Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-30 - Trade practices › MILITARY SALES PRACTICES › Section 284-30-872 - Practices declared to be unfair or deceptive regardless of where they occur

Current through Register Vol. 24-14, July 15, 2024
(1) The following
				acts or practices by an insurer or insurance producer are found by the
				commissioner and declared to be false, misleading, unfair or deceptive methods
				of competition or unfair or deceptive or acts or practices in the conduct of
				the business of insurance or improper influences or inducements regardless of
				the location where they occur:
(a)
				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. For example, the using or assisting in the use of a service member's
				"MyPay" account or other similar internet or electronic medium to pay for life
				insurance is prohibited. For purposes of these military sales practices rules,
				assisting a service member by providing insurer or premium information
				necessary to complete any allotment form is not an unfair, deceptive, or
				prohibited practice.
(b) 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:
(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. §
												4301  et seq. and regulations promulgated
				thereunder; and
(ii) Permits the
				service member to make deposits and withdrawals unrelated to the payment or
				processing of insurance premiums.
(c) 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.
(d) 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.
(e) 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 their
				family members.
(f) 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.
(g) 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.
(h) 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 in order to purchase life insurance.