insurance sales - Notice to policy owners.
1.No person, including a member insurer, insurance producer, or affiliate of a member
insurer, may 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 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 chapter 26.1-38.1. However, this se
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insurance sales - Notice to policy owners.
1. No person, including a member insurer, insurance producer, or affiliate of a member
insurer, may 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 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 chapter 26.1-38.1. However, this section does not apply to the
North Dakota life and health insurance guaranty association or any other entity that
does not sell or solicit insurance or coverage by a health maintenance organization.
2. Before January 1, 1990, the association shall prepare a summary document
describing the general purposes and current limitations of the chapter and complying
with subsection 3. This document should be submitted to the commissioner for
approval. Sixty days after receiving approval, no member insurer may deliver a policy
or contract to a policy owner, contract owner, certificate holder, or enrollee unless the
summary document is delivered to the policy owner, contract owner, certificate holder,
or enrollee at the time of delivery of the policy or contract. The document should also
be available upon request by a policy owner, contract owner, certificate holder, or
enrollee. The distribution, delivery, or contents or interpretation of this document does
not mean that either the policy or contract or the policy owner, contract owner,
certificate holder, or enrollee is covered in the event of the impairment or insolvency of
a member insurer. The description document must be revised by the association as
amendments to the chapter may require. Failure to receive this document does not
give the policy owner, contract owner, certificate holder, enrollee, or insured any
greater rights than those stated in this chapter.
3. The document prepared under subsection 2 must contain a clear and conspicuous
disclaimer on its face. The commissioner shall establish the form and content of the
disclaimer. The disclaimer must:
a. State the name and address of the life and health insurance guaranty association
and insurance department;
b. Prominently warn the policy owner, contract owner, certificate holder, or enrollee
that the North Dakota life and health insurance guaranty association may not
cover the policy or contract, or, if coverage is available, it will be subject to
substantial limitations and exclusions and be conditioned on continued residence
in this state;
c. State the types of policies or contracts for which guaranty funds will provide
coverage;
d. State that the member insurer and its insurance producers are prohibited by law
from using the existence of the North Dakota life and health insurance guaranty
association for the purpose of sales, solicitation, or inducement to purchase any
form of insurance or health maintenance organization coverage;
e. Emphasize that the policy owner, contract owner, certificate holder, or enrollee
should not rely on coverage under the North Dakota life and health insurance
guaranty association when selecting an insurer or health maintenance
organization coverage;
f. Explain rights available and procedures for filing a complaint to allege a violation
of any provisions of this chapter; and
g. Provide other information as directed by the commissioner, including sources for
information about the financial condition of insurers provided the information is
not proprietary and is subject to disclosure under the state's public records law.
4. A member insurer shall retain evidence of compliance with subsection 2 for so long as
the policy or contract for which the notice is given remains in effect.