Current through Register Vol. 63, No. 9, September 1, 2024
(1) When a replacement is involved in the
transaction, the replacing insurer shall:
(a)
Verify that the required forms are received and are in compliance with OAR
836-080-0001 to
836-080-0043;
(b) 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, and 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;
(c) Be able to produce copies of the
notification regarding replacement required in OAR
836-080-0014(2),
indexed by insurance producer, for at least five years or until the next
regular examination by the insurance department of the insurer's state of
domicile, whichever is later; and
(d) Provide to the policyholder or contract
owner notice of the right to return the policy or contract within 30 days of
the delivery of the policy or contract and receive an unconditional full refund
of all premiums or considerations paid on it, 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. Notice required in
this subsection may be included in Appendix A or C to
this rule.
(2) In a
transaction in which the replacing insurer and the existing insurer are the
same or are subsidiaries or affiliates under common ownership or control, the
replacing 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 a
financed purchase 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.
(3) If an
insurer prohibits the use of sales material other than that approved by the
insurer, as an alternative to the requirements made of an insurer pursuant to
OAR 836-080-0014(5),
the insurer may:
(a) Require with each
application a statement signed by the insurance producer that:
(A) Represents that the insurance producer
used only insurer-approved sales material;
(B) States that copies of all sales material
were left with the applicant in accordance with OAR
836-080-0014(4);
and
(b) Within ten days
of the issuance of the policy or contract:
(A)
Notify the applicant by sending a letter or by verbal communication with the
applicant by a person whose duties are separate from the marketing area of the
insurer, that the insurance producer has represented that copies of all sales
material have been left with the applicant in accordance with OAR
836-080-0014(4);
(B) Provide the applicant with a toll-free
number to contact insurer personnel involved in the compliance function if the
insurer cannot give the applicant the notice required in paragraph (A) of this
subsection; and
(C) Stress the
importance of retaining copies of the sales material for future
reference.
(4) An insurer to whom section (3) of this
rule applies shall maintain the ability to produce from the policy file a copy
of the letter or other verification sent to an applicant under section (3) of
this rule for at least five years after the termination or expiration of the
policy or contract.
Appendices referenced are available from the
agency.
Stat. Auth.: ORS
731.244
Stats. Implemented: ORS
746.085 &
746.240
