054.01.112-7. Sales Practices
AR ADC 054.01.112-7Arkansas Administrative CodeEffective: December 12, 2020
Effective: December 12, 2020
Ark. Admin. Code 054.01.112-7
054.01.112-7. Sales Practices
A. All persons offering Travel Insurance to residents of this state are subject to the Trade Practices Act, Ark. Code Ann. § 23-66-201, et seq. except as otherwise provided in this Section. In the event of a conflict between this Rule and other rules regarding the sale and marketing of Travel Insurance and Travel Protection Plans, the provisions of this Rule shall control.
(1) All documents provided to consumers prior to the purchase of Travel Insurance, including but not limited to sales materials, advertising materials, and marketing materials, shall be consistent with the Travel Insurance policy itself, including but not limited to, forms, endorsements, policies, rate filings, and certificates of insurance.
(3) [FN1] For Travel Insurance policies or certificates that contain pre-existing condition exclusions, information and an opportunity to learn more about the pre-existing condition exclusions shall be provided any time prior to the time of purchase, and in the coverage's Fulfillment Materials.
(3) The Fulfillment Materials and the information described in Section 4(B)(1)(a)-(d) shall be provided to a policyholder or certificate holder as soon as practicable, following the purchase of a Travel Protection Plan. Unless the insured has either started a covered trip or filed a claim under the Travel Insurance coverage, a policyholder or certificate holder may cancel a policy or certificate for a full refund of the Travel Protection Plan price from the date of purchase of a Travel Protection Plan until at least:
For the purposes of this section, “delivery” means handing Fulfillment Materials to the primary policyholder or primary certificate holder or sending Fulfillment Materials by postal mail or electronic means to the primary policyholder or primary certificate holder.
(5) Where Travel Insurance is marketed directly to a consumer through an insurer's website or by others through an Aggregator Site, it shall not be an unfair trade practice or other violation of law where an accurate summary or short description of coverage is provided on the web page, so long as the consumer has access to the full provisions of the policy through electronic means.
D. Opt out. No person offering, soliciting, or negotiating Travel Insurance or Travel Protection Plans on an individual or group basis may do so by using negative option or opt out, which would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic form, when the consumer purchases a trip.
Credits
Adopted Dec. 12, 2020.
So in original.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.01.112-7, AR ADC 054.01.112-7
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