Prohibited practices

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It shall be unlawful and a violation of this subchapter for any person to sell, market, promote, advertise, or otherwise distribute any card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from health care providers in health-related purchases if:

  1. (1) The card or other purchasing mechanism or device does not expressly provide in bold and prominent type that the discounts are not insurance;

  2. (2) The card or other purchasing mechanism or device does not expressly provide in bold and prominent type on the card or in a statement attached to the card that the consumer has the right to cancel his or her registration within thirty (30) days from the effective date of the card or other purchasing mechanism or device;

  3. (3) The discounts are not specifically authorized by an individual and separate contract with each health care provider listed in conjunction with the card or other purchasing mechanism or device;

  4. (4) The discounts or access to discounts offered or the range of discounts or access to the range of discounts offered are, regardless of the literal wording used:

    1. (A) Misleading;

    2. (B) Deceptive; or

    3. (C) Fraudulent;

  5. (5) The card or any advertisements for the card in any form include words or phrases that are commonly associated with the business of insurance, such as “health plan”, “ preexisting condition”, or “coverage”, in a way that could have a tendency to deceive the public into believing that the cards are a form of insurance;

  6. (6) The contract for the card or other purchasing mechanism or device, or any other document that is provided to the consumer at the time the card or other purchasing mechanism or device is received, does not contain:

    1. (A) Information in bold and prominent type that a consumer has the right to cancel his or her registration within thirty (30) days from the effective date of the card or other purchasing mechanism or device; and

    2. (B) Instructions on how a consumer may cancel his or her registration;

  7. (7) Printed advertisements and other printed promotional materials concerning the card or other purchasing mechanism or device do not expressly provide in bold and prominent type that:

    1. (A) The discounts are not insurance; and

    2. (B) The card or other purchasing mechanism or device contains a thirty-day cancellation period; and

  8. (8) Electronic advertisements and other electronic promotions concerning the card or other purchasing mechanism or device, including, but not limited to, radio, television, the Internet, and telephone solicitations, do not expressly state in a prominent manner that:

    1. (A) The discounts are not insurance; and

    2. (B) A consumer has the right to cancel the registration within a thirty-day period under § 4-106-205.

    1. It is found and determined by the General Assembly that:


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