1. (a) An issuer, directly or through its producers, shall:

   1. (1) Establish marketing procedures to assure that any comparison of policies by its agents or other producers will be fair and accurate;
   2. (2) Establish marketing procedures to assure excessive insurance is not sold or issued;
   3. (3) Display prominently by type, stamp, or other appropriate means on the first page of the policy the following: "Notice to buyer: This policy may not cover all of your medical expenses.";

   4. (4) Inquire and otherwise make every reasonable effort to identify:

      1. (A) Whether a prospective applicant or enrollee for Medicare supplement insurance already has accident and health insurance; and
      2. (B) The types and amounts of any such insurance; and
   5. (5) Establish auditable procedures for verifying compliance with this subsection.

2. (b) In addition to the practices prohibited in Arkansas Code §§ 23-66-201 – 23-66-214 and § 23-66-301 et seq., the following acts and practices are prohibited:

   1. (1) Twisting. Knowingly making any misleading representation or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing or tending to induce any person to:

      1. (A) Lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy; or
      2. (B) Take out a policy of insurance with another insurer;
   2. (2) High-pressure tactics. Employing any method of marketing having the effect of or tending to induce the purchase of insurance through force, fright, threat, whether explicit or implied, or undue pressure to purchase or recommend the purchase of insurance; and

   3. (3) Cold-lead advertising. Making use directly or indirectly of any method of marketing that fails to disclose in a conspicuous manner that:

      1. (A) A purpose of the method of marketing is solicitation of insurance; and
      2. (B) Contact will be made by an insurance agent or producer or insurance company.
3. (c) The terms "Medicare supplement", "Medigap", "Medicare wrap-around”, and words of similar import shall not be used unless the policy is issued in compliance with this part.

Codification Notes: Arkansas Code § 23-66-214 was repealed by Acts 2017, No. 283, § 13.