Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 27.00 - Military Sales Practices › Section 27.06 - Practices Declared False, Misleading, Deceptive or Unfair Regardless of Location

Current through Register 1525, July 5, 2024
(1) 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 acts or practices prohibited by M.G.L. c. 176D,
			 § 3:
(a) 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. 211
			 CMR 27.06(1) does not prohibit assisting a service member by providing insurer
			 or premium information necessary to complete any allotment form.
(b) 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 211 CMR
			 27.06, a formal banking relationship is established when the depository
			 institution:
1. 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
2. permits the service member to make
			 deposits and withdrawals unrelated to the payment or processing of insurance
			 premiums.
(c) 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 211 CMR 27.06(1)(b).
(d) 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.
(e) 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.
(f) 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.
(g) Knowingly offering or giving anything of
			 value to a service member for his or her attendance to any event where an
			 application for life insurance is solicited.
(h) Advising a service member 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.