Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.666 - Introductory, initial, or special offers

Current through Vol. 24-12, July 15, 2024
Rule 16.
(1) An
				advertisement of an individual policy shall not directly or by implication
				represent that a contract or combination of contracts is an introductory,
				initial, or special offer, that applicants will receive substantial advantages
				not available at a later date, or that the offer is available only to a
				specified group of individuals, unless that is the fact. An advertisement shall
				not contain phrases describing an enrollment period as "special" or "limited"
				or use similar words or phrases when the insurer uses the enrollment periods as
				the usual method of advertising accident and sickness insurance. The use of
				such words or phrases is permitted if the enrollment periods for a policy are
				separated by not less than 3 months.
(2) An enrollment period during which a
				particular insurance product may be purchased on an individual basis shall not
				be offered within this state unless there has been a lapse of not less than 3
				months between the close of the immediately preceding enrollment period for the
				same product and the opening of the new enrollment period with not more than 2
				enrollment periods in 1 calendar year for a particular insurance product. The
				advertisement shall indicate the date by which the applicant shall mail the
				application, which shall be not less than 10 days and not more than 40 days
				from the date that the enrollment period is advertised for the first time. This
				rule applies to all advertising media by any insurer. This rule does not apply
				to solicitations of employees or members of a particular group or association
				which otherwise would be eligible under specific provisions of the code for
				group, blanket, or franchise insurance. The phrase "any insurer" includes all
				the affiliated companies of a group of insurance companies under common
				management or control.
(3) This
				rule prohibits a statement or implication to the effect that only a specific
				number of policies will be sold or that a time is fixed for the discontinuance
				of the sale of the particular policy advertised because of special advantages
				available in the policy, unless that is the fact.
(4) The phrase "a particular insurance
				product" in subrule (2) of this rule means an insurance policy which provides
				substantially different benefits than those contained in any other policy.
				Different terms of renewability, an increase or decrease in the dollar amounts
				of benefits, or an increase or decrease in an elimination period or waiting
				period from those policies available during an enrollment period for another
				policy shall not be sufficient to constitute the product being offered as a
				different product eligible for concurrent or overlapping enrollment
				periods.
(5) Special awards, such
				as a safe driver award, shall not be used in connection with advertisements of
				accident or accident and sickness insurance.
(6) An advertisement shall not offer a policy
				which utilizes a reduced initial premium in a manner which overemphasizes the
				availability and the amount of the reduced initial premium. When an insurer
				charges an initial premium that differs in amount from the renewal premium
				payable on the same mode, the advertisement shall not display the amount of the
				reduced initial premium either more frequently or more prominently than the
				renewal premium, and both the reduced initial premium and the renewal premium
				shall be stated in juxtaposition in each portion of the advertisement where the
				reduced initial premium appears. The term "juxtaposition" means side by side or
				immediately above or below.