California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 7.5 - Unfair or Deceptive Acts or Practices in the Business of Insurance › Article 1.5 - Sales to Military Personnel › Section 2695.26 - Practices Declared False, Misleading, Deceptive or Unfair Regardless of Location

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  The following acts or practices by an insurer or insurance producer constitute
				  corrupt practices, 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 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
				  U.S.C. §
													4301 et seq. and the
				  regulations promulgated thereunder; 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 Paragraph (a)(2) of this Section
				  2695.26.
(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 for said service member's attendance to any event
				  where an application for life insurance is solicited.
(8) Advising a service member to change said
				  service member's income tax withholding or State of legal residence for the
				  sole purpose of increasing disposable income to purchase life
				  insurance.