New York Codes, Rules and Regulations › Title 11 - INSURANCE › Appendices › Appendix 10C - DEPARTMENT OF FINANCIAL SERVICES OF THE STATE OF NEW YORK IMPORTANT NOTICE REGARDING REPLACEMENT OR CHANGE OF LIFE INSURANCE POLICIES OR ANNUITY CONTRACTS

Current through Register Vol. 46, No. 28, July 10, 2024
THIS NOTICE IS FOR YOUR BENEFIT AND REQUIRED BY 11 NYCRR
				PART 51 (INSURANCE REGULATION 60)
YOU ARE CONTEMPLATING THE PURCHASE OF A LIFE INSURANCE POLICY
				OR ANNUITY CONTRACT IN CONNECTION WITH THE SURRENDER, LAPSE OR CHANGE OF
				EXISTING LIFE INSURANCE POLICIES OR ANNUITY CONTRACTS. THE AGENT OR BROKER IS
				REQUIRED TO GIVE YOU THIS NOTICE. A SIGNED DISCLOSURE STATEMENT WILL ALSO BE
				PROVIDED TO YOU CONTAINING THE SUMMARY RESULT COMPARISON FOR THE NEW LIFE
				INSURANCE POLICY OR ANNUITY CONTRACT AND ANY LIFE INSURANCE POLICIES OR ANNUITY
				CONTRACTS TO BE CHANGED THAT SETS FORTH THE FACTS OF THE TRANSACTION AND ITS
				ADVANTAGES AND DISADVANTAGES TO YOU. YOUR DECISION COULD BE A GOOD ONE - OR A
				MISTAKE - SO MAKE SURE YOU UNDERSTAND THE FACTS. YOU SHOULD:
1. CAREFULLY STUDY THE DISCLOSURE STATEMENT, WHICH INCLUDES A
				SUMMARY RESULT COMPARISON, UNTIL YOU ARE SURE YOU UNDERSTAND FULLY THE EFFECT
				OF THE TRANSACTION.
THE DISCLOSURE STATEMENT IS REQUIRED TO BE PROVIDED
				TO YOU NO LATER THAN UPON DELIVERY OF THE POLICY OR CONTRACT.
2. ASK THE COMPANY, AGENT OR BROKER FROM WHOM YOU BOUGHT YOUR
				EXISTING LIFE INSURANCE POLICIES OR ANNUITY CONTRACTS TO REVIEW WITH YOU THE
				TRANSACTION. YOU MAY BE ABLE TO EFFECT THE CHANGES YOU DESIRE MORE
				ADVANTAGEOUSLY WITH THEM.
3. CONSULT YOUR TAX ADVISOR. THERE MAY BE UNFAVORABLE TAX
				IMPLICATIONS ASSOCIATED WITH THE CONTEMPLATED CHANGES TO YOUR EXISTING LIFE
				INSURANCE POLICIES OR ANNUITY CONTRACTS.
As a general rule, it is often not advantageous to drop or
				change existing coverage in favor of new coverage, whether issued by the same
				or a different insurance company. Some of the reasons it may be disadvantageous
				are:
1. The amount of the annual premium under an existing life
				insurance policy may be lower than that called for by a new life insurance
				policy having the same or similar benefits. Any replacement of the same type of
				policy will normally be at a higher premium rate based upon the insured's then
				attained age.
2. Since the initial costs of a life insurance policy are
				charged against the cash value increases in the earlier life insurance policy
				years, the replacement of an old life insurance policy by a new one results in
				the policyholder sustaining the burden of these costs twice. Annuity contracts
				usually contain provision for surrender charges, therefore a replacement
				involving annuity contracts may result in the imposition of surrender
				charges.
3. The incontestable and suicide clauses begin anew in a new
				life insurance policy. This could result in a claim being denied under the new
				life insurance policy that would have been paid under the life insurance policy
				that was replaced.
4. An existing life insurance policy or annuity contract often
				has more favorable provisions than a new life insurance policy or annuity
				contract in areas such as loan interest rate, settlement options, disability
				benefits and tax treatment.
5. There may have been changes in your health since the
				purchase of the existing coverage.
6. The insurance company with which you have existing coverage
				can often make a desired change on terms that would be more favorable than if
				you replaced existing coverage with new coverage.
YOU HAVE THE RIGHT, WITHIN 60 DAYS FROM THE DATE OF DELIVERY OF
				A NEW LIFE INSURANCE POLICY OR ANNUITY CONTRACT, TO RETURN IT TO THE INSURER
				AND RECEIVE AN UNCONDITIONAL FULL REFUND OF ALL PREMIUMS OR CONSIDERATIONS PAID
				ON IT, OR IN THE CASE OF A VARIABLE OR MARKET VALUE ADJUSTMENT POLICY OR
				CONTRACT, A PAYMENT OF THE CASH SURRENDER BENEFITS PROVIDED UNDER THE POLICY OR
				CONTRACT, PLUS THE AMOUNT OF ALL FEES AND OTHER CHARGES DEDUCTED FROM GROSS
				CONSIDERATIONS OR IMPOSED UNDER THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT,
				AND MAY HAVE THE RIGHT TO REINSTATE OR RESTORE ANY LIFE INSURANCE POLICIES AND
				ANNUITY CONTRACTS THAT WERE SURRENDERED, LAPSED OR CHANGED IN THE TRANSACTION
				TO THEIR FORMER STATUS TO THE EXTENT POSSIBLE AND IN ACCORDANCE WITH THE
				INSURER'S PUBLISHED REINSTATEMENT RULES TO THE EXTENT SUCH RULES ARE NOT
				INCONSISTENT WITH THE PROVISIONS OF 11 NYCRR PART 51 (INSURANCE REGULATION
				60).
IMPORTANT:
THIS RIGHT
				SHOULD NOT BE VIEWED AS REINSTATING OR RESTORING YOUR LIFE INSURANCE POLICY OR
				ANNUITY CONTRACT TO THE SAME CONDITION AS IF IT HAD NEVER BEEN REPLACED. THERE
				MAY BE CONSEQUENCES IN REINSTATING OR RESTORING YOUR LIFE INSURANCE POLICY OR
				ANNUITY CONTRACT, INCLUDING BUT NOT LIMITED TO:
*
THE RIGHT TO REINSTATE OR RESTORE YOUR LIFE
				INSURANCE POLICY OR ANNUITY CONTRACT APPLIES ONLY TO COMPANIES SUBJECT TO NEW
				YORK INSURANCE LAWS;
*
YOUR LIFE INSURANCE POLICY OR ANNUITY CONTRACT
				IS SUBJECT TO YOUR SPECIFIC COMPANY'S REINSTATEMENT RULES, WHICH MAY VARY FROM
				COMPANY TO COMPANY. THESE RULES MAY REQUIRE PAYMENT OF BOTH PREMIUM AND
				INTEREST; HOWEVER, YOU WILL NOT BE SUBJECT TO EVIDENCE OF INSURABILITY, OR A
				NEW CONTESTABLE OR SUICIDE PERIOD;
*
YOU MAY NOT RECEIVE THE INTEREST OR INVESTMENT
				PERFORMANCE DURING THE PERIOD THE LIFE INSURANCE POLICY OR ANNUITY CONTRACT WAS
				REPLACED; AND
*
THERE MAY BE UNFAVORABLE FEDERAL INCOME TAX
				CONSEQUENCES AS A RESULT OF THE REINSTATEMENT OF YOUR LIFE INSURANCE POLICY OR
				ANNUITY CONTRACT.
IMPORTANT:
IN THE CASE OF
				A VARIABLE OR MARKET VALUE ADJUSTMENT POLICY OR CONTRACT, THE VALUE OF THE
				POLICY OR CONTRACT MAY INCREASE OR DECREASE DURING THE 60 DAY PERIOD DEPENDING
				ON THE PERFORMANCE OF THE UNDERLYING INVESTMENTS, WHICH MAY AFFECT THE VALUE OF
				THE REFUND YOU RECEIVE.
I HEREBY ACKNOWLEDGE THAT I READ THE ABOVE
				"
IMPORTANT
NOTICE" AND HAVE RECEIVED A COPY OF
				SAME.
Date:_______________________Signature of
				Applicant:___________________________________
Date:_______________________Signature of
				Applicant:___________________________________