1. (1)(a) When an application is initiated from a direct-response solicitation, the insurer shall require with each completed application for a policy or contract, a statement asking whether the applicant intends to replace, discontinue, or change an existing policy or contract.

   1. (b) If the applicant indicates a replacement or change is not intended or if the applicant fails to respond to the statement, the insurer shall send the applicant, with the policy or contract, the replacement notice in Appendix B, or other substantially similar form approved by the commissioner.

2. (2) If the insurer has proposed the replacement or if the applicant indicates a replacement is intended and the insurer continues with the replacement, the insurer shall:

   1. (a) provide an applicant or prospective applicant a replacement notice in Appendix C, or other substantially similar document filed with the commissioner; and
   2. (b) comply with the requirements of Subsection R590-93-5(1)(b), if the applicant furnishes the names of the existing insurers, and the requirements of Subsections R590-93-5(1)(c), R590-93-5(1)(d), and R590-93-5(2).

3. (3)(a) In an instance described in Subsection (2), an insurer may delete any reference to the producer, including the producer's signature, and any reference not applicable to the product being sold or replaced, without having to file the document with the commissioner.

   1. (b) The insurer's obligation to obtain the applicant's signature is satisfied if it can demonstrate that it has made a diligent effort to secure a signed copy of the replacement notice.

KEY: life insurance, annuity replacement

Date of Last Change: November 22, 2022

Notice of Continuation: April 3, 2024

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-23a-402; 31A-22-429