Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 34.00 - The Replacement Of Life Insurance And Annuities › Section 34.06 - Duties of Insurers that Use Agents or Brokers

Current through Register 1525, July 5, 2024
(1) Each insurer that uses an agent or broker
			 in a life insurance or annuity sale shall:
(a) require with or as part or each completed
			 application for life insurance or annuity, a statement signed by the agent or
			 broker as to whether he or she knows replacement is or may be involved in the
			 transaction; and
(b) where a
			 replacement is involved:
1. require from the
			 agent or broker with the application for life insurance or annuity
a. a list of all of the applicant's existing
			 life insurance or annuity to be replaced. Such existing life insurance or
			 annuity 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. a copy of the
			 replacement notice provided the applicant pursuant to
			 211 CMR
			 34.04(2)(a).
2. send to each existing insurer a
			 written communication advising of the replacement or proposed replacement and
			 the identification information obtained, pursuant to 211 CMR 34.06(1)(b)1. and
			 a policy summary, as defined in the Life Insurance Solicitation Regulation,
			 211 CMR 31.04. Cost
			 indices and equivalent level annual dividends figures need not be included in
			 the policy summary. This written communication shall be made within seven
			 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.
3. require
			 that each existing insurer, or such insurer's agent or broker that undertakes a
			 conservation shall, within 20 days from the date the written communication and
			 the materials required in 211 CMR 34.06(1)(b)1. and 2. is received by the
			 existing insurer, furnish the policy owner with a policy summary for the
			 existing life insurance. Such policy summary shall be completed in accordance
			 with the Life Insurance Solicitation Regulation,
			 211 CMR 31.04, and
			 shall provide information relating to premiums, cash values, death benefits and
			 dividends, If any, for at least the next five policy years. The policy summary
			 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 any regulation 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, which
			 shall be furnished within five working days of the receipt of the
			 request.
(c) in the case
			 of a replacing insurer, maintain evidence of the notice regarding replacement,
			 the policy summary and any ledger statements used. The existing insurer shall
			 maintain evidence of policy summaries and any ledger statements used in any
			 conservation. Evidence that all requirements were met shall be maintained for
			 at least three years or until the conclusion of the next succeeding regular
			 examination by the insurance department of its state of domicile, whichever is
			 earlier.
(d) in the case of a
			 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 20 days commencing from the date of delivery of the
			 policy.