Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-133 - LIFE INSURANCE AND ANNUITIES REPLACEMENT REGULATION › Section 482-1-133-.04 - Duties Of Producers

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A
			 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
			 producer as to whether the applicant owns existing, in-force policies or
			 contracts on the same insured or annuitant. If the answer is "no," the
			 producer's duties with respect to replacement are complete.
(2) If the applicant answered "yes" to the
			 question regarding existing coverage referred to in Rule
			 482-1-133-.04(1),
			 the producer shall present and read to the applicant, not later than at the
			 time of taking the application, a notice regarding replacements in the form as
			 described in Appendix A or other substantially similar form approved by the
			 commissioner. However, no approval shall be required when amendments to the
			 notice are limited to the omission of references not applicable to the product
			 being sold or replaced. The notice shall be signed by both the applicant and
			 the producer attesting that the notice has been read aloud by the producer 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) and left with the applicant. If
			 the notice is presented electronically, the insurer shall mail the applicant a
			 copy of the notice within three (3) business days after the application is
			 submitted to the insurer.
(3) The
			 notice shall list all life insurance policies or annuities proposed to be
			 replaced, properly identified by name of insurer, the insured or annuitant, and
			 policy or contract number if available; and shall 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. If a policy or
			 contract number has not been issued by the existing insurer, alternative
			 identification, such as an application or receipt number, shall be
			 listed.
(4) In connection with a
			 replacement transaction the producer shall leave with the applicant at the time
			 an application for a new policy or contract is completed the original or a copy
			 of all sales material. With respect to electronically presented sales material,
			 it shall be provided to the policy or contract owner in printed form no later
			 than at the time of policy or contract delivery.
(5) Except as provided in Rule
			 482-1-133-.06(3),
			 in connection with a replacement transaction the producer shall submit to the
			 insurer to which an application for a policy or contract is presented, a copy
			 of each document required by this section, a statement identifying any
			 preprinted or electronically presented company approved sales materials used,
			 and copies of any individualized sales materials, including any illustrations
			 related to the specific policy or contract purchased.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §§
										27-2-17.