500.3942 Marketing; duties of insurer; use of "level premium" or "noncancelable" prohibited; exception.

238 words·~1 min read·/mi/chapter-500/500-3942

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Sec. 3942.

(1)Every insurer marketing long-term care insurance coverage in this state, directly or through its producers, shall do all of the following:

(a)Establish marketing procedures to assure that any comparison of policies by its producers or other producers are fair and accurate.

(b)Establish marketing procedures to assure excessive insurance is not sold or issued.

(c)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.".

(d)Inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for long-term care insurance already has accident and sickness or long-term care insurance and the types and amounts of such insurance.

(e)Establish auditable procedures for verifying compliance with this section.

(2)An insurer marketing long-term care insurance coverage in this state shall not use the term "level premium" or "noncancelable" unless the insurer does not have the right to change the premium for the product being marketed.

History: Add. 1992, Act 84, Imd. Eff. June 2, 1992 ;-- Am. 2006, Act 442 , Imd. Eff. Oct. 19, 2006

Popular Name: Act 218