17B:32A-17. Association shall not be used to promote insurance sales
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/nj/title-17b/chapter-32a/17b-32a-17·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
17. a. No person, including a member insurer, agent or affiliate of a member insurer or insurance producer shall make, publish, disseminate, circulate or place before the public or cause directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in any newspaper, magazine or other publication or in the form of a notice, circular, pamphlet, letter or poster, or over any radio station or television station, or in any other way, any advertisement, announcement or statement, written or oral, which uses the existence of the association for the purpose of sales, solicitation, or inducement to purchase any form of insurance or other coverage covered by P.L.1991, c.208 (C.17B:32A-1 et seq.).
This subsection shall not apply to the department or the association or to any other entity which does not sell or solicit insurance or coverage by a health service corporation, hospital service corporation, medical service corporation, or health maintenance organization.
b. Within 180 days of the effective date of P.L.1991, c.208 (C.17B:32A-1 et seq.), the association shall prepare a summary document describing the general purposes and current limitations of P.L.1991, c.208 (C.17B:32A-1 et seq.) which complies with subsection c. of this section. This document shall be submitted to the commissioner for approval. Sixty days after receiving that approval, no member insurer may deliver a policy or contract described in subsection b. of section 3 of P.L.1991, c.208 (C.17B:32A-3) to a policy or contract owner, certificate holder, or enrollee unless the document is delivered to the policy or contract owner, certificate holder, or enrollee prior to or at the time of delivery of the policy or contract.
The document should also be available upon request by a policy or contract owner, certificate holder, or enrollee. The distribution, delivery, contents or interpretation of this document shall not mean that either the policy or the contract or the policy or contract owner, certificate holder, or enrollee thereof would be covered in the event of the impairment or insolvency of a member insurer. The document shall be revised by the association as amendments to the act may require.
Failure to receive this document does not give the policy or contract owner, certificate holder, enrollee, or insured any greater rights than those stated in P.L.1991, c.208 (C.17B:32A-1 et seq.).
c. The document prepared pursuant to subsection b. of this section shall contain a clear and conspicuous disclaimer on its face. The commissioner shall promulgate a rule establishing the form and content of the disclaimer. The disclaimer shall:
(1)state the name and address of the association and the department;
(2)prominently warn the policy owner, contract owner, certificate holder, or enrollee that the association may not cover the policy or contract or, if coverage is available, it will be subject to substantial limitations and exclusions and conditioned on continued residence in this State;
(3)state that the member insurer and its producers are prohibited by law from using the existence of the association for the purpose of sales, solicitation or inducement to purchase any form of insurance, health service corporation coverage, hospital service corporation coverage, medical service corporation coverage, or health maintenance organization coverage;
(4)emphasize that the policy or contract owner, certificate holder, or enrollee should not rely on coverage under the association when selecting a member insurer, health service corporation, hospital service corporation, medical service corporation, or health maintenance organization;
(5)state the types of policies or contracts for which guaranty funds will provide coverage;
(6)explain rights available and procedures for filing a complaint to allege a violation of any provisions of P.L.1991, c.208 (C.17B:32A-1 et seq.); and
(7)provide other information as directed by the commissioner, including, but not limited to, sources for information about the financial condition of member insurers provided that the information is not proprietary and is subject to disclosure under P.L.1963, c.73 (C.47:1A-1 et seq.).
d. A member insurer shall retain evidence of compliance with subsection b. of this section for so long as the policy or contract for which the notice is given remains in effect.
L.1991,c.208,s.17; amended 2022, c.98, s.15.