair and accurate; and(ii) excessive insurance is not sold or issued;(b) display prominently on the first page of the policy and outline of coverage, by type, stamp, or other appropriate means, the following: "Notice to buyer: This policy may not cover all of the costs associated with limited long-term care incurred by the buyer during the period of coverage. The buyer is advised to review carefully all policy limitations.";(c) provide to an applicant copies of the disclosure form under Subsection R590-285-8(4);(d) make every reasonable effort to identify whether a prospective applicant already has accident and health insurance, limited long-term care insurance, or long-term care insurance including the types and amounts of any such insurance;(e) establish auditable procedures for verifying compliance with this Subsection (1);(f) use the terms "noncancellable" or "level premium" only when the policy or certificate conforms with Subsection R590-285-5(1), as applicable; and(g) if included, provide an explanation of contingent benefit upon lapse provided under Section R590-285-22.(2) In addition to the practices prohibited under Section 31A-23a-402, the following acts and practices are prohibited:(a) cold lead advertising;(b) high pressure tactics;(c) misrepresentation; and(3)(a) An insurer offering a policy to an association shall require the association to: (i) educate its members concerning limited long-term care issues so the members can make informed decisions;(ii) provide objective information regarding a policy or certificate endorsed or sold by the association to ensure the members receive a balanced and complete explanation of the features in the policy or certificate that is being endorsed or sold; and (iii) disclose in each limited long-term care insurance solicitation: (A) the specific nature and amount of the compensation arrangements, including all fees, commissions, administrative fees, and other forms of financial support, that the association receives from the endorsement or sale of the policy or certificate to its members; and(B) a brief description of the process under which the policy and the insurer issuing the policy were selected.(b) If an association and an insurer have interlocking directorates or trustee arrangements, the insurer shall require the association to disclose that fact to its members.(c) An insurer shall require the board of directors of an association selling or endorsing a policy or certificate to review and approve the policy and the compensation arrangements made with the insurer.(d) An insurer shall: (i) actively monitor the marketing efforts of an association and a producer; and(ii) review and approve all marketing materials or other insurance communications used to promote sales or marketing sent to members regarding a policy or certificate.(e) An insurer may not issue a policy to an association or a certificate to an association policy, or continue to market a policy or certificate, unless the insurer certifies annually that the association complies with the requirements in this Subsection (3).(f) An insurer's failure to comply with the filing and certification requirements of this section constitutes an unfair trade practice in violation of Section 31A-23a-402.Utah Admin. Code R590-285-17
Adopted by Utah State Bulletin Number 2021-05, effective 2/23/2021Adopted by Utah State Bulletin Number 2024-21, effective 10/22/2024