Guam § 29105 - Disclosure Standards.

§ 29105. Disclosure Standards.

(a) In order to provide for full and fair disclosure in the sale of

Medicare supplement policies, no Medicare supplement policy or certificate

shall be delivered in Guam unless an outline of coverage is delivered to the

applicant at the time application is made.

(b) The Commissioner shall prescribe the format and content of the

outline of coverage required by subsection (a) of this section. For purposes

of this section, format means style, arrangements and overall appearance,

including such items as the size, color and prominence of type and

arrangement of text and captions. Such outline of coverage shall include:

(1) A description of the principal benefits and coverage provided

in the policy;

(2) A statement of the renewal provisions, including any

reservation by the issuer of a right to change premiums; and disclosure

of the existence of any automatic renewal premium increases based on

the policyholder=s age.

(3) A statement that the outline of coverage is a summary of the

policy issued or applied for and that the policy should be consulted to

determine governing contractual provisions.

(c) The Commissioner may prescribe by regulation a standard form and

the contents of an informational brochure for persons eligible for Medicare,

which is intended to improve the buyer=s ability to select the most

appropriate coverage and improve the buyer=s understanding of Medicare.

(1) Except in the case of direct response insurance policies, the

commissioner may require by regulation that the informational brochure

be provided to any prospective insured eligible for Medicare

concurrently with delivery of the outline of coverage.

(2) With respect to direct response insurance policies, the

commissioner may require by regulation that the prescribed brochure be

provided upon request to any prospective insured eligible for Medicare,

but in no event later than the time of policy delivery.

(d) The Commissioner may adopt regulations for captions or notice

requirements determined to be in the public interest and designed to inform

prospective insured that particular insurance coverages are not Medicare

COL9222017

supplement coverages, for all accident and sickness insurance policies sold

to persons eligible for Medicare by reason of age, other than:

(1) Medicare supplement policies;

(2) Disability income policies;

(3) Basic, catastrophic or major medical expense policies; or

(4) Single premium, nonrenewable policies.

(e) The commissioner may adopt reasonable regulations to govern the

full and fair disclosure of the information in connection with the replacement

of accident and sickness policies, subscriber contracts or certificates by

persons eligible for Medicare.