1. (1) A violation of this rule shall occur if an agent or insurer, during a replacement transaction, uses a substantially inaccurate presentation or comparison of a contract’s premiums and benefits or dividends and values, if any. Any insurer, agent, representative, officer or employee of such insurer failing to comply with the requirements of this rule shall be subject to such penalties as may be appropriate under the Insurance Laws.
2. (2) Patterns of action by policyowners who purchase replacing policies from the same agent, after indicating on applica- tions that replacement is not involved, shall be deemed prima facie evidence of the agent’s knowledge that replace- ment was intended in connection with the sale of those policies, and such patterns of action shall be deemed prima facie evidence of the agent’s intent to violate this rule.
3. (3) This rule does not prohibit the use of additional material other than that which is required that is not in violation of this rule or any other statute or 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.