Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 25 - LIFE AND ANNUITIES › Part 11 - Military Sales Practices (230-RICR-20-25-11) › Section 230-RICR-20-25-11.7 - Practices Declared False, Misleading, Deceptive or Unfair Regardless of Location

Current through June 14, 2024
A. 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:
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. §
													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 §
											11.7(A)(2)   of this
				  Part.
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.
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.