Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 146d - MILITARY SALES PRACTICES › Section 146d.6 - Practices declared false, misleading, deceptive or unfair regardless of location

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				following acts or practices by an insurer or insurance producer constitute
				corrupt practices, improper influences or inducements and are deemed and
				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, including using or assisting in using
				a service member's "MyPay" account or other similar internet or electronic
				medium for this purpose. This paragraph 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 paragraph, a formal banking relationship is
				established when the depository institution does all of the following:
(i) 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.A. §§
												4301-4313)
				and the regulations promulgated thereunder.
(ii) Permits the service member to make
				deposits and withdrawals unrelated to the payment or processing of insurance
				premiums.
(3) Employing a
				device or method or entering into an 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 paragraph (2).
(4) Entering into an 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) Directly or
				indirectly using an active duty service member or a civilian, nonappropriated
				fund, or special government employee of the Department of Defense, as a
				representative or agent in an 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
				the personnel.
(6) Offering or
				giving anything of value, directly or indirectly, to an active duty service
				member or a civilian, nonappropriated fund, or special government employee of
				the Department of Defense to procure 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 whom the insurer or insurance
				producer knows, or in the exercise of ordinary care should have known, has a
				pay grade of E-4 or below for a service member's attendance to an event where
				an application for life insurance is solicited.
(8) Advising a service member with a pay
				grade of E-4 or below to change his income tax withholding or state of legal
				residence for the sole purpose of increasing disposable income to purchase life
				insurance.