Iowa Administrative Code › Agency 191 - Insurance Division › Life and Health Insurance › Chapter 36 - Accident and Health Insurance › Rule 191-36.8 - Requirements for Replacement

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Application forms shall include a question designed to elicit information as to
				whether the insurance to be issued is intended to replace any other accident
				and sickness insurance presently in force. A supplementary application or other
				form to be signed by the applicant containing such a question may be
				used.
(2) Upon determining that a
				sale will involve replacement, an insurer, other than a direct response
				insurer, or its agent shall furnish the applicant, prior to issuance or
				delivery of the policy, the notice described in 36.8(3). One copy of such
				notice shall be retained by the applicant and an additional copy signed by the
				applicant shall be retained by the insurer A direct response insurer shall
				deliver to the applicant upon issuance of the policy, the notice described in
				36.8(4). In no event, however, will such a notice be required in the
				solicitation of the following types of policies: accident only and single
				premium nonrenewable policies.
(3)
				The notice required by 36.8(2) for an insurer, other than a direct response
				insurer, shall provide, in substantially the following form:
NOTICE TO APPLICANT REGARDING REPLACEMENT OF ACCIDENT AND
				  SICKNESS INSURANCE
According to (your application) (information you have
				  furnished), you intend to lapse or otherwise terminate existing accident and
				  sickness insurance and replace it with a policy to be issued by (Company Name)
				  Insurance Company. For your own information and protection, you should be aware
				  of and seriously consider certain factors which may affect the insurance
				  protection available to you under the new policy.
a. Health conditions which you may presently
				have (preexisting conditions) may not be immediately or fully covered under the
				new policy. This could result in denial or delay of a claim for benefits under
				the new policy, whereas a similar claim might have been payable under your
				present policy.
b. You may wish to
				secure the advice of your present insurer or its agent regarding the proposed
				replacement of your present policy. This is not only your right, but it is also
				in your best interest to make sure you understand all the relevant factors
				involved in replacing your present coverage.
c. If, after due consideration, you still
				wish to terminate your present policy and replace it with new coverage, be
				certain to truthfully and completely answer all questions on the application
				concerning your medical-health history. Failure to include all material medical
				information on an application may provide a basis for the company to deny any
				future claims and to refund your premium as though your policy had never been
				in force. After the application has been completed and before you sign it,
				reread it carefully to be certain that all information has been properly
				recorded.
The above "Notice to Applicant" was delivered to me
				  on:
______________________________
(Date)
______________________________
(Applicant's Signature)