US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 44
               MEDICARE SUPPLEMENT INSURANCE MINIMUM STANDARDS
    41-4406.  DISCLOSURE STANDARDS. (1) 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.
    (2)  The director may prescribe the format and content of the outline of
coverage required by 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:
    (a)  A description of the principal benefits and coverage provided in the
    policy;
    (b)  A statement of the renewal provisions, including any reservation by
    the issuer of a right to change premiums;
    (c)  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 director 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 director may require by rule that
the informational 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
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 director 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 sickness insurance policies sold to persons
eligible for medicare, other than:
    (a)  Medicare supplement policies; or
    (b)  Disability income policies.
    (5)  The director may adopt reasonable rules to govern the full and fair
disclosure of the information in connection with the replacement of accident
and sickness policies, or certificates by persons eligible for medicare.