New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 51 - Replacement of Life Insurance Policies and Annuity Contracts › Section 51.5 - Duties of insurance agent and broker

Current through Register Vol. 46, No. 28, July 10, 2024
Each insurance agent and broker shall:
(a) obtain with or as part of each
				  application a completed "Definition of Replacement" in a form prescribed by the
				  superintendent and signed by the applicant and the agent or broker and leave a
				  copy of such form with the applicant for the applicant's records;
(b) submit to the insurer along with each
				  application a signed and completed "Definition of Replacement"; and
(c) where a replacement has occurred or is
				  likely to occur:
(1) obtain with or as part
				  of each application a list of all existing life insurance policies or annuity
				  contracts proposed to be replaced;
(2) notify the insurer that issued the policy
				  or contract that is being replaced and the insurer replacing the life insurance
				  policy or annuity contract of the proposed replacement;
(3) submit to the insurer that issued the
				  policy or contract that is being replaced a list of all life insurance policies
				  or annuity contracts proposed to be replaced, as well as the policy or contract
				  number for such policies or contracts, together with the proper authorization
				  from the applicant, and request the information necessary to complete the
				  "Disclosure Statement" with respect to the life insurance policy or annuity
				  contract proposed to be replaced. In the event that the insurer that issued the
				  coverage that is being replaced fails to provide the information in the
				  prescribed time, the agent or broker replacing the life insurance policy or
				  annuity contract may use, and the insurer replacing the life insurance policy
				  or annuity contract shall review and may accept, good faith approximations
				  based on the information available;
(4) present to the applicant, not later than
				  at the time the applicant signs the application, the "IMPORTANT Notice
				  Regarding Replacement or Change of Life Insurance Policies or Annuity
				  Contracts" and leave a copy of such form with the applicant for the applicant's
				  records;
(5) have the applicant
				  acknowledge that the "IMPORTANT Notice Regarding Replacement or Change of Life
				  Insurance Policies or Annuity Contracts" has been received and read;
(6) submit with the application to the
				  insurer replacing the life insurance policy or annuity contract: a list of all
				  life insurance policies or annuity contracts proposed to be replaced; a copy of
				  the sales material, including the proposal used in the sale of the life
				  insurance policy or annuity contract; and proof of receipt by the applicant of
				  the "IMPORTANT Notice Regarding Replacement or Change of Life Insurance
				  Policies or Annuity Contracts"; and
(7) prior to the delivery of the life
				  insurance policy or annuity contract, submit to the insurer replacing the life
				  insurance policy or annuity contract an accurate and complete "Disclosure
				  Statement" signed by the agent or broker in the appropriate form prescribed in
				  Appendices 10A or 10B to this Part. The statement shall specify the primary
				  reasons for recommending the new life insurance policy or annuity contract and
				  why the existing life insurance policy or annuity contract cannot meet the
				  applicant's objectives.