Illinois Administrative Code › Title 50 - INSURANCE › Part 2605 - MILITARY SALES PRACTICES › Section 2605.60 - Practices Declared False, Misleading, Deceptive or Unfair Regardless of Location

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 following acts or practices by an insurer or insurance producer constitute
			 corrupt practices or improper influences or inducements and are declared to be
			 false, misleading, deceptive or unfair:
1)
			 Submitting, processing or assisting in the submission or processing of any
			 allotment form or similar device used by the United States Armed Forces to
			 direct a service member's pay to a third party for the purchase of life
			 insurance. The foregoing includes, but is not limited to, using or assisting in
			 using a service member's MyPay account or other similar internet or electronic
			 medium for such purposes. This subsection (a)(1) does not prohibit assisting a
			 service member by providing insurer or premium information necessary to
			 complete any allotment form.
2)
			 Knowingly receiving funds from a service member for the payment of premium from
			 a depository institution with which the service member has no formal banking
			 relationship. For purposes of this Section, a formal banking relationship is
			 established when the depository institution:
A) provides the service member a deposit
			 agreement and periodic statements and makes the disclosures required by the
			 Truth in Savings Act (
			 12 USC 4301
			 et seq.) and the regulations promulgated under that Act; and
B) permits the service member to make
			 deposits and withdrawals unrelated to the payment or processing of insurance
			 premiums.
3) Employing
			 any device or method or entering into any agreement whereby funds received from
			 a service member by allotment for the payment of insurance premiums are
			 identified on the service member's Leave and Earnings Statement or equivalent
			 or successor form as "Savings" or "Checking" and where the service member has
			 no formal banking relationship as defined in subsection (a)(2).
4) Entering into any agreement with a
			 depository institution for the purpose of receiving funds from a service member
			 whereby the depository institution, with or without compensation, agrees to
			 accept direct deposits from a service member with whom it has no formal banking
			 relationship.
5) Using DoD
			 personnel, directly or indirectly, as a representative or agent in any official
			 or unofficial capacity, with or without compensation, with respect to the
			 solicitation or sale of life insurance to service members who are junior in
			 rank or grade, or to the family members of such personnel.
6) Offering or giving anything of value,
			 directly or indirectly, to DoD personnel to procure their assistance in
			 encouraging, assisting or facilitating the solicitation or sale of life
			 insurance to another service member.
7) Knowingly offering or giving anything of
			 value to a service member with a pay grade of E-4 or below for his or her
			 attendance at any event where an application for life insurance is
			 solicited.
8) Advising a service
			 member with a pay grade of E-4 or below to change his or her income tax
			 withholding or State of legal residence for the sole purpose of increasing
			 disposable income to purchase life insurance.