18 Del. Admin. Code § 1204-5.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 1204-5.0 - Duties of Agents and Brokers

5.1 Each agent or broker who initiates the application shall, on the request of the prospective purchaser, furnish the Buyers Guide as described by Regulation 29 and shall submit to the insurer to which an application for life insurance or annuity is presented, with or as a part of each application:

5.1.1 statement signed by the applicant as to whether the replacement of existing life insurance or annuities are involved in the transaction; and

5.1.2 a signed statement as to whether the agent or broker knows replacement is or may be involved in the transaction.

5.2 Where replacement is involved, the agent or broker shall:

5.2.1 Present to the applicant, not later than at the time of taking the application, a "Notice Regarding Replacement" (Delaware Insurance Form R, attached as Exhibit A), or other substantially similar form approved by the Commissioner. The notice shall be signed by both the applicant and the agent or broker and a copy left with the applicant.

5.2.2 Obtain with or as a part of each application a list of all existing life insurance and/or annuity to be replaced, properly identified by name of insurer, the insured and contract number. If a contract number has not been assigned by the existing insurer, provide other identifying information such as an application or receipt number.

5.2.3 Leave with the applicant not later than the time of the taking of the application the original or a copy of written or printed communications used for presentation to the applicant.

5.2.4 Submit to the replacing insurer with the application a copy of the replacement notice provided pursuant to section 5.2.1.

5.3 Each agent or broker who uses written or printed communication in a conservation shall leave with the applicant the original or a copy of such materials used.

5.4 Written or printed communication as used in this section means individualized, written or printed sales aids of all kinds. Sales aids of a general nature and handwritten notes prepared by an agent or broker at the point of sale shall not be considered written communications within the meaning of this section.

18 Del. Admin. Code § 1204-5.0