Rule 20:06:21:32 Standards for marketing -- Prohibited practices.
20:06:21:32. Standards for marketing -- Prohibited practices.
In addition to the practices prohibited in SDCL chapter 58-33, the following practices are prohibited:
(1) Twisting. Knowingly
making any misleading representation or incomplete or fraudulent comparison of
any insurance policies or insurers for the purpose of inducing or tending to
induce a person to lapse, forfeit, surrender, terminate, retain, pledge,
assign, borrow on, or convert an insurance policy or to take out a policy of
insurance with another insurer;
(2) High pressure tactics.
Employing any method of marketing inducing, having the effect of inducing, or
tending to induce the purchase of insurance through force, fright, explicit or
implied threat, or undue pressure to purchase or recommend the purchase of
(3) Cold lead advertising.
Making use directly or indirectly of a method of marketing which fails to
disclose in a conspicuous manner that a purpose of the method of marketing is
solicitation of insurance and that contact will be made by an insurance agent
or insurance company.
22 SDR 97, effective December 18, 1995.
Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-1, 58-17B-12.
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