(a) Where
a replacement is involved in the transaction, the replacing insurer shall:
(1) Verify that the required forms are
received and are in compliance with sections
38a-435-1 to
38a-435-8, inclusive, of the
Regulations of Connecticut State Agencies;
(2) Notify any existing insurer that may be
affected by the proposed replacement not later than five (5) business days
after receiving a completed application indicating replacement or when the
replacement is identified if not indicated on the application. The replacing
insurer shall mail a copy of the available illustration or policy summary for
the proposed policy or available disclosure document for the proposed contract
to the existing insurer or applicant not later than five (5) business days
after receiving a request from an existing insurer;
(3) Be able to produce copies of the
notification regarding replacement required in section
38a-435-3(b) of
the Regulations of Connecticut State Agencies, indexed by producer, for at
least five (5) years from the date of the replacement application or until the
next regular examination by the insurance department of a company's state of
domicile, whichever is later; and
(4) Provide to the policy or contract owner
notice of the right to return the policy or contract not later than ten (10)
days after receiving the policy or contract and receive an unconditional full
refund of all premiums or considerations paid on it, including any policy fees
or charges or, in the case of a variable or market value adjustment policy or
contract, a payment of the cash surrender value provided under the policy or
contract plus the fees and other charges deducted from the gross premiums or
considerations or imposed under such policy or contract. Such notice may be
included in the notice described in Appendix A or C of sections
38a-435-1 to
38a-435-8, inclusive, of the
Regulations of Connecticut State Agencies.
(b) In transactions where the replacing
insurer and the existing insurer are the same or subsidiaries or affiliates
under common ownership or control, allow credit for the period of time that has
elapsed under the replaced policy's or contract's incontestability and suicide
period up to the face amount of the existing policy or contract. With regard to
financed purchases, the credit may be limited to the amount the face amount of
the existing policy is reduced by the use of existing policy values to fund the
new policy or contract.
(c) If an
insurer prohibits the use of sales material other than that approved by the
company, as an alternative to the requirements of section
38a-435-3(e) of
the Regulations of Connecticut State Agencies, the insurer may:
(1) Require with each application a statement
signed by the producer that:
(A) Represents
that the producer used only company-approved sales material; and
(B) States that copies of all sales material
were left with the applicant in accordance with section
38a-435-3(d) of
the Regulations of Connecticut State Agencies; and
(2) Not later than ten (10) days after the
issuance of the policy or contract:
(A) Notify
the applicant by sending a letter to the applicant from a person whose duties
are separate from the marketing area of the insurer, that the producer has
represented that copies of all sales material have been left with the applicant
in accordance with section
38a-435-3(d) of
the Regulations of Connecticut State Agencies;
(B) Provide the applicant with a toll free
number to contact company personnel involved in the compliance function if such
is not the case; and
(C) Stress the
importance of retaining copies of the sales material for future reference;
and
(3) Produce a copy
of the letter set forth in subdivision (2)(A) of this subsection or other
verification in the policy file for at least five (5) years after the
termination or expiration of the policy or contract.
