Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 26 - Trade Practices
Article 8 - Life Insurance Policy and Annuity Contract Replacements
3 AAC 26.800 - Duties of an insurer that uses an insurance producer

Universal Citation: 3 AK Admin Code 26.800

Current through February 24, 2025

An insurer shall

(1) maintain a system of supervision and control designed to ensure compliance with the requirements of 3 AAC 26.790 - 3 AAC 26.819 that at a minimum includes

(A) informing the insurer's insurance producers of the requirements of 3 AAC 26.790 - 3 AAC 26.819 and incorporating the requirements of 3 AAC 26.790 - 3 AAC 26.819 into all relevant insurance producer training manuals prepared by the insurer;

(B) providing each of the insurer's insurance producers with a written statement of the insurer's position with respect to the acceptability of replacements and providing guidance to its insurance producers relative to the appropriateness of replacements;

(C) implementing a system to review the appropriateness of each replacement that the insurance producer does not indicate is in accordance with the insurer's position in (B) of this paragraph;

(D) implementing procedures to confirm that the requirements of 3 AAC 26.790 - 3 AAC 26.819 are met;

(E) implementing procedures to detect transactions that are replacements but are not reported as replacements by the applicant or insurance producer; those procedures may include
(i) systematic customer surveys;

(ii) interviews;

(iii) confirmation letters; and

(iv) programs of internal monitoring;

(2) have the capacity to monitor each of its insurance producer's life insurance policy and annuity contract replacements and, upon request, provide to the director a report for each insurance producer showing the number of

(A) life insurance policy replacements and financed purchases as a percentage of the insurance producer's total annual life insurance sales;

(B) lapses of life insurance policies sold by the insurance producer as a percentage of the insurance producer's total annual sales of life insurance policies;

(C) annuity contract replacements as a percentage of the insurance producer's total annual sales of annuity contracts;

(D) unreported replacements by the existing insurer detected by the insurer's monitoring system under (1)(E) of this section; and

(E) replacements indexed by the replacing insurance producer and existing insurer;

(3) require with or as part of each application for a life insurance policy or an annuity contract a signed statement by both the applicant and the insurance producer indicating whether the applicant has an existing life insurance policy or annuity contract;

(4) require with each application for a life insurance policy or an annuity contract that indicates the applicant has an existing life insurance policy or annuity contract a completed notice regarding replacements that conforms with Appendix A of 3 AAC 26.795;

(5) for an applicant with an existing life insurance policy or annuity contract, retain for at least five years after termination or expiration of a proposed life insurance policy or annuity contract copies of

(A) any sales material required under 3 AAC 26.795;

(B) the basic illustration and any supplemental illustrations related to the specific policy or contract that is purchased; and

(C) the insurance producer's and applicant's signed statements with respect to financing and replacement;

(6) assure that the sales material and illustrations required under 3 AAC 26.795 meet the requirements of 3 AAC 26.790 - 3 AAC 26.819 and are complete and accurate for the proposed life insurance policy or annuity contract;

(7) if an application does not meet the requirements of 3 AAC 26.790 - 3 AAC 26.819,

(A) notify the insurance producer and the applicant that the application does not meet the requirements; and

(B) modify the application to meet the requirements; and

(8) maintain records in a manner that accurately reproduces the actual document.

In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.36.150 as AS 21.36.900. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 26.800, so that the citation to former AS 21.36.150 now refers to the renumbered statute, AS 21.36.900.

Authority:AS 21.06.090

AS 21.36.020

AS 21.36.030

AS 21.36.040

AS 21.36.050

AS 21.36.900

Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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