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S.F. No. 2765 - Automobile Insurance Unethical Claims Practices Provisions Modification
Author: Senator Dan Sparks
Prepared by: Darlene Sliwa, Senate Research (651/296-1890)
Date: March 2, 2008


Section 1, subdivision 6, paragraph (a), prohibits a licensed health care provider from initiating direct contact with a person who has suffered an injury out of the maintenance or use of an automobile, for the purpose of influencing that person to receive treatment or to purchase an item. Prohibited contact includes that which is initiated by the licensee on behalf of an employee, independent contractor, agent, or third party.

Paragraph (b) provides that the subdivision does not prohibit licensees from mailing advertisements so long as the word "advertisement" appears clearly and conspicuously at the beginning of the material; the name of the licensee appears clearly and conspicuously; the licensee is clearly identified as a licensed health care provider; and the licensee does not initiate direct contract after the materials are sent.

Paragraph (c) provides that the subdivision does not apply to advertising that does not involve direct contact with specific prospective patients, general marketing practices, contact with friends and relatives, and statements in a social setting.

Paragraph (d) provides that a violation of this subdivision is grounds for the licensing authority to take disciplinary action against the licensee, including revocation.

DS/syl

cc: Chris Stang




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