SECTIONS 10870-10873 - California Statutes

INSURANCE CODE

SECTION 10870-10873

10870. The board shall establish marketing standards to be used by
participating carriers.

10871. Any marketing, advertisement, or educational material for
health benefit plans or ancillary benefit plans sold through the
purchasing alliance shall be approved by the board prior to its use.

10872. This article shall not be construed to prohibit or to compel
the purchasing alliance or a participating carrier from using the
services of an agent or broker.

10873. (a) A participating carrier, agent, broker, contractor, or
producer of a participating carrier, or independent insurance agent,
broker, contractor, or producer may not engage, directly or
indirectly, in an activity or marketing practice that would encourage
small employers or eligible enrollees to do any of the following:
(1) Refrain from enrolling in a health benefit plan offered
through the purchasing alliance because of their health status,
claims experience, industry, occupation, or geographic location
within the service region.
(2) Seek coverage from other participating carriers because of
their health status, claim experience, industry, occupation, or
geographic location within the service region.
(3) Enroll or fail to enroll in the purchasing alliance because of
their health status, claims experience, industry, occupation, or
geographic location within the service region.
(b) In the event that an agent, broker, contractor, carrier, or
producer of a participating carrier fails to abide by these
provisions, they shall be subject to the penalties and fines
described in Section 10718.