Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-24 - REPLACEMENT OF LIFE INSURANCE POLICIES › Rule 120-2-24-.08 - Duties of Replacing Insurers That Are Direct Response Insurers

Current through Rules and Regulations filed through June 27, 2024
Each replacing insurer that is a direct response insurer
				  shall:
(1) Provide to applicants or
				prospective applicants with or as a part of the application a Replacement
				Notice as described in Exhibit A or other substantially similar form approved
				by the Commissioner.
Such Replacement Notice shall not be required to contain
				  paragraph three, the signature blanks and related information, nor the "Items
				  to Consider" on the reverse side of the Replacement Notice, where the original
				  solicitation contains the application for insurance and it appears in a
				  newspaper, magazine, or similar type of publication.
(2) Request from the applicant with or as a
				part of the application, a list of all existing life insurance to be replaced.
				Such existing life insurance shall be identified by name of insurer, insured
				and policy number.
(3) If the
				applicant furnishes the name of existing insurers, send to the existing insurer
				a copy of the Replacement Notice and written communication advising of the
				replacement or proposed replacement, including the name of the replacing
				insurer, the insured, and the identification information with respect to the
				existing life insurance to be replaced obtained pursuant to subsection (2)
				above. The Replacement Notice and written communication shall be mailed within
				three (3) working days of the date the application is received in the replacing
				insurer's home or regional office, or the date the proposed policy is issued,
				whichever is sooner.
Exhibit A.
Replacement Notice
EXHIBIT A
REPLACEMENT NOTICE
(Name, Address and Telephone Number of Company)
REPLACING YOUR LIFE INSURANCE POLICY?
Are you thinking about buying a new policy and discontinuing
				  or changing an existing policy? If you are, your decision could be a good one -
				  or a mistake. You will not know for sure unless you make a careful comparison
				  of your existing policy and the proposed policy.
Make sure you understand the facts. Georgia law gives you the
				  right to obtain a policy summary statement from your existing insurer at any
				  time. Ask the company or agent that sold you your existing policy to give you
				  information about it.
The reverse side contains a check list of some of the items
				  you should consider in making your decision. TAKE TIME TO READ IT.
Do not
let one agent or insurer prevent you
				  from obtaining information from another agent or insurer which may be to your
				  advantage.
Hear both sides before you decide. This way you can be sure
				  you are making a decision that is in
your
best
				  interest.
[] If you wish a policy summary statement from your existing
				  insurer, or insurers, check this box.
We are required to notify your existing company that you may
				  be replacing their policy.
Click
				  here to view
ORIGINAL TO APPLICANT - COPY TO REPLACING INSURER - COPY TO
				  REPLACED INSURER
[The bracketed information below is provided for the insurer
				  and
is not
a part of the Replacement Notice.]
[Note to insurers: information concerning existing
				  coverage(s) can be required on this form, on the application, or on a separate
				  form at the company's discretion.]
[Direct response insurers may delete paragraph three, and the
				  signature blanks and related information, and the reverse side of this Exhibit
				  where the original solicitation contains the application for insurance and it
				  appears in a newspaper, magazine or similar type publication, and still be in
				  compliance with this Regulation.]
ITEMS TO CONSIDER
1. If the policy coverages are basically similar, premiums
				  for a new policy may be higher because rates increase as your age
				  increases.
2. Cash values and dividends, if any, may grow slower under a
				  new policy initially because of the initial costs of issuing a policy.
3. Your present insurance company may be able to make a
				  change on terms which may be more favorable than if you replace existing
				  insurance with new insurance.
4. If you borrow against an existing policy to pay premiums
				  on a new policy, death benefits payable under your existing policy will be
				  reduced by the amount of any unpaid loan, including unpaid interest.
5. Current interest rates are not guaranteed. Guaranteed
				  interest rates are usually considerably lower than current rates. What rates
				  are guaranteed?
6. Are premiums guaranteed or subject to change - up or
				  down?
7. Participating policies pay dividends that may materially
				  reduce the cost of insurance over the life of the contract. Dividends, however,
				  are not guaranteed.
8. CAUTION, you are urged not to take action to terminate,
				  assign, or alter your existing life insurance coverage until after you have
				  been issued the new policy, examined it and have found it to be acceptable to
				  you.
and
REMEMBER, you have ten (10) days following receipt of any
				  individual life insurance policy to examine its contents. If you are not
				  satisfied with it for
any
reason, you have the right to return
				  it to the insurer at its home or branch office or to the agent through whom it
				  was purchased, for a full refund of premium.
Ga. L. 1960, pp. 289,
				  305, 1972, pp. 1261, 1264.