(a) An operator or marketer shall not:

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Terms Used In Tennessee Code 56-17-105

  • Marketer: means a person or entity that offers, sells, markets, advertises, or otherwise distributes a discount plan, including a private label entity that places its name on, and markets or distributes, a discount plan pursuant to a marketing agreement with a discount plan operator. See Tennessee Code 56-17-101
  • Member: means an individual who pays fees, dues, charges, or other consideration for the right to enroll to receive the purported benefits of a discount plan. See Tennessee Code 56-17-101
(1) Describe or characterize the discount plan as being insurance;
(2) Use or approve for use in its cards or distributed materials the terms “health plan,” “coverage,” “copay,” “copayments,” “deductible,” “preexisting conditions,” “guaranteed issue,” “premium,” “PPO,” “preferred provider organization,” or other terms in a manner that could reasonably mislead an individual into believing that the discount plan is health insurance;
(3) Make misleading, deceptive, or fraudulent representations regarding the discount or range of discounts offered by the discount plan; or
(4) Pay pharmacies, dentists, or vision care providers fees for healthcare services or collect or accept money from a member to pay a pharmacy, dentist, or vision care provider for healthcare services provided under the discount plan, unless the operator or marketer has an active certificate of authority to act as a third-party administrator.
(b) An operator shall approve in writing, prior to the marketer’s use, all cards and distributed materials used by marketers to offer, sell, market, advertise, or otherwise distribute the discount plan.
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