North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 12 - LIFE AND HEALTH DIVISION › Section .0600 - REPLACEMENT REGULATIONS › Section 12 .0605 - DUTIES OF PRODUCERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) 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 has existing policies or contracts. Electronic capture of
				signature is acceptable in accordance with The Uniform Electronic Transactions
				Act, G.S. 66, Article 40. If the answer is "no," the producer's duties with
				respect to replacement are complete.
(b) If the applicant answered "yes" to the
				question regarding existing coverage referred to in Paragraph (a) of this Rule,
				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 format
				required by
				11 NCAC
				12 .0611. 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 and any required signatures are captured
				electronically, the notice shall be delivered to the applicant within two
				business days of receipt by the home office of the insurer.
(c) The notice shall list all life insurance
				policies or annuities proposed to be replaced, 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.
(d) 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.
(e) Except as provided in
				11 NCAC
				12 .0612(c), 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.
Authority
				  G.S.
				  58-2-40;
				  58-3-115;
				  58-58-1;
				  58-58-40;
Eff. October
				  1, 1985;
Amended Eff. August 1, 2004; October 1, 1989;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. May 1, 2018.