Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 25 - LIFE AND ANNUITIES › Part 4 - Life Insurance and Annuities Replacement (formerly Insurance Regulation 29) (230-RICR-20-25-4) › Section 230-RICR-20-25-4.4 - Duties of Producers

Current through June 14, 2024
A. Each producer
				  who initiates an application shall submit to the insurer, with or as part of
				  each application, a statement signed by both the applicant and the producer as
				  to whether the applicant has existing policies or contracts. 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 §
										4.4(A)   of this Part,
				  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 form as
				  described in Appendix A which has been included in a bulletin issued for that
				  purpose and available on the Department's website, or other substantially
				  similar form approved by the Director. However, no approval shall be required
				  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 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 is presented electronically, the replacing
				  insurer shall mail the applicant a copy of the notice within five (5) business
				  days after the application is submitted to the replacing insurer.
C. The notice 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.
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
				  §
										4.6(C)   of this Part, 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.