Section 1361 Of Article 4. Solicitation And Enrollment From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 4.
1361
. (a) Except as provided in subdivision (b), no plan shall
publish or distribute, or allow to be published or distributed on its
behalf, any advertisement not subject to Section 1352.1 unless (1) a
true copy thereof has first been filed with the director, at least
30 days prior to any such use, or any shorter period as the director
by rule or order may allow, and (2) the director by notice has not
found the advertisement, wholly or in part, to be untrue, misleading,
deceptive, or otherwise not in compliance with this chapter or the
rules thereunder, and specified the deficiencies, within the 30 days
or any shorter time as the director by rule or order may allow.
(b) Except as provided in subdivision (c), a licensed plan which
has been continuously licensed under this chapter for the preceding
18 months may publish or distribute or allow to be published or
distributed on its behalf an advertisement not subject to Section
1352.1 without having filed the same for the director's prior
approval, if the plan and the material comply with each of the
following conditions:
(1) The advertisement or a material provision thereof has not been
previously disapproved by the director by written notice to the plan
and the plan reasonably believes that the advertisement does not
violate any requirement of this chapter or the rules thereunder.
(2) The plan files a true copy of each new or materially revised
advertisement, used by it or by any person acting on behalf of the
plan, with the director not later than 10 business days after
publication or distribution of the advertisement or within such
additional period as the director may allow by rule or order.
(c) If the director finds that any advertisement of a plan has
materially failed to comply with this chapter or the rules
thereunder, the director may, by order, require the plan to publish
in the same or similar medium, an approved correction or retraction
of any untrue, misleading, or deceptive statement contained in the
advertising, and may prohibit the plan from publishing or
distributing, or allowing to be published or distributed on its
behalf the advertisement or any new materially revised advertisement
without first having filed a copy thereof with the director, 30 days
prior to the publication or distribution thereof, or any shorter
period specified in the order. An order issued under this subdivision
shall be effective for 12 months from its issuance, and may be
renewed by order if the advertisements submitted under this
subdivision indicate difficulties of voluntary compliance with the
applicable provisions of this chapter and the rules thereunder.
(d) A licensed plan or other person regulated under this chapter
may, within 30 days after receipt of any notice or order under this
section, file a written request for a hearing with the director.
(e) The director by rule or order may classify plans and
advertisements and exempt certain classes, wholly or in part, either
unconditionally or upon specified terms and conditions or for
specified periods, from the application of subdivisions (a) and (b).