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 51.5 - Duties of insurance agent and broker
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 51.5
Current through Register Vol. 46, No. 39, September 25, 2024
Each insurance agent and broker shall:
(a) obtain with or as part of each application a completed "Definition of Replacement" in a form prescribed by the superintendent and signed by the applicant and the agent or broker and leave a copy of such form with the applicant for the applicant's records;
(b) submit to the insurer along with each application a signed and completed "Definition of Replacement"; and
(c) where a replacement has occurred or is likely to occur:
(1) obtain with or as part
of each application a list of all existing life insurance policies or annuity
contracts proposed to be replaced;
(2) notify the insurer that issued the policy
or contract that is being replaced and the insurer replacing the life insurance
policy or annuity contract of the proposed replacement;
(3) submit to the insurer that issued the
policy or contract that is being replaced a list of all life insurance policies
or annuity contracts proposed to be replaced, as well as the policy or contract
number for such policies or contracts, together with the proper authorization
from the applicant, and request the information necessary to complete the
"Disclosure Statement" with respect to the life insurance policy or annuity
contract proposed to be replaced. In the event that the insurer that issued the
coverage that is being replaced fails to provide the information in the
prescribed time, the agent or broker replacing the life insurance policy or
annuity contract may use, and the insurer replacing the life insurance policy
or annuity contract shall review and may accept, good faith approximations
based on the information available;
(4) present to the applicant, not later than
at the time the applicant signs the application, the "IMPORTANT Notice
Regarding Replacement or Change of Life Insurance Policies or Annuity
Contracts" and leave a copy of such form with the applicant for the applicant's
records;
(5) have the applicant
acknowledge that the "IMPORTANT Notice Regarding Replacement or Change of Life
Insurance Policies or Annuity Contracts" has been received and read;
(6) submit with the application to the
insurer replacing the life insurance policy or annuity contract: a list of all
life insurance policies or annuity contracts proposed to be replaced; a copy of
the sales material, including the proposal used in the sale of the life
insurance policy or annuity contract; and proof of receipt by the applicant of
the "IMPORTANT Notice Regarding Replacement or Change of Life Insurance
Policies or Annuity Contracts"; and
(7) prior to the delivery of the life
insurance policy or annuity contract, submit to the insurer replacing the life
insurance policy or annuity contract an accurate and complete "Disclosure
Statement" signed by the agent or broker in the appropriate form prescribed in
Appendices 10A or 10B to this Part. The statement shall specify the primary
reasons for recommending the new life insurance policy or annuity contract and
why the existing life insurance policy or annuity contract cannot meet the
applicant's objectives.
Disclaimer: These regulations may not be the most recent version. New York 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.
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