Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 34.00 - The Replacement Of Life Insurance And Annuities
Section 34.06 - Duties of Insurers that Use Agents or Brokers
Universal Citation: 211 MA Code of Regs 211.34
Current through Register 1531, September 27, 2024
(1) Each insurer that uses an agent or broker in a life insurance or annuity sale shall:
(a) require with or as part or each completed
application for life insurance or annuity, a statement signed by the agent or
broker as to whether he or she knows replacement is or may be involved in the
transaction; and
(b) where a
replacement is involved:
1. require from the
agent or broker with the application for life insurance or annuity
a. a list of all of the applicant's existing
life insurance or annuity to be replaced. Such existing life insurance or
annuity shall be identified by name of insurer, insured and contract number. If
a number has not been assigned by the existing insurer, alternative
identification, such as an application or receipt number, shall be
listed.
b. a copy of the
replacement notice provided the applicant pursuant to
211 CMR
34.04(2)(a).
2. send to each existing insurer a
written communication advising of the replacement or proposed replacement and
the identification information obtained, pursuant to 211 CMR 34.06(1)(b)1. and
a policy summary, as defined in the Life Insurance Solicitation Regulation,
211 CMR 31.04. Cost
indices and equivalent level annual dividends figures need not be included in
the policy summary. This written communication shall be made within seven
working days of the date the application is received in the replacing insurer's
home or regional office, or the date the proposed policy or contract is issued,
whichever is sooner.
3. require
that each existing insurer, or such insurer's agent or broker that undertakes a
conservation shall, within 20 days from the date the written communication and
the materials required in 211 CMR 34.06(1)(b)1. and 2. is received by the
existing insurer, furnish the policy owner with a policy summary for the
existing life insurance. Such policy summary shall be completed in accordance
with the Life Insurance Solicitation Regulation,
211 CMR 31.04, and
shall provide information relating to premiums, cash values, death benefits and
dividends, If any, for at least the next five policy years. The policy summary
shall include the amount of any outstanding indebtedness, the sum of any
dividend accumulations or additions, and may include any other information that
is not in violation of any regulation or statute. Cost indices and equivalent
level annual dividend figures need not be included. The replacing insurer may
request the existing insurer to furnish it with a copy of the summaries, which
shall be furnished within five working days of the receipt of the
request.
(c) in the case
of a replacing insurer, maintain evidence of the notice regarding replacement,
the policy summary and any ledger statements used. The existing insurer shall
maintain evidence of policy summaries and any ledger statements used in any
conservation. Evidence that all requirements were met shall be maintained for
at least three years or until the conclusion of the next succeeding regular
examination by the insurance department of its state of domicile, whichever is
earlier.
(d) in the case of a
replacing insurer, shall provide in its policy or in a separate written notice
which is delivered with the policy that the applicant has a right to an
unconditional refund of all premiums paid, which right may be exercised within
a period of 20 days commencing from the date of delivery of the
policy.
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