NAIC: Unfair Trade Practices Act

Table of Contents

NAIC:  Unfair Trade Practices Act Purpose	1
Legislative History	1
States may impose some restrictions (1-13)	2
Insurance Activities Other than Sales	4
Financial Activities Other than Insurance	5
Nondiscrimination	5
Limitation	6
Definitions	6
United States v. Southeastern Underwriters Association	7
Developing Legislation	8
Gramm-Leach-Bliley Act Key Points	10
Is It Still Relevant?	12
Section 4 of the Unfair Trade Practices Act	16
A. Misrepresentation and False Advertising of Insurance Policies	16
B. False Information and Advertising Generally	16
C. Defamation	16
D. Boycott, Coercion, and Intimidation	17
E. False Statements and Entries	17
F. Stock Operations and Advisory Board Contacts	17
G. Unfair Discrimination	17
H. Rebates	18
New law	19
I. Prohibited Group Enrollments	22
J. Failure to Maintain Marketing and Performance Records	22
K. Failure to Maintain Complaint Handling Procedures	22
L. Misrepresentations in Insurance Applications	23
M. Unfair Financial Planning Practices	23
N. Failure to File or Certify Information regarding the endorsement or sale of Long-Term Care Insurance	24
O. Failure to Provide Claims History	24
P. Violating any one of Sections	24
Barratry	25
Lowballing	25
Redlining	27
Blacklists	28
Section 5. Favored Agent or Insurer, Coercion of Debtor	34
Section 7. Defined and Undefined Practices	35
Section 8. Cease-and-Desist and Penalty Orders	35
Section 9. Judicial Review of Orders	36
Section 11. Penalty for Violation of Cease-and-Desist Orders	36
Section 12. Regulations	36
Unfair Travel Discrimination	37
Countries Divided by Risk: A, B, C, and D	40
Favored Agent or Insurer	42

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