Rule 20:06:21:31 Standards for marketing -- Requirements.
20:06:21:31. Standards for marketing -- Requirements.
Each insurer, health care service plan, or other entity marketing long-term
care insurance coverage in this state, directly or through its producers,
(1) Establish marketing
procedures and agent training requirements to assure that any comparison of
policies by its agents or other producers will be fair and accurate;
(2) Establish marketing
procedures and agent training requirements to assure that excessive insurance
is not sold or issued;
(3) Display prominently by
type, stamp, or other means, on the first page of the outline of coverage and
policy the following: "Notice to buyer: This policy may not cover all of
the costs associated with long-term care incurred by the buyer during the period
of coverage. The buyer is advised to review carefully all policy
(4) Inquire and otherwise
make every reasonable effort to identify whether a prospective applicant or
enrollee for long-term care insurance already has accident and sickness or
long-term care insurance and the types and amounts of any such insurance;
(5) Establish auditable
procedures for verifying compliance with this section; and
(6) Provide an explanation
of contingent benefit upon lapse provided for in subdivision 20:06:21:58(4)(c)
and, if applicable, the additional contingent benefit upon lapse provided to
policies with fixed or limited premium paying periods in subdivision
If the state in which the policy or
certificate is to be delivered or issued for delivery has a senior insurance
counseling program approved by the director in the state in which the
certificate was issued, the insurer shall, at solicitation, provide written
notice to the prospective policyholder or certificateholder that such a program
is available and the name, address, and telephone number of the program.
22 SDR 97, effective December 18, 1995; 33 SDR 230, effective July 2, 2007.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4, 58-17B-12.
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