Administrative Rule Review Report  #AR08-021

Legislative Service Office

11-March-08

AGENCY: Insurance Department.

DATE SUBMITTED: February 27, 2008.

SUBJECT: Chapter 60, Military Sales Practices.

NATURE OF RULES:                     Legislative and procedural

STATUTORY AUTHORITY:         W.S. 26-2-110 and 26-9-201 through 26-9-232.

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO:  Apparently complete to date.

SUMMARY OF RULES:                   The rules set forth standards for sales and promotion of life insurance and annuity policies to members of the U.S. armed forces by declaring certain actions to be false, misleading, dishonest and untrustworthy. 

The rules declare the following acts done on a military installation to be false, misleading, dishonest and untrustworthy:  Door to door sales without appointments, solicitations where attendance at the presentation is not voluntary, solicitation during duty hours, solicitations in barracks, day rooms or personnel housing where the installation commander has prohibited solicitations or without the permission of the installation commander, failure to file specified forms, using armed forces personnel to aid in the solicitation of the products and making a solicitation part of a department of defense education or orientation program. 

The following acts are prohibited regardless of the location:  Use of allotments forms or similar devices to automatically deduct the price of a policy from a service members paycheck, use of third party banks for automatic payment of a premium, use of armed forces personnel to aid in solicitations, offering anything of value to armed forces personnel to procure their assistance in solicitations, paying certain service members for attendance at a solicitation, use of misleading titles (such as "veteran's benefits counselor") during solicitations, use of any legitimate veteran's benefits counseling agency to assist in solicitations and general misrepresentations regarding the value of a policy.

FINDINGS:     The rules appear to be within the scope of statutory authority and legislative intent. 

STAFF RECOMMENDATION:        That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.

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Lynda Cook

Staff Attorney

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Dan J. Pauli

Director

LGC/