Current through September 24, 2024
Each insurer that uses an agent in a life insurance sale
shall:
(1) Require with or as part of
each completed application for life insurance, a statement signed by the agent
as to whether or not he or she knows replacement is or may be involved in the
transaction.
(2) Where a
replacement is involved:
(a) Require from the
agent with the application for life insurance (i) a list of all of the
applicant's existing life insurance to be replaced and (ii) a copy of the
Replacement Notice provided the applicant pursuant to
§0780- 1-24-.05 (2) (a). Such existing life insurance
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) Send by certified or
registered mail to each existing insurer a written communication advising of
the replacement or proposed replacement and the identification information
obtained pursuant to §0780-1-24-.07(2)(a) and a Policy
Summary or ledger statement containing Policy Data on the proposed life
insurance as required by the Life Insurance Solicitation Rule. Cost indices and
equivalent level annual dividend figures need not be included in the Policy
Summary or ledger statement. This written communication shall be made within
five (5) 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.
(c)
Each existing insurer or such insurer's agent that undertakes a conservation
shall, within twenty days from the date the written communication plus the
materials required in §0780-1-24-.07(2)(a) and
§0780-1-24-.07(2)(b) is received by the existing insurer,
furnish the policy-owner with a Policy Summary for the existing life insurance
or ledger statement containing Policy Data on the existing policy. Such Policy
Summary or ledger statement shall be completed in accordance with the
provisions of Life Insurance Solicitation Rule, except that information
relating to premiums, cash values, death benefits and dividends, if any, shall
be computed from the current policy year of the existing life insurance. The
Policy Summary or ledger statement 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 the rule 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 or ledger statement, which shall be within five working
days of the receipt of the request.
(d) In the case of an agent who has been
licensed by the Tennessee Department of Commerce and Insurance for less than
one hundred twenty (120) days, immediately forward to the existing insurer by
certified or registered mail a copy of the notification required by
§0780-1-24-.05(4).
(3) The replacing insurer shall maintain
evidence of the ''Notice Regarding Replacement'', the Policy Summary and any
ledger statements used, and a replacement register, cross indexed, by replacing
agent and existing insurer to be replaced. The existing insurer shall maintain
evidence of Policy Summaries or ledger statements used in any conservation.
Evidence that all requirements were met shall be maintained for at least five
years or until the conclusion of the next succeeding regular examination by the
Insurance Department of its state of domicile, whichever is earlier.
(4) The 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 twenty days commencing from the
date of delivery of the policy.
Authority: T.C.A. §§
56-1-701,
56-2-301, 56-6-127 and
56-8-104.
