Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 21 - TRADE PRACTICES › Subchapter HH - MILITARY SALES PRACTICES › Section 21.4206 - Practices Declared Deceptive or Unfair Regardless of Location

Current through Reg. 49, No. 28; July 12, 2024
(a) The following acts or practices by an
				  insurer or insurance agent constitute corrupt practices, improper influences or
				  inducements and are declared to be false, misleading, deceptive or unfair:
(1) 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 subsection
				  does not prohibit assisting a service member by providing insurer or premium
				  information necessary to complete any allotment form;
(2) 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:
(A) 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. Section
				  4301 et seq. and the regulations promulgated
				  thereunder; and
(B) permits the
				  service member to make deposits and withdrawals unrelated to the payment or
				  processing of insurance premiums;
(3) 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 subsection (a)(2) of this section;
(4) 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;
(5) 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;
(6) 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;
(7) 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;
				  or
(8) 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.