§ 26.1-19-11 — Prohibited practices

North Dakota § 26.1-19-11

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-19: Prepaid Legal Services

Text

1. A prepaid legal services organization, or representative thereof, may not cause or
knowingly permit the use of advertising, solicitation, or any form of coverage which is
false, fraudulent, misleading, or deceptive. For the purposes of this section:
a. A statement or item of information is false if it does not conform to fact in any
respect which is or may be significant to a participant, or a person considering
participating in a legal services plan.
b. A statement or item of information is misleading, whether or not it may be literally
untrue, if, in the context in which the statement is made or the item of information
is communicated, the statement or item of information may be reasonably
understood by a reasonable person, not possessing special knowledge regarding
legal services coverage, as indicating any benefit or advantage or the absence of
any exclusion, limitation, or disadvantage of possible significance to a participant,
or person considering participating in a legal services plan, if that benefit or
advantage or absence of limitation, exclusion, or disadvantage does not in fact
exist.
c. An evidence of coverage is deceptive if the evidence of coverage taken as a
whole and with consideration given to typography and format and language is
such as to cause a reasonable person, not possessing special knowledge
regarding legal services plans and evidence of coverage thereof, to expect
benefits, services, or changes which the evidence of coverage does not provide
or which the legal services plan issuing such evidence of coverage does not
regularly make available for participants covered under the evidence of coverage.
2. A participant's coverage may not be canceled or nonrenewed except for the failure to
pay the charge for that coverage, or for other reasons as may be set out in a rule
adopted by the commissioner.
3. A prepaid legal services organization may not use in its name, contracts, or literature
the words "insurance", "casualty", "surety", or "mutual", or any other words descriptive
of the insurance, casualty, or surety business or similar to the name or description of
any insurance or surety corporation doing business in this state.