The purpose of this rule is:

1. (1) To regulate the activities of insurers and agents with respect to the replacement of existing life insurance.

2. (2) To protect the interests of life insurance purchasers by establishing minimum standards of conduct to be observed in replacement transactions by:

   1. (a) Assuring that purchasers receive information with which a decision can be made in his or her own best interest;
   2. (b) Reducing the opportunity for misrepresentation and incomplete disclosures; and
   3. (c) Establishing penalties for failure to comply with requirements of this rule.

Authority: T.C.A. §§56—1—701, 56—2—301, 56—6—127 and 56—8—104. Administrative History: Original rule certified June 10, 1974. Repeal and new rule filed August 30, 1982; effective October 1, 1982. Repeal and new rule filed May 17, 1985; effective September 1, 1985.