44-1525.

Unfair trade practices; enumerated.

Any of the following acts or practices, if committed in violation of section 44-1524, shall be an unfair trade practice in the business of insurance:

(1) Making, issuing, circulating, or causing to be made, issued, or circulated an estimate, illustration, circular, statement, sales presentation, omission, or comparison which:

(a) Misrepresents the benefits, advantages, conditions, or terms of a policy;

(b) Misrepresents the dividends or share of the surplus to be received on a policy;

(c) Makes a false or misleading statement relating to the dividends or share of surplus previously paid on a policy;

(d) Misleads or misrepresents the financial condition of an insurer or the legal reserve system upon which a life insurer operates;

(e) Uses a name or title of a policy or class of policies which misrepresents the true nature thereof;

(f) Misrepresents for the purpose of inducing or tending to induce the purchase, lapse, forfeiture, exchange, conversion, or surrender of a policy, including intentionally misquoting a premium rate;

(g) Misrepresents for the purpose of effecting a pledge or assignment of or effecting a loan against any policy; or

(h) Misrepresents a policy as being shares of stock;

(2) Making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, electronic mail, Internet advertisement or posting, or other publication, or in the form of a notice, circular, pamphlet, letter, electronic posting of any kind, poster, or communication over a radio or television station, or via the Internet or other electronic means, or in any other way, an advertisement, announcement, or statement containing an assertion, representation, or statement with respect to the business of insurance or with respect to an insurer in the conduct of the insurer's insurance business which is untrue, deceptive, or misleading;

(3) Making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of any oral or written statement or a pamphlet, circular, article, or other literature which is false or maliciously critical of, or derogatory to, the financial condition of an insurer and which is calculated to injure such insurer;

(4) Entering into an agreement to commit, or by a concerted action committing, an act of boycott, coercion, or intimidation resulting in, or tending to result in, unreasonable restraint or monopoly in the business of insurance;

(5)(a) Knowingly filing with a supervisory or other public official, or knowingly making, publishing, disseminating, circulating, or delivering to a person, or placing before the public, or knowingly causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to a person, or placed before the public, any false material statement of fact as to the financial condition of an insurer; or

(b) Knowingly making a false entry of a material fact in a book, report, or statement of an insurer or knowingly omitting to make a true entry of a material fact pertaining to the business of such insurer in a book, report, or statement of such insurer;

(6) Issuing or delivering or permitting an agent, officer, or employee to issue or deliver agency company stock or other capital stock, or benefit certificates or shares in any common-law corporation, or securities or a special or advisory board contract or other contract of any kind promising returns and profits as an inducement to insurance;

(7)(a) Making or permitting unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for a life insurance policy or annuity or in the dividends or other benefits payable thereon or in the terms and conditions of such policy or annuity;

(b) Making or permitting unfair discrimination between individuals of the same class involving essentially the same hazards in the amount of premium, policy fees, or rates charged for a sickness and accident insurance policy or in the benefits payable thereunder, in the terms or conditions of such policy, or in any other manner, except that this subdivision shall not limit the negotiation of preferred provider policies and contracts under sections 44-4101 to 44-4113;

(c) Making or permitting unfair discrimination between individuals or risks of the same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting the amount of insurance coverage on a property or casualty risk because of the geographic location of the risk unless:

(i) The refusal, cancellation, or limitation is for a business purpose which is not a pretext for unfair discrimination; or

(ii) The refusal, cancellation, or limitation is required by law, rule, or regulation;

(d) Making or permitting unfair discrimination between individuals or risks of the same class and of essentially the same hazards by refusing to issue, refusing to renew, canceling, or limiting the amount of insurance coverage on a residential property risk, or the personal property contained therein, because of the age of the residential property unless:

(i) The refusal, cancellation, or limitation is for a business purpose which is not a pretext for unfair discrimination; or

(ii) The refusal, cancellation, or limitation is required by law, rule, or regulation;

(e) Refusing to insure, refusing to continue to insure, or limiting the amount of coverage available to an individual solely because of the sex or marital status of the individual. This subdivision shall not prohibit an insurer from taking marital status into account for the purpose of defining an individual eligible for dependent benefits; or

(f) Terminating or modifying coverage or refusing to issue or refusing to renew any property or casualty insurance policy solely because the applicant or insured or an employee of the applicant or insured is mentally or physically impaired unless:

(i) The termination, modification, or refusal is for a business purpose which is not a pretext for unfair discrimination; or

(ii) The termination, modification, or refusal is required by law, rule, or regulation.

This subdivision (f) shall not apply to a sickness and accident insurance policy sold by a casualty insurer and shall not be interpreted to modify any other provision of law relating to the termination, modification, issuance, or renewal of any policy;

(8)(a) Except as otherwise expressly provided by law:

(i) Knowingly permitting or offering to make or making any life insurance policy, annuity, or sickness and accident insurance policy, or agreement relating to any such policy or annuity, other than as plainly expressed in the policy or annuity issued thereon, or paying, allowing, or giving, or offering to pay, allow, or give, directly or indirectly, as inducement to such policy or annuity, a rebate of premiums payable on the policy or annuity, or a special favor or advantage in the dividends or other benefits thereon, or valuable consideration or inducement not specified in the policy or annuity; or

(ii) Giving, selling, purchasing, or offering to give, sell, or purchase as inducement to such policy or annuity or in connection therewith any stocks, bonds, or other securities of an insurer or other corporation, association, partnership, or limited liability company, or any dividends or profits accrued thereon, or anything of value not specified in the policy or annuity.

(b) Nothing in subdivision (7) or (8)(a) of this section shall be construed as including within the definition of discrimination or rebates:

(i) In the case of a life insurance policy or annuity, paying bonuses to policyholders or otherwise abating premiums, in whole or in part, out of surplus accumulated from nonparticipating insurance if such bonuses or abatement of premiums are fair and equitable to policyholders and for the best interests of the insurer and its policyholders;

(ii) In the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expenses; or

(iii) Readjustment of the rate of premium for a group insurance policy based on the loss or expense thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year;

(9) Failing of an insurer to maintain a complete record of all complaints received since the date of its last examination conducted pursuant to the Insurers Examination Act. This record shall indicate the total number of complaints, classification by line of insurance, the nature of each complaint, the disposition of each complaint, and the processing time for each complaint. For purposes of this subdivision, complaint means any written communication primarily expressing a grievance;

(10) Making a false or fraudulent statement or representation on, or relative to, an application for a policy for the purpose of obtaining a fee, commission, money, or other benefit from an insurer, agent, broker, or individual person;

(11) Failing of an insurer, upon receipt of a written inquiry from the department, to respond to such inquiry or request additional reasonable time to respond within fifteen working days;

(12) Accepting applications for, or writing any policy of, insurance sold, negotiated, or solicited by an insurance producer or business entity not licensed or appointed as required by the Insurance Producers Licensing Act;

(13) Failing of a health insurance lead generator to maintain its books, records, documents, and other business records, including recordings, in such an order that data regarding complaints and marketing are accessible and retrievable for examination by the director. Data for at least the current calendar year and the two preceding calendar years shall be maintained; and

(14) Violating any provision of section 44-320, 44-348, 44-360, 44-361, 44-369, 44-393, 44-515 to 44-518, 44-522, 44-523, 44-7,101, 44-2132 to 44-2134, 44-3606, 44-4809, 44-4812, 44-4817, or 44-5266, the Privacy of Insurance Consumer Information Act, or the Unfair Discrimination Against Subjects of Abuse in Insurance Act.