§431:10H-229  Standards for marketing.  (a)  Every insurer, health care service plan, or other entity marketing long-term care insurance coverage in this State, directly or through producers, shall:

     (1)  Establish marketing procedures to assure that any comparison of policies by its 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 outline of coverage and policy the following:


          "Notice to buyer:  This policy may not cover all of the costs associated with long-term care incurred by the buyer during the period of coverage.  The buyer is advised to review carefully all policy limitations.";


     (4)  Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for long-term care insurance currently has long-term care insurance and the types and amounts of any long-term care insurance, except that in the case of qualified long-term care insurance contracts, an inquiry into whether a prospective applicant or enrollee for long-term care insurance has accident and sickness insurance is not required;

     (5)  Every insurer or entity marketing long-term care insurance shall establish auditable procedures for verifying compliance with this subsection;

     (6)  If the state in which the policy or certificate is to be delivered or issued for delivery has a senior insurance counseling program approved by the commissioner, the insurer, at solicitation, shall provide written notice to the prospective policyholder or certificate holder of a state senior insurance counseling program including the name, address, and telephone number of the program;

     (7)  For long-term care health insurance policies and certificates, use the terms "noncancellable" or "level premium" only when the policy or certificate conforms to section 431:10H-202;

     (8)  Provide copies of the disclosure forms required in section 431:10H-217.5(c) to the applicant; and

     (9)  Provide an explanation of contingent benefit upon lapse provided for in section 431:10H-233(f) and, if applicable, the additional contingent benefit upon lapse provided to policies with fixed or limited premium paying periods in section 431:10H-233(g).

     (b)  In addition to the acts or practices prohibited in article 13, all of 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 insurer.

     (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 purchase of insurance.

     (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 producer or insurance company.

     (4)  Misrepresentation.  Falsifying a material fact in selling or offering to sell a long-term care insurance policy. [L 1999, c 93, pt of §2; am L 2002, c 155, §75; am L 2007, c 233, §19; am L 2009, c 49, §3]