NAC687B.273. Standards of practice for marketing.

     1. An issuer, directly or through its producers, shall:

     (a) Establish marketing procedures to ensure that any comparison of policies to supplement Medicare by its agents or other producers is fair and accurate.

     (b) Establish marketing procedures to ensure that excessive insurance is not sold or issued.

     (c) Establish marketing procedures which set forth a mechanism or formula for determining whether a replacement policy or certificate contains benefits clearly and substantially greater than the benefits under the replaced policy.

     (d) Display prominently by type, stamp or other appropriate means, on the first page of the policy to supplement Medicare the following notice:

“Notice to buyer: This policy may not cover all of your medical expenses.”

     (e) Inquire and otherwise make every reasonable effort to determine whether a prospective applicant or person enrolled for a policy to supplement Medicare has accident and sickness insurance and identify the types and amounts of any such insurance.

     (f) Establish procedures that may be audited for verifying compliance with this section.

     2. In addition to the practices prohibited in chapters 686A of NRS and NAC, the following practices are prohibited:

     (a) Knowingly making any misleading representation or incomplete or fraudulent comparison of any policies of insurance or issuers to induce or tend to induce any person to allow to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on or convert any policy of insurance or to take out a policy of insurance with another issuer, commonly referred to as “twisting.”

     (b) High-pressure tactics, including:

          (1) Any method of marketing that has the effect of or tends to induce the purchase of insurance through force, fright or threat, whether explicit or implied; and

          (2) Undue pressure to purchase or recommend the purchase of insurance.

     (c) Directly or indirectly making use of any method of marketing which fails to disclose in a conspicuous manner that a purpose of the method of marketing is the solicitation of insurance and that contact will be made by an agent or insurance company, commonly referred to as “cold lead advertising.”

     (d) Using the terms “Medicare Supplement,” “Medigap,” “Medicare Wrap-Around” or words of similar import in a policy to supplement Medicare or a certificate if the policy or certificate does not comply with the provisions of NAC 687B.200 to 687B.330, inclusive.

     (Added to NAC by Comm’r of Insurance, eff. 11-16-90; A 7-16-92, eff. 7-30-92)