§ 26-38-206 — 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 commissioner shall prescribe both the format and
content of the outline of coverage required by subsection (a) of
this section. For 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 but is
not limited to:
(i) A description of the principal benefits and
coverage provided in the policy;
(ii) A statement of the exceptions, reductions and
limitations contained in the policy;
(iii) A statement of the renewal provisions,
including any reservation by the insurer of a right to change
premiums and disclosure of the existence of any automatic
renewal premium increases based on the policyholder's age;
(iv) 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 commissioner 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 commissioner 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 commissioner 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 the policy is delivered.
(d) The commissioner may adopt reasonable regulations 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 disability insurance policies sold to persons
eligible for Medicare, other than:
(i) Medicare supplement policies; or
(ii) Disability income policies.
(iii) Repealed By Laws 1997, ch. 12, § 2.
(iv) Repealed By Laws 1997, ch. 12, § 2.
(e) The commissioner may further adopt reasonable
regulations to govern the full and fair disclosure of the
information in connection with the replacement of disability
policies, subscriber contracts or certificates by persons
eligible for Medicare.