Iowa Administrative Code › Agency 191 - Insurance Division › Property and Casualty Insurance › Chapter 25 - Military Sales Practices › Rule 191-25.6 - Practices Declared False, Misleading, Deceptive or Unfair Regardless of Location

Current through Register Vol. 47, No. 3, July 24, 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:
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'spay 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 subrule 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 this rule, 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 the
				regulations promulgated thereunder; 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 paragraph
				25.6(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 representatives or agents 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 with a pay grade of E-4 or below for the service
				member's attendance at any event where an application for life insurance is
				solicited.
h. Advising a service
				member with a pay grade of E-4 or below to change the service member's income
				tax withholding or state of legal residence for the sole purpose of increasing
				disposable income to purchase life insurance.