Wyoming Administrative Code
Agency 044 - Insurance Dept
Sub-Agency 0002 - General Agency, Board or Commission Rules
Chapter 12 - REGULATION GOVERNING REPLACEMENT OF LIFE INSURANCE POLICIES AND ANNUITIES
Section 12-8 - Duties of Insurers to Direct Response Sales

Universal Citation: WY Code of Rules 12-8

Current through September 21, 2024

Each insurer shall:

(a) Inform its personnel responsible for compliance with this Regulation of the requirements of this Regulation;

(b) Require with or as a part of each completed application for insurance a statement signed by the applicant as to whether such proposed insurance will replace existing insurance;

(c) Where a replacement is proposed by an insurer in the solicitation of a direct-response sale or it is known by the insurer on the date of application that a replacement will occur:

(i) Provide the applicant or prospective applicant with or as part of the

application the "Replacement Notice" (Exhibit A), or other substantially similar form approved by the commissioner, with the request that the applicant properly complete, sign and return a copy of the Notice with the application. In these instances the insurer may delete the references to the producer, including the producer's signature, and references not applicable to the product being sold or replaced, without having to obtain approval of the form from the commissioner. The "Replacement Notice" shall include any applicable surrender charges of the new policy being replaced, any sales charges applicable to the policy being purchased, and any surrender periods and/or charges applicable to the new policy being purchased.

(ii) Send to the existing insurer at its home office within three (3) working days of the date the Notice is received, a copy of the Notice advising of the replacement or proposed replacement of existing insurance. Forwarding of the Notice is not required if the replacing insurer and existing insurer are one and the same in name and direct management control;

(iii) Maintain copies of the Notice, all written communications with respect to replacement, and a replacement register, cross-indexed by existing insurer to be replaced, for at least three (3) years or until the conclusion of the next regular examination by the Insurance Department of its state of domicile, whichever is later;

(iv) Provide the applicant with a right to an unconditional refund of all premiums paid, which right may be exercised within a thirty (30) day period of delivery of the policy or contract.

(d) Where no replacement is proposed by an insurer in the solicitation of a direct-response sale and a Replacement Notice was not included with or as part of the application and returned to the insurer, but it is indicated on the application that a replacement might occur and the insurer plans to issue a policy:

(i) Suspend the application process for no longer than ten (10) days;

(ii) Provide the applicant with the Replacement Notice within three (3) days after receipt of the application;

(iii) Request that the applicant properly complete, sign and return a copy of the Notice within five (5) days; and

(iv) Continue the process as outlined in Sections 8(c)(ii) through 8(c)(iv). However, the insurer may continue the application process after ten (10) days from receipt of application even if a copy of the Notice has not been received.

Disclaimer: These regulations may not be the most recent version. Wyoming 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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