Current through Register Vol. 50, No. 9, September 20, 2024
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 this
regulation;
2. notify any other
existing insurer that may be affected by the proposed replacement within five
business days of receipt of a completed application indicating replacement or
when the replacement is identified if not indicated on the
application;
3. mail a copy of the
available illustration or policy summary for the proposed policy or available
disclosure document for the proposed contract within five business days of a
request from an existing insurer;
4. be able to produce copies of the
notification regarding replacement required in
§8907 B, indexed by producer, for at
least five years or until the next regular examination by the insurance
department of its state of domicile, whichever is later; and
5. provide to the policy or contract owner
notice of the right to return the policy or contract within 30 days of the
delivery of the contract and receive an unconditional full refund of all
premiums or considerations paid, 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 Appendix A or
C.
B. In transactions
where the replacing insurer and the existing insurer are the same or
subsidiaries or affiliates under common ownership or control, the insurer shall
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
§8907 D, 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
§8907 C; and
2. within 10 days of the issuance of the
policy or contract:
a. notify the applicant by
letter or verbal communication by a person having duties 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
§8907 C;
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. be able to
produce a copy of the letter or other verification in the policy file for at
least five years after the termination or expiration of the policy or
contract.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
22:3 and
R.S.
22:644.1.
