Louisiana Administrative Code
Title 37 - INSURANCE Part
Part XIII - Regulations
Chapter 89 - Regulation 70-Replacement of Life Insurance and Annuities
Subchapter A - General Provisions
Section XIII-8917 - Violations and Penalties

Universal Citation: LA Admin Code XIII-8917

Current through Register Vol. 50, No. 9, September 20, 2024

A. Any failure to comply with this regulation shall be considered a violation of R.S. 22:1964. Examples of violations include:

1. any deceptive or misleading information set forth in sales material; or

2. failing to ask the applicant in completing the application the pertinent questions regarding the possibility of financing or replacement; or

3. the intentional incorrect recording of an answer; or

4. advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer; or

5. advising a policy or contract owner to write directly to the company in such a way as to attempt to obscure the identity of the replacing producer or company;

6. the company's failure to provide the applicant a hard copy of the required replacement notice within two business days following the submission of a case conducted by electronic means. All such provisions must occur no later than five business days from the date of applicant's signing the application.

B. Policy and contract owners have the right to replace existing life insurance policies or annuity contracts after indicating in or as a part of applications for new coverage that replacement is not their intention; however, patterns of such action by policy or contract owners of the same producer shall be deemed prima facie evidence of the producer's knowledge that replacement was intended in connection with the identified transactions, and these patterns of action shall be deemed prima facie evidence of the producer's intent to violate this regulation.

C. Where it is determined that the requirements of this regulation have not been met, the replacing insurer shall provide to the policy owner either an in force illustration, if available, or a policy summary for the replacement policy, or available disclosure document for the replacement contract and the appropriate notice regarding replacements in Appendix A or C.

D. Violations of this regulation shall subject the violators to penalties as provided by R.S. 22:1969, 1970, and any other applicable provisions of law.

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:11 and R.S. 22:910.

Disclaimer: These regulations may not be the most recent version. Louisiana 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.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.