§ 27-18.2-6. Disclosure standards.
(a) In order to provide for full and fair disclosure in the sale of Medicare supplement
policies, no Medicare supplement policy or certificate shall be delivered in this
state unless an outline of coverage is delivered to the applicant at the time application
is made.
(b) The director shall prescribe the format and content of the outline of coverage required
by subsection (a) of this section. For the purposes of this section, "format� means
style, arrangements, and overall appearance, including such items as the size, color,
and prominence of type and arrangement of text and captions. The outline of coverage
shall include:
(1) A description of the principal benefits and coverage provided in the policy;
(2) A statement of the renewal provisions, including any reservation by the issuer of
a right to change premiums, and a disclosure of the existence of any automatic renewal
premium increase based on the policyholder's age; and
(3) 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.
(c) The director may prescribe by regulation 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 director
may require by regulation that the information brochure be provided to any prospective
insureds eligible for Medicare concurrently with delivery of the outline of coverage.
With respect to direct response insurance policies, the director may require by regulation
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.
(d) The director may adopt regulations for captions or notice requirements, determined
to be in the public interest and designed to inform prospective insureds that particular
insurance coverage is not Medicare supplement coverage, for all accident and sickness
insurance policies sold to persons eligible for Medicare other than:
(1) Medicare supplement policies; or
(2) Disability income policies.
(e) The director may adopt reasonable regulations 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.