§ 26.1-36.1-05 — Medicare supplement policy disclosure standards

North Dakota § 26.1-36.1-05

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-36.1: Medicare Supplement Policies

Text

1. To provide for full and fair disclosure in the sale of Medicare supplement policies, no
Medicare supplement policy or certificate may be delivered or issued for delivery in
this state unless an outline of coverage is delivered to the applicant at the time
application is made.
2. The commissioner shall prescribe the format and content of the outline of coverage
required by subsection 1. For purposes of this section, "format" means style,
arrangement, and overall appearance, including such items as the size, color, and
prominence of type and the arrangement of text and captions. The outline of coverage
must include:
a. A description of the principal benefits and coverage provided in the policy.
b. A statement of the exceptions, reductions, and limitations contained in the policy.
c. A statement of the renewal provisions, including any reservation by the insurer of
a right to change premiums.
d. A statement that the outline of coverage is a summary of the policy issued or
applied for and that the policy should be consulted to determine governing
contractual provisions.
3. The commissioner may prescribe by rule a standard form and the contents of an
informational brochure for persons eligible for Medicare which is intended to improve
the buyer's ability to select the most appropriate coverage and improve the buyer's
understanding of Medicare. Except in the case of direct response insurance policies,
the commissioner may require by rule that the information brochure be provided to any
prospective insureds eligible for Medicare concurrently with the delivery of the outline
of coverage. With respect to direct response insurance policies, the commissioner may
require by rule that the prescribed brochure be provided upon request to any
prospective insureds eligible for Medicare, but in no event later than the time of policy
delivery.
4. The commissioner may adopt rules for captions or notice requirements, determined to
be in the public interest and designed to inform prospective insureds that particular
insurance coverages are not Medicare supplement coverages, for all accident and
health insurance policies sold to persons eligible for Medicare, other than:
a. Medicare supplement policies; or
b. Disability income policies.
5. The commissioner may also adopt rules to govern the full and fair disclosure of the
information in connection with the replacement of accident and sickness policies,
subscriber contracts, or certificates by persons eligible for Medicare.