Advertising Prohibition Policy
26.1-38.1-16 "Prohibited advertisement of Insurance Guaranty Association Act in insurance sales -- Notice to policy owners" 1. No person, including an insurer, insurance producer, or affiliate of an insurer may make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement or statement, written or oral, which uses the existence of the insurance guaranty association of this state for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by chapter 26.1-38.1. Provided, however, that this section does not apply to the North Dakota life and health insurance guaranty association or any other entity that does not sell or solicit insurance. 2. Before January 1, 1990, the association shall prepare a summary document describing the general purposes and current limitations of the chapter and complying with subsection 3. This document should be submitted to the commissioner for approval. Sixty days after receiving approval, no insurer may deliver a policy or contract to a policy or contract owner unless the summary document is delivered to the policy or contract owner to or at the time of delivery of the policy or contract. The document should also be available upon request by a policy owner. The distribution, delivery, or contents or interpretation of this document does not mean that either the policy or contract or the owner thereof would be covered in the event of the impairment or insolvency of a member insurer. The document must be revised by the association as amendments to the chapter may require. Failure to receive this document does not give the policy owner, contract owner, certificate holder, or insured any greater rights than those stated in this chapter. 3. The document prepared under subsection 2 must contain a clear and conspicuous disclaimer on its face. The commissioner shall establish the form and content of the disclaimer. The disclaimer must: a. State the name and address of the life and health insurance guaranty association and insurance department; b. Prominently warn the policy owner or contract owner that the North Dakota life and health guaranty association may not cover the policy, or, if coverage is available, it will be subject to substantial limitations and exclusions and be conditioned on continued residence in this state; c. State the types of policies for which guaranty funds will provide coverage; d. State that the insurer and its insurance producers are prohibited by law from using the existence of the North Dakota life and health guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance; e. Emphasize that the policy owner or contract owner should not rely on coverage under the North Dakota life and health guaranty association when selecting an insurer; f. Explain rights available and procedures for filing a complaint to allege a violation of any provisions of this chapter; and g. Provide other information as directed by the commissioner, including sources for information about the financial condition of insurers provided the information is not proprietary and is subject to disclosure under the state's public records law. 4. A member insurer shall retain evidence of compliance with subsection 2 for so long as the policy or contract for which the notice is given remains in effect.