Kentucky Statutes 367.828 – Health discount plan — Penalties
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(1) As used in this section, “health discount plan” means any card, program, device, or mechanism that is not insurance that purports to offer discounts or access to discounts from a health care provider without recourse to the health discount plan.
(2) No person shall sell, market, promote, advertise, or otherwise distribute a health discount plan unless:
(a) The health discount plan clearly states in bold and prominent type on all cards or other purchasing devices, promotional materials, and advertising that the discounts are not insurance;
(b) The discounts are specifically authorized by an individual and separate contract with each health care provider listed in conjunction with the health discount plan; and
(c) The discounts or the range of discounts advertised or offered by the plan are clearly and conspicuously disclosed to the consumer.
(3) The provisions of subsection (2) of this section do not apply to the following:
(a) A customer discount or membership card issued by a retailer for use in its own facility; or
(b) Any card, program, device, or mechanism that is not insurance and which is administered by a health insurer authorized to transact the business of insurance in this state.
(4) A violation of this section shall be deemed an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS § 367.170. All of the remedies, powers, and duties delegated to the Attorney General by KRS
367.190 to 367.300 and penalties pertaining to acts and practices declared unlawful under KRS § 367.170 shall be applied to acts and practices in violation of this section.
Effective: July 15, 2002
History: Created 2002 Ky. Acts ch. 105, sec. 29, effective July 15, 2002.
(2) No person shall sell, market, promote, advertise, or otherwise distribute a health discount plan unless:
Terms Used In Kentucky Statutes 367.828
- Attorney: means attorney-at-law. See Kentucky Statutes 446.010
- Contract: A legal written agreement that becomes binding when signed.
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(a) The health discount plan clearly states in bold and prominent type on all cards or other purchasing devices, promotional materials, and advertising that the discounts are not insurance;
(b) The discounts are specifically authorized by an individual and separate contract with each health care provider listed in conjunction with the health discount plan; and
(c) The discounts or the range of discounts advertised or offered by the plan are clearly and conspicuously disclosed to the consumer.
(3) The provisions of subsection (2) of this section do not apply to the following:
(a) A customer discount or membership card issued by a retailer for use in its own facility; or
(b) Any card, program, device, or mechanism that is not insurance and which is administered by a health insurer authorized to transact the business of insurance in this state.
(4) A violation of this section shall be deemed an unfair, false, misleading, or deceptive act or practice in the conduct of trade or commerce in violation of KRS § 367.170. All of the remedies, powers, and duties delegated to the Attorney General by KRS
367.190 to 367.300 and penalties pertaining to acts and practices declared unlawful under KRS § 367.170 shall be applied to acts and practices in violation of this section.
Effective: July 15, 2002
History: Created 2002 Ky. Acts ch. 105, sec. 29, effective July 15, 2002.