Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 30 - Health Insurance › Part 8 - Advertisements of Medicare Supplement Insurance (formerly OHIC Regulation 9) (230-RICR-20-30-8) › Section 230-RICR-20-30-8.7 - Advertisements of Benefits, Losses Covered or Premiums Payable

Current through June 14, 2024
A. Deceptive Words, Phrases or Illustrations
				  Prohibited
1. No advertisement shall omit
				  information or use words, phrases, statements, references or illustrations if
				  the omission of the information or use of such words, phrases, statements,
				  references or illustrations has the capacity, tendency or effect of misleading
				  or deceiving purchasers or prospective purchasers as to the nature or extent of
				  any policy benefit payable, loss covered or premium payable. The fact that the
				  policy offered is made available to a prospective insured for inspection prior
				  to consummation of the sale or an offer is made to refund the premium if the
				  purchaser is not satisfied, does not remedy misleading statements.
2. No advertisement shall contain or use
				  words or phrases such as "all," "full," "complete," "comprehensive,"
				  "unlimited," "up to," "as high as," "this policy will help fill some of the
				  gaps that Medicare and your present insurance leave out," "this policy pays all
				  that Medicare doesn't" or similar words and phrases, in a manner which
				  exaggerates any benefit beyond the terms of the policy.
3. An advertisement that also is an
				  invitation to join an association, trust or discretionary group shall solicit
				  insurance coverage on a separate and distinct application that requires
				  separate signatures for each application. The separate and distinct application
				  required for an advertisement which is also an invitation to join an
				  association, trust or discretionary group need not be on a separate document or
				  contained in a separate mailing. The insurance program shall be presented so as
				  not to mislead or deceive the prospective members that they are purchasing
				  insurance as well as applying for membership, if that is the case.
4. An advertisement shall not contain
				  descriptions of policy limitations, exceptions or reductions, worded in a
				  positive manner to imply that it is a benefit, such as describing a waiting
				  period as a "benefit builder" or stating "even preexisting conditions are
				  covered after six (6) months." Words and phrases used in an advertisement to
				  describe the policy limitations, exceptions and reductions shall fairly and
				  accurately describe the negative features of the limitations, exceptions and
				  reductions of the policy offered.
5. An advertisement of Medicare supplement
				  insurance sold by direct response shall not state or imply that "because no
				  insurance agent will call and no commissions will be paid to 'agents'" that it
				  is a "low cost plan" or use other similar words or phrases because the cost of
				  advertising and servicing the policies is a substantial cost in marketing by
				  direct response.