Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.9 - Military Sales Practices › Rule 6.6.907 - PRACTICES DECLARED FALSE, MISLEADING, DECEPTIVE, OR UNFAIR REGARDLESS OF LOCATION

Current through Register Vol. 13, 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:
(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. This rule does not prohibit assisting a
				service member by providing insurer or premium information necessary to
				complete any allotment form; or
(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:
(i) provides the service member a deposit
				agreement and periodic statements and makes the disclosures required by
				theTruth in Savings Act, 12
				U.S.C. section 4301 et seq., and the
				regulations promulgated thereunder; and
(ii) 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 (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 with a pay grade of E-4 or below for his or her
				attendance to any event where an application for life insurance is solicited;
				and
(h) 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.