North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-14 - Military Sales Practices › Section 45-04-14-04 - Practices declared false, misleading, deceptive, or unfair regardless of location

Current through Supplement No. 393, July, 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, including using or assisting in using a service member's "MyPay"
				account or other similar internet or electronic medium. This subdivision 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
				section, 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 adopted
				under it; 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 when the service member has no formal banking relationship as
				defined in subdivision 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 department of defense 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 department of defense 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 attending any
				event where an application for life insurance is solicited; or
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.