Section 2008.101  Standards for Marketing

a)         An issuer, directly or through its producers, shall:

1)         Establish fair and accurate marketing procedures which comply with the standards set forth in Section 363a(5) and (6) of the Code.

2)         Establish marketing procedures to assure duplicative insurance benefits are not sold or issued.

3)         Display prominently by type, stamp or other appropriate means, on the first page of the policy, the following:

            "Notice to buyer:  This policy may not cover all of  your medical expenses."

4)         Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for Medicare supplement insurance already has accident and sickness insurance and the types and amounts of such insurance.

5)         Establish auditable procedures for verifying compliance with this subsection (a).

b)         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 inducing or tending to induce the purchase of insurance through force, fright, threat, whether explicit or implied, or undue pressure to purchase or recommend the 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 agent or insurance company.

c)         The terms "Medicare Supplement," "Medigap," "Medicare Wrap-Around" and words of similar import shall not be used unless the policy is issued in compliance with this Part.

(Source:  Amended at 20 Ill. Reg. 6393, effective April 28, 1996)