§2098. Prohibited advertisement of Louisiana Life and Health Insurance Guaranty
Association Law in insurance sales; notice to policyholders
A.No person, including a member insurer, agent, or affiliate of a member insurer
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
Life and Health Insurance Guaranty Association of this state for the purpose of sales
solicitation, or inducem
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§2098. Prohibited advertisement of Louisiana Life and Health Insurance Guaranty
Association Law in insurance sales; notice to policyholders
A. No person, including a member insurer, agent, or affiliate of a member insurer
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
Life and Health Insurance Guaranty Association of this state for the purpose of sales
solicitation, or inducement to purchase any form of insurance or other coverage covered by
the Louisiana Life and Health Insurance Guaranty Association Law. This Section shall not
apply to the Louisiana Life and Health Insurance Guaranty Association or any other entity
which does not sell or solicit insurance or coverage by a health maintenance organization.
B. Within one hundred eighty days of September 30, 1991, the association shall
prepare a summary document describing the general purposes and current limitations of the
Part and complying with R.S. 22:2092(C). This document shall be submitted to the
commissioner for approval. Sixty days after receiving approval, no member insurer shall
deliver a policy or contract described in R.S. 22:2083(B)(1) to a policy owner, contract
owner, certificate holder, or enrollee unless the document is delivered to the policy owner,
contract owner, certificate holder, or enrollee prior to or at the time of delivery of the policy
or contract except if Subsection D of this Section applies. The document shall also be
available upon request by a policyholder. The distribution, delivery, or contents or
interpretation of this document shall not mean that either the policy or the contract or the
policy owner, contract owner, certificate holder, or enrollee would be covered in the event
of the impairment or insolvency of a member insurer. The description document shall be
revised by the association as amendments to this Part may require. Failure to receive this
document shall not give the policy owner, contract owner, certificate holder, enrollee, or
insured any greater rights than those stated in this Part.
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 do all of the
following:
(1) State the name and address of the association and the insurance department.
(2) Prominently warn the policy owner, contract owner, certificate holder, or
enrollee that the association may not cover the policy or, if coverage is available, it will be
subject to substantial limitations and exclusions, and conditioned on continued residence in
the state.
(3) State that the insurer and its agents 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.
(4) Emphasize that the policy or contract holder should not rely on coverage under
the association when selecting an insurer.
(5) Provide other information as directed by the commissioner.
D. No insurer or agent may deliver a policy or contract described in R.S.
22:2083(B)(1) and excluded by R.S. 22:2083(B)(2) from coverage under this Part unless the
insurer or agent, prior to or at the time of delivery gives the policy or contract holder a
separate written notice which clearly and conspicuously discloses that the policy or contract
is not covered by the association. The commissioner shall by rule specify the form and
content of the notice.