20-1241.03. Duties of insurance producers
A. An insurance producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the insurance producer as to whether the applicant has an existing policy or contract.
B. If the answer is " no" to the question under subsection A of this section regarding existing coverage, the insurance producer has no further replacement duties.
C. If the answer is " yes" to the question under subsection A of this section regarding existing coverage, the insurance producer shall present and read to the applicant, not later than the time of taking the application, a notice regarding replacements that is in a form that the director has approved or prescribed by rule.
D. The applicant and the insurance producer shall sign the notice required under subsection C of this section. The insurance producer shall leave the signed notice with the applicant. If the notice is presented electronically, the insurer shall mail the applicant a copy of the notice within three business days after the application is submitted to the insurer. In the notice the insurance producer and the applicant shall attest that the insurance producer either read the notice aloud or that the applicant did not wish the notice to be read aloud, in which case the producer need not have read the notice aloud.
E. The notice prescribed in subsection C of this section shall:
1. Identify each policy and contract proposed to be replaced by:
(a) Name of the insurer.
(b) Name of the insured or annuitant.
(c) Policy or contract number if available.
(d) Application or receipt number if the policy or contract number is not available.
2. Include a statement as to whether each policy or contract will be replaced or whether a policy will be used as a source of financing for the new policy or contract.
F. If the application for a new policy or contract is completed in any replacement transaction, the insurance producer shall give the applicant the original or a copy of all sales material at the time of the application for the new policy or contract. The insurance producer or insurer shall provide the applicant with a printed copy of any electronically presented sales material not later than at the time of policy or contract delivery.
G. Except as provided in section 20-1241.05, subsection G, in connection with any replacement transaction, an insurance producer shall submit to the insurer to which an application for a policy or contract is presented a copy of:
1. Each document required by this section.
2. A statement identifying any preprinted or electronically presented company approved sales materials used.
3. Any individualized sales materials, including any illustrations related to the specific policy or contract purchased.
Section: Previous 20-1231 20-1231.01 20-1232 20-1233 20-1241 20-1241.01 20-1241.02 20-1241.03 20-1241.04 20-1241.05 20-1241.06 20-1241.07 20-1241.08 20-1241.09 20-1242 NextLast modified: October 13, 2016