Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 80 - TRADE PRACTICES › Section 836-080-0014 - Duties of Agent

Current through Register Vol. 63, No. 7, July 1, 2024
(1) An insurance
			 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
			 insurance producer as to whether the applicant has existing policies or
			 contracts and, at the option of the insurer, as to whether the applicant is
			 replacing any of the existing policies or contracts. If the first question is
			 asked alone and the answer is "no," or if both questions are asked and the
			 answer to the optional question is "no," the insurance producer's duties with
			 respect to replacement are complete, except as provided in section (2) of this
			 section.
(2) If the applicant
			 answered "yes" to the question whether the applicant has existing coverage
			 referred to in section (1) of this rule, and the question is asked alone, or if
			 both questions are asked and the answer is "yes" to both, the insurance
			 producer shall present and read to the applicant, not later than at the time of
			 taking the application, a notice regarding replacements in the form as
			 described in Appendix A to this rule or other substantially similar form
			 approved by the Director. Approval is not required, however, when amendments to
			 the notice are limited to the omission of references not applicable to the
			 product being sold or replaced. The notice shall be signed by both the
			 applicant and the insurance producer attesting that the notice has been read
			 aloud by the insurance producer or that the applicant did not wish the notice
			 to be read aloud (in which case the insurance producer need not have read the
			 notice aloud) and left with the applicant.
(3) The notice under section (2) of this rule
			 shall list all life insurance policies or annuities proposed to be replaced,
			 properly 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.
(4) In connection with a replacement
			 transaction an insurance 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. Electronically presented sales material shall be provided
			 to the policy or contract owner in printed form not later than at the time of
			 policy or contract delivery.
(5)
			 Except as provided in OAR 836-080-0029(3), in connection with a replacement
			 transaction an insurance 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 rule, a statement identifying any preprinted or electronically
			 presented insurer-approved sales materials used, and copies of any
			 individualized sales materials, including any illustrations related to the
			 specific policy or contract purchased.
Appendices referenced are available from the
				  agency.
Stat. Auth.: ORS
				  731.244 &
				  746.085
Stats. Implemented: ORS
				  746.085 &
				  746.240