New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter III - Policy and Certificate Provisions
Subchapter A - Life, Accident and Health Insurance
Part 51 - Replacement of Life Insurance Policies and Annuity Contracts
Section 51.2 - Definitions

Universal Citation: 11 NY Comp Codes Rules and Regs ยง 51.2

Current through Register Vol. 46, No. 39, September 25, 2024

In this Part:

(a) Replacement of a life insurance policy or an annuity contract means, except as exempted in Section 51.3 of this Part, that new life insurance or new annuities are to be purchased and delivered or issued for delivery in New York and it is known to the department licensee that, as part of the transaction, existing life insurance policies or annuity contracts have been or are likely to be:

(1) lapsed, surrendered, partially surrendered, forfeited, assigned to the insurer replacing the life insurance policy or annuity contract, or otherwise terminated;

(2) changed or modified into paid-up insurance; continued as extended term insurance or under another form of nonforfeiture benefit; or otherwise reduced in value by the use of nonforfeiture benefits, dividend accumulations, dividend cash values or other cash values;

(3) changed or modified so as to effect a reduction either in the amount of the existing life insurance or annuity benefit or in the period of time the existing life insurance or annuity benefit will continue in force;

(4) reissued with a reduction in amount such that any cash values are released, including all transactions wherein an amount of dividend accumulations or paid-up additions is to be released on one or more of the existing policies;

(5) assigned as collateral for a loan or made subject to borrowing or withdrawal of any portion of the loan value, including all transactions wherein any amount of dividend accumulations or paid-up additions is to be borrowed or withdrawn on one or more existing policies; or

(6) continued with a stoppage of premium payments or reduction in the amount of premium paid.

(b) Sales material means any sales illustration prepared in accordance with Insurance Law section 3209 and any other policy or contract information used in the presentation to the applicant.

(c) Policy or contractshall include a certificate issued under a group policy or group contract.

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