Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 89 - APPROVAL OF LIFE, ACCIDENT AND HEALTH INSURANCE › Subchapter A - REQUIREMENTS FOR ALL POLICIES AND FORMS › PREPARATION OF FORMS › Section 89.12 - Application forms

Current through Register Vol. 54, No. 28, July 13, 2024
(a) When submitting a policy form to which a copy
					 of the application will be attached when the policy is issued, a copy of the
					 application shall be attached to the policy form. If the form of the application has
					 already been approved, the form number and date of approval shall be shown either on
					 the form or in the transmittal letter.
(b) If it is the practice of the insurer to attach
					 a reduced size reproduction of the application to a form when issued, the
					 application should be attached to each copy of the form submitted. The application
					 should be legibly reproduced in the size to be used in the contract.
(c) An application which includes a provision for
					 home office endorsements or corrections may not be approved for use unless it is
					 specifically stipulated therein that a change may not be made in the amount of
					 insurance, the age at issue, the plan of insurance or benefits applied for by the
					 endorsements or corrections. This subsection does not apply to group
					 applications.
(d) Applications shall
					 contain clear and direct questions by the insurer permitting answers by the
					 applicant only in the form of direct statements of known facts. Applications may not
					 contain questions or representations based on indefinite or ambiguous terms or which
					 are inconsistent with policy provisions and may not require the making of warranties
					 by the applicant.
(e) An insurer may
					 include questions as to demographic factors, including race and ethnicity, on an
					 application subject to all of the following:
(1)
					 The application clearly states that the disclosure of the data is
					 voluntary.
(2) Questions as to the data
					 include the following answer options verbatim:
(i)
					 Prefer Not to Answer.
(ii)
					 Other.
(3) At the time of
					 application or when the data is collected, the insurer provides to the insured a
					 written statement that contains the following information:
(i) The data will be maintained as
					 private.
(ii) The data may not be used
					 by the insurer for eligibility determinations, underwriting or rating
					 purposes.
(iii) The insurer may not deny
					 an application based on the applicant's refusal to answer the questions related to
					 demographic data on the application.
(4) At the time of application or when the data is
					 collected, the insurer provides a written explanation to the insured regarding all
					 of the following:
(i) Why the data is being
					 requested by the insurer.
(ii) How the
					 data will support efforts to provide equitable coverage.
(5) The insurer provides a written attestation to
					 the Department that the insurer's application, collection and use of data meets
					 Federal and State law regarding unfair discrimination, including all of the
					 following:
(i) The insured's data is maintained as
					 private.
(ii) The insured's data may not
					 be used by the insurer for eligibility determinations, underwriting or rating
					 purposes.
(iii) The insurer may not deny
					 an application based on the applicant's refusal to answer the questions related to
					 demographic data on the application.
(6) The insurer shall provide the written
					 attestation in paragraph (5) for each product by the following dates:
(i) June 20, 2024, for products in existence as of
					 the effective date of this regulation.
(ii) The date the product is filed.
(iii) The date that there is a material change to
					 the application or data collection process, even if not required to be
					 filed.