<A TARGET="114-1-2">114-1-2</A>. Procedures.
2.1. Application of regulation. -- This regulation is applicable to all
domestic stock insurers having one hundred (100) or more stockholders:
Provided, however, That this regulation shall not apply to any insurer if
ninety-five percent (95%) or more of its stock is owned or controlled by a
parent or an affiliated insurer and the remaining shares are held by less
than five hundred (500) stockholders. A domestic stock insurer which files
with the Securities and Exchange Commission forms of proxies,
consents and authorizations complying with the requirements of the
Securities and Exchange Act of 1934 and the Securities and Exchange Acts
Amendments of 1964 and Regulation X-14 of the Securities and Exchange
Commission promulgated thereunder shall be exempt from the provisions of
this regulation.
2.2. Proxies, consents and authorizations. -- No domestic stock insurer,
or any director, officer or employee of such insurer subject to Section 2.1
of these rules hereof, or any other person, shall solicit, or permit the
use of his name to solicit, by mail or otherwise, any proxy, consent or
authorization in respect of any stock of such insurer in contravention of
this regulation.
2.3. Disclosure of equivalent information. -- Unless proxies, consents or
authorizations in respect of a stock of a domestic insurer subject to
Section 2.1 of these rules hereof, are solicited by or on behalf of the
management of such insurer from the holders of record of stock of such
insurer in accordance with this regulation prior to any annual or other
meeting, such insurer shall, in accordance with this regulation and/or such
further regulations as the Commissioner may adopt, file with the
Commissioner and transmit to all stockholders of record information
substantially equivalent to the information which would be required to be
transmitted if a solicitation were made.
2.4. Definitions.
(a) The definitions and instructions set out in Schedule SIS, as
promulgated by the National Association of Insurance Commissioners, shall
be applicable for purposes of this regulation.
(b) The terms "Solicit" and "Solicitation" for purposes of this regulation
shall include:
(1) Any request for a proxy, whether or not accompanied by or included in a
form of proxy; or
(2) Any request to execute or not to execute, or to revoke, a proxy; or
(3) The furnishing of a proxy or other communication to stockholders under
circumstances reasonably calculated to result in the procurement,
withholding or revocation of a proxy.
(c) The terms "Solicit" and "Solicitation" shall not include:
(1) Any solicitation by a person in respect of stock of which he is the
beneficial owner;
(2) Action by a broker or other person in respect to stock carried in his
name or in the name of his nominee in forwarding to the beneficial owner of
such stock soliciting material received from the company, or impartially
instructing such beneficial owner to forward a proxy to the person, if any,
to whom the beneficial owner desires to give a proxy, or impartially
requesting instructions from the beneficial owner with respect to the
authority to be conferred by the proxy and stating that a proxy will be
given if the instructions are received by a certain date;
(3) The furnishing of a form of proxy to a stockholder upon the unsolicited
request of such stockholder or the performance by any person of ministerial
acts on behalf of a person soliciting a proxy.
2.5. Information to be furnished to stockholders. (a) No solicitation
subject to this regulation shall be made unless each person solicited is
concurrently furnished or has previously been furnished with a written
proxy statement containing the information specified in Section 3 of these
rules.
(b) If the solicitation is made on behalf of the management of the insurer
and relates to an annual meeting of stockholders at which directors are to
be elected, each proxy statement furnished pursuant to Subdivision (c)
hereof shall be accompanied or preceded by an annual report (in preliminary
or final form) to such stockholders containing such financial statements
for the last fiscal year as are referred to in Schedule SIS under the
heading "Financial Reporting to Stockholders." Subject to the foregoing
requirements with respect to financial statements, the annual report to
stockholders may be in any form deemed suitable by the management.
(c) Two (2) copies of each report sent to the stockholders pursuant to
Section 2.5 of this part shall be mailed to the Commissioner not later than
the date on which such report is first sent or given to stockholders or the
date on which preliminary copies of solicitation material are filed with
the Commissioner, pursuant to Subdivision (a), of Section 2.7 of this part,
whichever date is later.
2.6. Requirements as to proxy.
(a) The form of proxy (i) shall indicate in bold-face type whether or not
the proxy is solicited on behalf of the management, (ii) shall provide a
specifically designated blank space for dating the proxy and (iii) shall
identify clearly and impartially each matter or group of related matters
intended to be acted upon, whether proposed by the management or
stockholders. No reference need be made to proposals as to which
discretionary authority is conferred pursuant to Subdivision (c) hereof.
(b) Means shall be provided in the proxy for the person solicited to
specify by ballot a choice between approval or disapproval of each matter
or group of related matters referred to therein, other than elections to
office. A proxy may confer discretionary authority with respect to matters
as to which a choice is not so specified if the form of proxy states in
bold-face type how it is intended to vote the shares or authorization
represented by the proxy in each such case.
(c) A proxy may confer discretionary authority with respect to other
matters which may come before the meeting: Provided, That the persons on
whose behalf the solicitation is made are not aware a reasonable time prior
to the time the solicitation is made that any other matters are to be
presented for action at the meeting: And provided further, That a specific
statement to that effect is made in the proxy statement or in the form of
proxy.
(d) No proxy shall confer authority (i) to vote for the election of any
person to any office for which a bona fide nominee is not named in the
proxy statement, or (ii) to vote at any annual meeting other than the next
annual meeting (or any adjournment thereof) to be held after the date on
which the proxy statement and form of proxy are first sent or given to
stockholders.
(e) The proxy statement or form of proxy shall provide, subject to
reasonable specified conditions, that the proxy will be voted and that
where the person solicited specifies by means of ballot provided pursuant
to Subdivision (b) hereof a choice with respect to any matter to be acted
upon, the vote will be in accordance with the specifications so made.
(f) The information included in the proxy statement shall be clearly
presented and the statements made shall be divided into groups according to
subject matter, with appropriate headings. All printed proxy statements
shall be clearly and legibly presented.
2.7. Material required to be filed.
(a) Two (2) preliminary copies of the proxy statement and form of proxy and
any other soliciting material to be furnished to stockholders concurrently
therewith shall be filed with the Commissioner at least ten (10) days prior
to the date definitive copies of such material are first sent or given to
stockholders or such shorter period prior to that date as the Commissioner
may authorize upon a showing of good cause therefor.
(b) Two (2) preliminary copies of any additional soliciting material
relating to the same meeting or subject matter to be furnished to
stockholders subsequent to the proxy statements shall be filed with the
Commissioner at least two (2) days (exclusive of Saturdays, Sundays or
holidays) prior to the date copies of this material are first sent or given
to stockholders or a shorter period prior to such date as the Commissioner
may authorize upon a showing of good cause therefor.
(c) Two (2) definitive copies of the proxy statement, form of proxy and all
other soliciting material, in the form in which this material is furnished
to stockholders, shall be filed with, or mailed for filing to, the
Commissioner not later than the date such material is first sent or given
to the stockholders.
(d) Where any proxy statement, form of proxy or other material filed
pursuant to these rules is amended or revised, two (2) of the copies shall
be marked to clearly show such changes.
(e) Copies of replies to inquiries from stockholders requesting further
information and copies of communications which do no more than request that
forms of proxy theretofore solicited be signed and returned need not be
filed pursuant to this section.
(f) Notwithstanding the provisions of Subdivisions (a) and (b) hereof and
of Subdivision (e), of Section 2.10 of these rules, copies of soliciting
material in the form of speeches, press releases and radio or television
scripts may, but need not, be filed with the Commissioner prior to use or
publication. Definitive copies, however, shall be filed with or mailed for
filing to the Commissioner as required by Subdivision (c) hereof not later
than the date such material is used or published. The provisions of
Subdivisions (a) and (b) hereof and Subdivision (e), Section 2.10 of these
rules, shall apply, however, to any reprints or reproductions of all or any
part of such material.
2.8. False or misleading statements. -- No solicitation subject to this
regulation shall be made by means of any proxy statement, form of proxy,
notice of meeting, or other communication, written or oral, containing any
statement which at the time and in the light of the circumstances under
which it is made, is false or misleading with respect to any material fact,
or which omits to state any material fact necessary in order to make the
statements therein not false or misleading or necessary to correct any
statement in any earlier communication with respect to the solicitation of
a proxy for the same meeting or subject matter which has become false or
misleading.
2.9. Prohibition of certain solicitations. -- No person making a
solicitation which is subject to this regulation shall solicit any undated
or postdated proxy or any proxy which provides that it shall be deemed to
be dated as of any date subsequent to the date on which it is signed by the
stockholder.
2.10. Special provisions applicable to election contests.
(a) Applicability. -- Section 2.10 of these rules shall apply to any
solicitation subject to this regulation by any person or group for the
purpose of opposing a solicitation subject to this regulation by any other
person or group with respect to the election or removal of directors at any
annual or special meeting of stockholders.
(b) Participant or participant in a solicitation.
(1) For purposes of Section 2.10 of these rules, the terms "Participant"
and "Participant in a Solicitation" include: (i) The insurer; (ii) any
director of the insurer and any nominee for whose election as a director
proxies are solicited; (iii) any other person, acting alone or with one or
more other persons, committees or groups, in organizing, directing or
financing the solicitation.
(2) For the purposes of Section 2.10 of these rules, the terms
"Participant" and "Participant in a Solicitation" do not include: (i) A
bank, broker or dealer who, in the ordinary course of business, lends money
or executes orders for the purchase or sale of stock and who is not
otherwise a participant; (ii) any person or organization retained or
employed by a participant to solicit stockholders or any person who merely
transmits proxy soliciting material or performs ministerial or clerical
duties; (iii) any person employed in the capacity of attorney, accountant,
or advertising, public relations or financial adviser and whose activities
are limited to the performance of his duties in the course of such
employment; (iv) any person regularly employed as an officer or employee of
the insurer or any of its subsidiaries or affiliates who is not otherwise a
participant; or (v) any officer or director of, or any person regularly
employed by any other participant if such officer, director or employee is
not otherwise a participant.
(c) Filing of information required by Section 4 of these rules.
(1) No solicitation subject to Section 2.10 of these rules shall be made by
any person other than the management of an insurer unless at least five (5)
business days prior thereto, or such shorter period as the Commissioner may
authorize upon a showing of good cause therefore, there has been filed,
with the Commissioner by or on behalf of each participant in such
solicitation, a statement in duplicate containing the information specified
by Section 4 of these rules and a copy of any material proposed to be
distributed to stockholders in furtherance of such solicitation. Where
preliminary copies of any materials are filed, distribution to stockholders
should be deferred until the Commissioner's comments have been received and
complied with.
(2) Within five (5) business days after a solicitation subject to Section
2.10 of these rules is made by the management of an insurer, or such longer
period as the Commissioner may authorize upon a showing of good cause
therefor, there shall be filed with the Commissioner by or on behalf of
each participant in such solicitation, other than the insurer, and by or on
behalf of each management nominee for director, a statement in duplicate
containing the information specified by Section 4 of these rules.
(3) If any solicitation on behalf of management or any other person has
been made, or if proxy material is ready for distribution, prior to a
solicitation subject to Section 2.10 of these rules, in opposition thereto,
a statement in duplicate containing the information specified in Section 4
of these rules shall be filed with the Commissioner, by or on behalf of
each participant in such prior solicitation, other than the insurer, as
soon as reasonably practicable after the commencement of the solicitation
in opposition thereto.
(4) If, subsequent to the filing of the statements required by Paragraphs
(1), (2) and (3) of this subdivision, additional persons become
participants in a solicitation subject to this rule, there shall be filed
with the Commissioner, by or on behalf of each such person, a statement in
duplicate containing the information specified by Section 4 of these rules,
within three (3) business days after such person becomes a participant or
such longer period as the Commissioner may authorize upon a showing of good
cause therefor.
(5) If any material change occurs in the facts reported in any statement
filed by or on behalf of any participant, an appropriate amendment to such
statement shall be filed promptly with the Commissioner.
(6) Each statement and amendment thereto filed pursuant to this paragraph
shall be part of the public files of the Commissioner.
(d) Solicitations prior to furnishing required proxy statement.
Notwithstanding the provisions of Subdivision (a) of Section 2.5 of these
rules, a solicitation subject to Section 2.10 of these rules, may be made
prior to furnishing stockholders a written proxy statement containing the
information specified in Section 3 of these rules with respect to such
solicitation: Provided, That
(1) The statements required by Subdivision (c) hereof are filed by or on
behalf of each participant in such solicitation.
(2) No form of proxy is furnished to stockholders prior to the time the
written proxy statement required by Subdivision (a), of Section 2.5 of
these rules, is furnished to such persons: Provided, however, That this
Paragraph (2) shall not apply where a proxy statement then meeting the
requirements of Section 3 of these rules has been furnished to
stockholders.
(3) At least the information specified in Paragraphs (2) and (3) of the
statements required by Subdivision (c) hereof to be filed by each
participant, or an appropriate summary thereof, are included in each
communication sent or given to stockholders in connection with the
solicitation.
(4) A written proxy statement containing the information specified in
Section 3 of these rules, with respect to a solicitation is sent or given
to stockholders at the earliest practicable date.
(e) Solicitations prior to furnishing required written proxy statements
-filing requirement. -- Two (2) copies of any soliciting material proposed
to be sent or given to stockholders prior to the furnishing of the written
proxy statement required by Subdivision (a) of 2.5 of these rules, shall be
filed with the Commissioner in preliminary form at least five (5) business
days prior to the date definitive copies of such material are first sent or
given to such persons or such shorter period as the Commissioner may
authorize upon a showing of good cause therefor.
(f) Application of this section to report. -- Notwithstanding the
provisions of Subdivisions (b) and (c) of 2.5 of these rules, two (2)
copies of any portion of the report referred to in Subdivision (b) of
Section 2.5 of these rules, which comments upon or refers to any
solicitation subject to Section 2.10 of these rules, or to any participant
in any such solicitation, other than the solicitation by the management,
shall be filed with the Commissioner, as proxy material subject to this
regulation. Such portion of the report shall be filed with the
Commissioner, in preliminary form, at least five (5) business days prior to
the date copies of the report are first sent or given to stockholders.
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Creation System Name : TechNet
This system is : TechNet
This user is : connie
topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 1991 prepared Apr 3 16:19:35 1995
Author : Admin
Subject :114-1-2
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3.1. Revocability of proxy. -- State whether or not the person giving the
proxy has the power to revoke it. If the right of revocation before the
proxy is exercised is limited or is subject to compliance with any formal
procedure, briefly describe such limitation or procedure.
3.2. Dissenters' rights of appraisal. -- Outline briefly the rights of
appraisal or similar rights of dissenting stockholders with respect to any
matter to be acted upon and indicate any statutory procedure required to be
followed by such stockholders in order to perfect their rights. Where such
rights may be exercised only within a limited time after the date of the
adoption of a proposal, the filing of a charter amendment or other similar
act, state whether the person solicited will be notified of such date.
3.3. Persons making solicitations not subject to Subsection 2.10 of these
rules.
(1) If the solicitation is made by the management of the insurer, so state.
Give the name of any director of the insurer who has informed the
management in writing that he intends to oppose any action intended to be
taken by the management and indicate the action which he intends to oppose.
(2) If the solicitation is made otherwise than by the management of the
insurer, state the names and addresses of the persons by whom and on whose
behalf it is made and the names and addresses of the persons by whom the
cost of solicitation has been or will be borne, directly or indirectly.
(3) If the solicitation is to be made by specially engaged employees or
paid solicitors, state (i) the material features of any contract or
arrangement for such solicitation and identify the parties, and (ii) the
cost or anticipated cost thereof.
3.4. Interest of certain persons in matters to be acted upon. -- Describe
briefly any substantial interest, direct or indirect, by stockholdings or
otherwise, of any director, nominee for election for director, officer and,
if the solicitation is made otherwise than on behalf of management, each
person on whose behalf the solicitation is made, in any matter to be acted
upon other than elections to office.
3.5. Stocks and principal stockholders.
(a) State, as to each class of voting stock of the insurer entitled to be
voted at the meeting, the number of shares outstanding and the number of
votes to which each class is entitled.
(b) Give the date as of which the record list of stockholders entitled to
vote at the meeting will be determined. If the right to vote is not limited
to stockholders of record on that date, indicate the conditions under which
other stockholders may be entitled to vote.
(c) If action is to be taken with respect to the election of directors and
if the persons solicited have cumulative voting rights, make a statement
that they have such rights and state briefly the conditions precedent to
the exercise thereof.
3.6. Nominees and directors. -- If action is to be taken with respect to
the election of directors furnish the following information, in tabular
form to the extent practicable, with respect to each person nominated for
election as a director and each other person whose term of office as a
director will continue after the meeting:
(a) Name each such person, state when his term of office or the term of
office for which he is a nominee will expire, and all other positions and
offices with the insurer presently held by him, and indicate which persons
are nominees for election as directors at the meeting.
(b) State his present principal occupation or employment and give the name
and principal business of any corporation or other organization in which
such employment is carried on. Furnish similar information as to all his
principal occupations or employments during the last five (5) years, unless
he is now a director and was elected to his present term of office by a
vote of stockholders at a meeting for which proxies were solicited under
this regulation.
(c) If he is or has previously been a director of the insurer, state the
period or periods during which he has served as such.
(d) State, as of the most recent practicable date, the approximate amount
of each class of stock of the insurer or any of its parents, subsidiaries
or affiliates other than directors' qualifying shares, beneficially owned
directly or indirectly by him. If he is not the beneficial owner of any
such stocks make a statement to that effect.
3.7. Remuneration and other transactions with management and others. --
Furnish the information reported or required in Item One of Schedule SIS
under the heading "Information Regarding Management and Directors" if
action is to be taken with respect to (a) the election of directors, (b)
any remuneration plan, contract or arrangement in which any director,
nominee for election as a director or officer of the insurer will
participate, (c) any pension or retirement plan in which any such person
will participate, or (d) the granting or extension to any such person of
any options, warrants or rights to purchase any stocks, other than warrants
or rights issued to stockholders, as such, on a pro rata basis. If the
solicitation is made on behalf of persons other than the management,
information shall be furnished only as to Item One-A of the aforesaid
heading of Schedule SIS.
3.8. Bonus, profit sharing and other remuneration plans. -- If action is to
be taken with respect to any bonus, profit sharing or other remuneration
plan of the insurer, furnish the following information:
(a) A brief description of the material features of the plan, each class of
persons who will participate therein, the approximate number of persons in
each such class, and the basis of such participation.
(b) The amounts which would have been distributable under the plan during
the last calendar year to (1) each person named in Section 3.7 of these
rules, (2) directors and officers as a group and (3) to all other employees
as a group, if the plan had been in effect.
(c) If the plan to be acted upon may be amended (other than by a vote of
stockholders) in a manner which would materially increase the cost thereof
to the insurer or to materially alter the allocation of the benefits as
between the groups specified in paragraph (b) of Section 3.8 of these
rules, the nature of such amendments should be specified.
3.9. Pension and retirement plans. -- If action is to be taken with
respect to any pension or retirement plan of the insurer, furnish the
following information:
(a) A brief description of the material features of the plan, each class of
persons who will participate therein, the approximate number of persons in
each such class and the basis of such participation.
(b) State (1) the approximate total amount necessary to fund the plan with
respect to past services, the period over which such amount is to be paid,
and the estimated annual payments necessary to pay the total amount over
such period; (2) the estimated annual payment to be made with respect to
current services; and (3) the amount of such annual payments to be made for
the benefit of (i) each person named in Section 3.7 of these rules, (ii)
directors and officers as a group, and (iii) employees as a group.
(c) If the plan to be acted upon may be amended (other than by a vote of
stockholders) in a manner which would materially increase the cost thereof
of the insurer or to materially alter the allocation of the benefits as
between the groups specified in Subparagraph (b) Subdivision (3) of Section
3.9 of these rules, the nature of such amendments should be specified.
3.10. Options, warrants or rights. -- If action is to be taken with
respect to the granting or extension of any options, warrants or rights
(all referred to herein as "Warrants") to purchase stock of the insurer or
any subsidiary or affiliate, other than warrants issued to all stockholders
on a pro rata basis, furnish the following information:
(a) The title and amount of stock called for or to be called for, the
prices, expiration dates and other material conditions upon which the
warrants may be exercised, the consideration received or to be received by
the insurer, subsidiary of affiliate for the granting or extension of the
warrants and the market value of the stock called for or to be called for
by the warrants, as of the latest practicable date.
(b) If known, state separately the amount of stock called for or to be
called for by warrants received or to be received by the following persons,
naming each such person: (1) Each person named in 3.7 of this section, and
(2) each other person who will be entitled to acquire five percent (5%) or
more of the stock called for or to be called for by such warrants.
(c) If known, state also the total amount of stock called for or to be
called for by such warrants, received or to be received by all directors
and officers of the company as a group and all employees, without naming
them.
3.11. Authorization or issuance of stock.
(a) If action is to be taken with respect to the authorization or issuance
of any stock of the insurer furnish the title, amount and description of
the stock to be authorized or issued.
(b) If the shares of stock are other than additional shares of common stock
of a class outstanding, furnish a brief summary of the following, if
applicable: Dividend, voting, liquidation, preemptive and conversion
rights, redemption and sinking fund provisions, interest rate and date of
maturity.
(c) If the shares of stock to be authorized or issued are other than
additional shares of common stock of a class outstanding, the Commissioner
may require financial statements comparable to those contained in the
annual report.
3.12. Mergers, consolidations, acquisitions and similar matters.
(a) If action is to be taken with respect to a merger, consolidation,
acquisition or similar matter, furnish in brief outline the following
information:
(1) The rights of appraisal or similar rights of dissenters with respect to
any matters to be acted upon. Indicate any procedure required to be
followed by dissenting stockholders in order to perfect such rights. (2)
The material features of the plan or agreement.
(3) The business done by the company to be acquired or whose assets are
being acquired.
(4) If available, the high and low sales prices for each quarterly period
within two (2) years.
(5) The percentage of outstanding shares which must approve the transaction
before it is consummated.
(b) For each company involved in a merger, consolidation or acquisition,
the following financial statements should be furnished:
(1) A comparative balance sheet as of the close of the last two (2) fiscal
years.
(2) A comparative statement of operating income and expenses for each of
the last two (2) fiscal years and, as a continuation of each statement, a
statement of earnings per share after related taxes and cash dividends paid
per share.
(3) A pro forma combined balance sheet and income and expenses statement
for the last fiscal year giving effect to the necessary adjustments with
respect to the resulting company.
3.13. Restatement of accounts. -- If action is to be taken with respect to
the restatement of any asset, capital, or surplus of the insurer, furnish
the following information:
(a) State the nature of the restatement and the date as of which it is to
be effective.
(b) Outline briefly the reasons for the restatement and for the selection
of the particular effective date.
(c) State the name and amount of each account affected by the restatement
and the effect of the restatement thereon.
3.14. Matters not required to be submitted. -- If action is to be taken
with respect to any matter which is not required to be submitted to a vote
of stockholders, state the nature of such matter, the reason for submitting
it to a vote of stockholders and what action is intended to be taken by the
management in the event of a negative vote on the matter by the
stockholders.
3.15. Amendment of charter, bylaws or other documents. -- If action is to
be taken with respect to any amendment of the insurer's charter, bylaws or
other documents as to which information is not required above, state
briefly the reasons for and general effect of such amendment and the vote
needed for its approval.
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Creation System Name : TechNet
This system is : TechNet
This user is : connie
topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 1980 prepared Mar 18 09:39:40 1995
Author : Admin
Subject :114-1-3
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A Participant (Other Than The Insurer) In A Proxy Solicitation In An
Election Contest. 4.1. Insurer. -- State the name and address of the
insurer.
4.2. Identity and background.
(a) State the following:
(1) Your name and business address.
(2) Your present principal occupation or employment and the name, principal
business and address of any corporation or other organization in which such
employment is carried on.
(b) State the following:
(1) Your residence address.
(2) Information as to all material occupations, positions, officers or
employments during the last ten (10) years, giving starting and ending
dates of each and the name, principal business and address of any business
corporation or other business organization in which each such occupation,
position, office or employment was carried on.
(c) State whether or not you are or have been a participant in any other
proxy contest involving this company or other companies within the past ten
(10) years. If so, identify the principals, the subject matter and your
relationship to the parties and the outcome.
(d) State whether or not, during the past ten (10) years, you have been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) and, if so, give dates, nature of conviction, name and
location of court, and penalty imposed or other disposition of the case. A
negative answer to this Paragraph (d) need not be included in the proxy
statement or other proxy soliciting material.
4.3. Interest in stock of the insurer.
(a) State the amount of each class of stock of the insurer which you own
beneficially, directly or indirectly.
(b) State the amount of each class of stock of the insurer which you own of
record but not beneficially.
(c) State with respect to the stock specified in Paragraph (a) and (b) of
these rules the amounts acquired within the past two (2) years, the dates
of acquisition and the amounts acquired on each date.
(d) If any part of the purchase price or market value of any of the stock
specified in Paragraph (c) of these rules is represented by funds borrowed
or otherwise obtained for the purpose of acquiring or holding such stock,
so state and indicate the amount of the indebtedness as of the latest
practicable date. If such funds were borrowed or obtained otherwise than
pursuant to a margin account or bank loan in the regular course of business
of a bank, broker or dealer, briefly describe the transaction and state the
names of the parties.
(e) State whether or not you are a party to any contracts, arrangements or
understandings with any person with respect to any stock of the insurer,
including, but not limited to, joint ventures, loan or option arrangements,
puts or calls, guarantees against loss or guarantees of profits, division
of losses or profits, or the giving or withholding of proxies. If so, name
the persons with whom such contracts, arrangements or understandings exist
and give the details thereof.
(f) State the amount of stock of the insurer owned beneficially, directly
or indirectly, by each of your associates and the name and address of each
such associate.
(g) State the amount of each class of stock of any parent, subsidiary or
affiliate of the insurer which you own beneficially, directly or
indirectly.
4.4. Further matters.
(a) Describe the time and circumstances under which you became a
participant in the solicitation and state the nature and extent of your
activities or proposed activities as a participant.
(b) Describe briefly and where practicable state the approximate amount of,
any material interest, direct or indirect, of yourself and of each of your
associates in any material transactions since the beginning of the
company's last fiscal year or in any material proposed transactions, to
which the company or any of its subsidiaries or affiliates was or is to be
a party.
(c) State whether or not you or any of your associates have any arrangement
or understanding with any person.
(1) With respect to any future employment by the insurer or its
subsidiaries or affiliates; or
(2) With respect to any future transactions to which the insurer or any of
its subsidiaries or affiliates will or may be a party.
If so, describe such arrangement or understanding and state the names of
the parties thereto.
4.5. Signature. -- The statement shall be dated and signed in the
following manner:
I certify that the statements made in this statement are true, complete,
and correct, to the best of my knowledge and belief.
___________________________ (Date)
Signature of participant or authorized representative)
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Creation System Name : TechNet
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This user is : connie
topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 2182 prepared Apr 4 14:21:49 1995
Author : Admin
Subject :114-1-4
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1.1. Scope. -- The purpose of this regulation is to assure truthful and
adequate disclosure of all material and relevant information in the
advertising of accident and sickness insurance. This purpose is intended
to be accomplished by the establishment of, and adherence to, certain
minimum standards and guidelines of conduct in the advertising of accident
and sickness insurance in a manner which prevents unfair competition among
insurers and is conducive to the accurate presentation and description to
the insurance buying public of a policy of such insurance offered through
various advertising media.
1.2. Authority. -- W. Va. Code e33-2-6 and e33-11-6
1.3. Filing Date. -- March 15, 1973
1.4. Effective Date. -- April 20, 1973
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 2031 prepared Apr 3 16:43:12 1995
Author : Admin
Subject :114-10-1
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10.1. Identification of plan or number of policies.
(a) When a choice of the amount of benefits is referred to, an
advertisement shall disclose that the amount of benefits provided depends
upon the plan selected and that the premium will vary with the amount of
the benefits selected.
(b) When an advertisement refers to various benefits which may be contained
in two (2) or more policies, other than group master policies, the
advertisement shall disclose that such benefits are provided only through a
combination of such policies.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 2041 prepared Apr 3 16:57:49 1995
Author : Admin
Subject :114-10-10
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11.1. Disparaging comparisons and statements. -- An advertisement shall
not directly or indirectly make unfair or incomplete comparisons of
policies or benefits or comparisons of noncomparable policies of other
insurers, and shall not disparage competitors, their policies, services or
business methods, and shall not disparage or unfairly minimize competing
methods of marketing insurance.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 2042 prepared Apr 3 16:58:11 1995
Author : Admin
Subject :114-10-11
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12.1. Jurisdictional licensing. -- An advertisement which is intended to
be seen or heard beyond the limits of the jurisdiction in which the insurer
is licensed shall not imply licensing beyond those limits.
12.2. Status of insurer. -- An advertisement shall not create the
impression directly or indirectly that the insurer, its financial condition
or status, or the payment of its claims, or the merits, desirability, or
advisability of its policy forms or kinds or plans of insurance are
approved, endorsed or accredited by any division or agency of this State of
the United States Government.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:08 1997
Entry # : 2043 prepared Apr 3 16:58:37 1995
Author : Admin
Subject :114-10-12
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13.1. Generally. -- The name of the actual insurer and the form number or
numbers advertised shall be identified and made clear in all of its
advertisements. An advertisement shall not use a trade name, any insurance
group designation, name of the parent company of the insurer, name of a
particular division of the insurer, service mark, slogan, symbol or other
device which without disclosing the name of the actual insurer would have
the capacity and tendency to mislead or deceive as to the true identity of
the insurer.
13.2. Association with government agencies. -- No advertisement shall use
any combination of words, symbols or physical materials which by their
content, phraseology, shape, color or other characteristics are so
similar to combinations of words, symbols or physical materials used by
agencies of the federal government or of this State, or otherwise appear to
be of such a nature that it tends to confuse or mislead prospective
insureds into believing that the solicitation is in some manner connected
with an agency of the municipal, state or federal government.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2044 prepared Apr 3 16:59:33 1995
Author : Admin
Subject :114-10-13
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4.1. Method of disclosure of required information. -- All information
required to be disclosed by this regulation shall be set out conspicuously
and in close conjunction with the statements to which such information
relates or under appropriate captions of such prominence that such
information shall not be minimized, rendered obscure or presented in
ambiguous fashion or intermingled with the context of the advertisement so
as to be confusing or misleading.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2045 prepared Apr 3 16:59:58 1995
Author : Admin
Subject :114-10-14
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<A TARGET="114-10-15">114-10-15</A>
15.1. Generally.
(a) An advertisement of an individual policy shall not directly or by
implication represent that a contract or combination of contracts is an
introductory, initial or special offer, or that applicants will receive
substantial advantages not available at a later date, or that the offer is
available only to a specified group of individuals, unless such is the
fact. An advertisement shall not contain phrases describing an enrollment
period as "Special," "Limited," or similar words or phrases when the
insurer uses such enrollment periods as the usual method of advertising
accident and sickness insurance.
(b) An enrollment period during which a particular insurance product may be
purchased on an individual basis shall not be offered within this State
unless there has been a lapse of not less than six (6) months between the
close of the immediately preceding enrollment period for the same product
and the opening of the new enrollment period. The advertisement shall
indicate the date by which the applicant must mail the application which
shall be not less than ten (10) days and not more than forty (40) days from
the date that such enrollment period is advertised for the first time. This
section applies to all advertising media, i.e., mail, newspapers, radio,
television, magazines and periodicals, used by any one (1) insurer. This
section is inapplicable to solicitations of employees or members of a
particular group or association which otherwise would be eligible under
specific provisions of the Insurance Code for group, blanket or franchise
insurance. The phrase "Any One Insurer" includes all the affiliated
companies of a group of insurance companies under common management or
control.
(c) This section prohibits any statement or implication to the effect that
only a specific number of policies will be sold, or that a time is fixed
for the discontinuance of the sale of the particular policy advertised
because of special advantages available in the policy, unless such is the
fact.
(d) The phrase "A Particular Insurance Product" in Paragraph (b) of this
section means an insurance policy which provides benefits substantially
different from those contained in any other policy. Different terms of
renewability; an increase or decrease in the dollar amounts of benefits; an
increase or decrease in any elimination period or waiting period from those
available during an enrollment period for another policy shall not be
sufficient to constitute the product being offered as a different product
eligible for concurrent or overlapping enrollment periods.
15.2. Reduced initial premium. -- An advertisement shall not offer a
policy which utilizes a reduced initial premium rate in a manner which
overemphasizes the availability and the amount of the reduced initial
premium. When an insurer charges an initial premium that differs in amount
from the amount of the renewal premium payable on the same mode, the
advertisement shall not display the amount of the reduced initial premium
either more frequently or more prominently than the renewal premium, and
both the reduced initial premium and the renewal premium must be stated in
juxtaposition in each portion of the advertisement where the reduced
initial premium appears.
15.3. Special awards. -- Special awards, such as a "Safe Drivers' Award"
shall not be used in connection with advertisements of accident or accident
and sickness insurance.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2046 prepared Apr 3 17:00:54 1995
Author : Admin
Subject :114-10-15
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<A TARGET="114-10-16">114-10-16</A>
16.1. Statements about an insurer. -- An advertisement shall not contain
statements which are untrue in fact, or by implication misleading, with
respect to the assets, corporate structure, financial standing, age or
relative position of the insurer in the insurance business. An
advertisement shall not contain a recommendation by any commercial rating
system unless it clearly indicates the purpose of the recommendation and
the limitations of the scope and extent of the recommendation.
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Creation System Name : TechNet
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2047 prepared Apr 3 17:01:43 1995
Author : Admin
Subject :114-10-16
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<A TARGET="114-10-17"></A>
17.1. Advertising file. -- Each insurer shall maintain at its home or
principal office a complete file containing every printed, published or
prepared advertisement of its individual policies and typical printed,
published or prepared advertisements of its blanket, franchise and group
policies hereafter disseminated in this or any other state whether or not
licensed in such other state, with a notation attached to each such
advertisement which shall indicate the manner and extent of distribution
and the form number of any policy advertised. Such file shall be subject
to regular and periodic inspection by this Department. All such
advertisements shall be maintained in said file for a period of either four
(4) years or until the filing of the next regular report of examination of
the insurer, whichever is the longer period of time.
17.2. Certificate of compliance. -- Each insurer required to file an
annual statement which is now or which hereafter becomes subject to the
provisions of this regulation must file with this Department with its
annual statement a Certificate of Compliance executed by an authorized
officer of the insurer wherein it is stated that to the best of his
knowledge, information and belief the advertisements which were
disseminated by the insurer during the preceding statement year complied or
were made to comply in all respects with the provisions of this regulation
and the insurance laws of this State as implemented and interpreted by this
regulation.
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Creation System Name : TechNet
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2048 prepared Apr 3 17:02:29 1995
Author : Admin
Subject :114-10-17
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<A TARGET="114-10-18"></A>
18.1. Filing of advertisements. -- The Commissioner in his discretion may
require that an insurer file with this Department, for review prior to use,
direct response advertising materials. When so required, such advertising
materials must be filed not less than a reasonable time to be specified by
the Commissioner prior to the date the insurer desires to use the
advertisement in West Virginia.
18.2. Interpretive guidelines; adoption by Commissioner. -- To facilitate
compliance with this regulation, the Commissioner may adopt appropriate
interpretive guidelines. To the extent not inconsistent with the statutes
of this State and this regulation, such guidelines shall be consistent with
the interpretive guidelines adopted and revised from time to time by the
National Association of Insurance Commissioners for use by the various
states in the interpretation of these regulations.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2049 prepared Apr 3 17:03:05 1995
Author : Admin
Subject :114-10-18
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<A TARGET="114-10-19"></A>
19.1. Partial invalidity. -- If any provision of this regulation shall be
held invalid, the remainder of the regulation shall not be affected
thereby.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2050 prepared Apr 3 17:03:35 1995
Author : Admin
Subject :114-10-19
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<A TARGET="114-10-2"></A>
(a) This regulation shall apply to any accident and sickness insurance
"Advertisement," as that term is hereinafter defined, intended for
presentation, distribution or dissemination in this State when such
presentation, distribution or dissemination is made either directly or
indirectly by or on behalf of an insurer, agent, broker or solicitor as
those terms are defined in the Insurance Code of this State and this
regulation.
(b) Every insurer shall establish and at all times maintain a system of
control over the content, form and method of dissemination of all
advertisements of its policies. All such advertisements, regardless of by
whom written, created, designed or presented, shall be the responsibility
of the insurer whose policies are so advertised.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2032 prepared Apr 3 16:43:43 1995
Author : Admin
Subject :114-10-2
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<A TARGET="114-10-20"></A>
20.1. Penalties. -- Any insurer failing to comply with the requirements of
this regulation shall be subject to such penalties as may be appropriate
under the laws of West Virginia. TITLE 114 LEGISLATIVE RULES INSURANCE
COMMISSIONER
SERIES 11 DISCLOSURE AND DECEPTIVE PRACTICES IN THE ADVERTISEMENT,
SOLICITATION AND SALE OF LIFE INSURANCE
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2051 prepared Apr 3 17:04:05 1995
Author : Admin
Subject :114-10-20
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<A TARGET="114-10-3"></A>
3.1. Advertisement. -- "Advertisement" for the purpose of this regulation
shall include:
(a) Printed and published material, audio visual material and descriptive
literature of an insurer used in direct mail, newspapers, magazines, radio
scripts, television scripts, billboards and similar displays;
(b) Descriptive literature and sales aids of all kinds issued by an
insurer, agent or broker for presentation to members of the insurance
buying public, including, but not limited to, circulars, leaflets,
booklets, depictions, illustrations and form letters; and (c) Prepared
sales talks, presentations and material for use by agents, brokers and
solicitors.
3.2. Policy. -- "Policy" for the purpose of this regulation shall include
any policy, plan, certificate, contract, agreement, statement of coverage,
rider or endorsement which provides accident or sickness benefits, or
medical, surgical or hospital expense benefits, whether on an indemnity,
reimbursement, service or prepaid basis, except when issued in connection
with another kind of insurance other than life, and except disability,
waiver of premium and double indemnity benefits included in life insurance
and annuity contracts.
3.3. Insurer. -- "Insurer" for the purpose of this regulation shall
include any individual, corporation, association, partnership, reciprocal
exchange, inter-insurer, Lloyds, fraternal benefit society, health
maintenance organization and any other legal entity which is defined as an
"Insurer" in the Insurance Code of this State and is engaged in the
advertisement of a policy as "Policy" is herein defined.
3.4. Exception. -- "Exception" for the purpose of this regulation shall
mean any provision in a policy whereby coverage for a specified hazard is
entirely eliminated; it is a statement of a risk not assumed under the
policy.
3.5. Reduction. -- "Reduction" for the purpose of this regulation shall
mean any provision which reduces the amount of the benefit; a risk of loss
is assumed but payment upon the occurrence of such loss is limited to some
amount or period less than would be otherwise payable had such reduction
not been used.
3.6. Limitation. -- "Limitation" for the purpose of this regulation shall
mean any provision which restricts coverage under the policy other than an
exception or a reduction.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2033 prepared Apr 3 16:44:20 1995
Author : Admin
Subject :114-10-3
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<A TARGET="114-10-4"></A>
4.1. Method of disclosure of required information. -- All information
required to be disclosed by this regulation shall be set out conspicuously
and in close conjunction with the statements to which such information
relates or under appropriate captions of such prominence that such
information shall not be minimized, rendered obscure or presented in
ambiguous fashion or intermingled with the context of the advertisement so
as to be confusing or misleading.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2034 prepared Apr 3 16:44:54 1995
Author : Admin
Subject :114-10-4
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<A TARGET="114-10-5"></A>
5.1. Form and content of advertising.
(a) The format and content of an advertisement of an accident or sickness
insurance policy shall be sufficiently complete and clear to avoid
deception or the capacity or tendency to mislead or deceive. Whether an
advertisement has a capacity or tendency to mislead or deceive shall be
determined by the Insurance Commissioner from the overall impression that
the advertisement may reasonably be expected to create upon a person of
average education or intelligence, within the segment of the public to
which it is directed.
(b) Advertisements shall be truthful and not misleading in fact or in
implication. Words or phrases, the meaning of which is clear only by
implication or by familiarity with insurance terminology, shall not be
used.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
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Entry # : 2036 prepared Apr 3 16:51:38 1995
Author : Admin
Subject :114-10-5
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<A TARGET="114-10-6"></A>
Payable.
6.1. Deceptive words, phrases or illustrations prohibited. (a) No
advertisement shall omit information or use words, phrases, statements,
references or illustrations if the omission of such information or use of
such words, phrases, statements, references or illustrations has the
capacity, tendency or effect of misleading or deceiving purchasers or
prospective purchasers as to the nature or extent of any policy benefit
payable, loss covered or premium payable. The fact that the policy offered
is made available to a prospective insured for inspection prior to
consummation of the sale or an offer is made to refund the premium if the
purchaser is not satisfied, does not remedy misleading statements.
(b) No advertisement shall contain or use words or phrases such as, "All";
"Full"; "Complete"; "Comprehensive"; "Unlimited"; "Up To"; "As High As";
"This policy will help pay your hospital and surgical bills"; "This policy
will help fill some of the gaps that medicare and your present insurance
leave out"; "This policy will help to replace your income" (when used to
express loss of time benefits); or similar words and phrases, in a manner
which exaggerates any benefits beyond the terms of the policy.
(c) An advertisement shall not contain descriptions of a policy
limitation, exception or reduction, worded in a positive manner to imply
that it is a benefit, such as, describing a waiting period as a "Benefit
Builder," or stating "Even preexisting conditions are covered after two (2)
years." Words and phrases used in an advertisement to describe such policy
limitations, exceptions and reductions shall fairly and accurately describe
the negative features of such limitations, exceptions and reductions in the
policy offered.
(d) No advertisement of a benefit for which payment is conditional upon
confinement in a hospital or similar facility shall use words or phrases
such as "Tax Free"; "Extra Cash"; "Extra Income"; "Extra Pay"; or
substantially similar words or phrases because such words and phrases have
the capacity, tendency or effect of misleading the public into believing
that the policy advertised will, in some way, enable them to make a profit
from being hospitalized.
(e) No advertisement of a hospital or other similar facility confinement
benefit shall advertise that the amount of the benefit is payable on a
monthly or weekly basis when, in fact, the amount of the benefit payable is
based upon a daily pro rata basis relating to the number of days of
confinement. When the policy contains a limit on the number of days of
coverage provided, such limit must appear in the advertisement.
(f) No advertisement of a policy covering only one disease or a list of
specified diseases shall imply coverage beyond the terms of the policy.
Synonymous terms shall not be used to refer to any disease so as to imply
broader coverage than is the fact.
(g) An advertisement for a policy providing benefits for specified
illnesses only, such as cancer or for specified accidents, shall clearly
and conspicuously in prominent type state the limited nature of the policy.
The statement shall be worded in language identical to or substantially
similar to the following: "This is a Limited Policy"; "This is a Cancer
Only Policy"; "This is an Automobile Accident Only Policy."
(h) An advertisement of a direct response insurance product shall not imply
that because "No insurance agent will call and no commissions will be paid
to agents" that it is "A Low Cost Plan," or use other similar words or
phrases because the cost of advertising and servicing such policies is a
substantial cost in the marketing of a direct response insurance product.
6.2. Exceptions, reductions and limitations.
(a) When an advertisement refers to either a dollar amount, or a period of
time for which any benefit is payable, or the cost of the policy, or
specific policy benefit, or the loss for which such benefit is payable, it
shall also disclose those exceptions, reductions and limitations affecting
the basic provisions of the policy without which the advertisement would
have the capacity or tendency to mislead or deceive.
(b) When a policy contains a waiting, elimination, probationary or similar
time period between the effective date of the policy and the effective date
of coverage under the policy or a time period between the date a loss
occurs and the date benefits begin to accrue for such loss, an
advertisement which is subject to the requirements of Paragraph (a) of this
section shall disclose the existence of such periods.
(c) An advertisement shall not use the words "Only"; "Just"; "Merely";
"Minimum" or similar words or phrases to describe the applicability of any
exceptions and reductions, such as: "This policy is subject to the
following minimum exceptions and reductions."
6.3. Preexisting conditions.
(a) An advertisement which is subject to the requirements of Section 6.2 of
these rules, shall in negative terms, disclose the extent to which any loss
is not covered if the cause of such loss is traceable to a condition
existing prior to the effective date of the policy. The use of the term
"Preexisting Condition" without an appropriate definition or description is
prohibited.
(b) When a policy does not cover losses resulting from preexisting
conditions, no advertisement of the policy shall state or imply that the
applicant's physical condition or medical history will not affect the
issuance of the policy or payment of a claim thereunder. This section
prohibits the use of the phrase "No Medical Examination Required" and
phrases of similar import, but does not prohibit explaining "Automatic
Issue." If an insurer requires a medical examination for a specified
policy, the advertisement shall disclose that a medical examination is
required.
(c) When an advertisement contains an application form to be completed by
the applicant and return by mail for a direct response insurance project,
such application form shall contain a question or statement which reflects
the preexisting condition provisions of the policy immediately preceding
the blank space for the applicant's signature. For example, such an
application form shall contain a question or statement substantially as
follows:
"Do you understand that this policy will not pay benefits during the first
_______ year (s) after the issue date for a disease or physical condition
which you now have or have had in the past?" ( ) YES
Or substantially the following statement:
"I understand that the policy applied for will not pay benefits for any
loss incurred during the first _______ year (s) after the issue date on
account of disease or physical condition which I now have or have had in
the past."
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Creation System Name : TechNet
This system is : TechNet
This user is : connie
topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2037 prepared Apr 3 16:55:41 1995
Author : Admin
Subject :114-10-6
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<A TARGET="114-10-7"></A>
7.1. Necessity for disclosing policy provisions relating to renewability,
cancelability and termination. -- When an advertisement refers to either a
dollar amount or a period of time for which any benefit is payable, or the
cost of the policy, or specific policy benefit, or the loss for which such
benefit is payable, it shall disclose the provisions relating to
renewability, cancelability and termination and any modification of
benefits, losses covered or premiums because of age or for other reasons,
in a manner which shall not minimize or render obscure the qualifying
conditions.
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Creation System Name : TechNet
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2038 prepared Apr 3 16:56:07 1995
Author : Admin
Subject :114-10-7
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<A TARGET="114-10-8"></A>
8.1. Testimonials; generally. -- Testimonials used in advertisements must
be genuine, represent the current opinion of the author, be applicable to
the policy advertised and be accurately reproduced. The insurer, in using
a testimonial, makes as its own all of the statements contained therein,
and the advertisement, including such statements, is subject to all of the
provisions of this regulation.
8.2. Financial interests; disclosure required. -- If the person making a
testimonial, an endorsement or an appraisal has a financial interest in the
insurer or a related entity as a stockholder, director, officer, employee
or otherwise, such fact shall be disclosed in the advertisement. If a
person is compensated for making a testimonial, endorsement or appraisal,
such fact shall be disclosed in the advertisement by language substantially
as follows: "Paid Endorsement." This section does not require disclosure of
union "Scale" wages required by union rules if the payment is actually for
such "Scale" for television or radio performances. The payment of
substantial amounts, directly or indirectly, for "Travel And Entertainment"
for filming or recording of television and radio advertisements remove the
filming or recording from the category of an unsolicited testimonial and
require disclosure of such compensation.
8.3. Proprietary relationships; disclosure required. -- An advertisement
shall not state or imply that an insurer or a policy has been approved or
endorsed by any individual, group of individuals, society, association or
other organizations, unless such is the fact, and unless any proprietary
relationship between an organization and the insurer is disclosed. If the
entity making the endorsement or testimonial has been formed by the insurer
or is owned or controlled by the insurer or the person or persons who own
or control the insurer, such fact shall be disclosed in the advertisement.
8.4. Claim data. -- When a testimonial refers to benefits received under a
policy, the specific claim data, including claim number, date of loss and
other pertinent information shall be retained by the insurer for inspection
for a period of four (4) years or until the filing of the next regular
report on examination of the insurer, whichever is the longer period of
time.
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topic no 93 Topic Name : Series 14, Unfair Trade Practices
current date Wed Jul 9 09:42:09 1997
Entry # : 2039 prepared Apr 3 16:56:51 1995
Author : Admin
Subject :114-10-8
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<A TARGET="114-10-9"></A>
9.1. Generally. -- An advertisement relating to the dollar amounts of
claims paid, the number of persons insured, or similar statistical
information relating to any insurer or policy shall not use irrelevant
facts, and shall not be used unless it accurately reflects all of the
relevant facts. Such an advertisement shall not imply that such statistics
are derived from the policy advertised unless such is the fact, and when
applicable to other policies or plans shall specifically so state.
9.2. Claims settlement. -- An advertisement shall not represent or imply
that claim settlements by the insurer are "Liberal" or "Generous," or use
words of similar import, or that claim settlements are or will be beyond
the actual terms of the contract. An unusual amount paid for unique claim
for the policy advertised is misleading and shall not be used.
9.3. Source. -- The source of any statistics used in an advertisement
shall be identified in such advertisement.