Iowa Admin. Code r. 191-16.29
Current through Register Vol. 47, No. 11, December 11, 2024
Rule 191-16.29 - Violations and penalties(1) Any failure to comply with these rules shall be considered a violation of rules 191-15.7 (507B) and 191-15.8 (507B). Examples of violations include but are not limited to: a. Any deceptive or misleading information set forth in sales material;b. Failing to ask the applicant in completing the application the pertinent questions regarding the possibility of financing or replacement;c. The intentional incorrect recording of an answer;d. Advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer; ore. Advising a policy or contract owner to write directly to the insurer in such a way as to attempt to obscure the identity of the replacing producer or insurer.(2) Policy and contract owners have the right to replace existing life insurance policies or annuity contracts after indicating in or as a part of applications for new coverage that replacement is not their intention; however, patterns of such action by policy or contract owners of the same producer shall be deemed prima facie evidence of the producer's knowledge that replacement was intended in connection with the identified transactions, and these patterns of action shall be deemed prima facie evidence of the producer's intent to violate these rules.(3) Where it is determined that the requirements of these rules have not been met, the replacing insurer shall provide to the policy owner an in-force illustration if available or policy summary for the replacement policy or available disclosure document for the replacement contract and the appropriate notice regarding replacements in Appendix A or C.(4) Violations of these rules shall subject the violators to penalties that may include the revocation or suspension of a producer's or insurer's license, monetary fines, the forfeiture of any commissions or compensation paid to a producer as a result of the transaction in connection with which the violations occurred, or any other penalties authorized by Iowa Code chapter 507B or 191-Chapter 15.Iowa Admin. Code r. 191-16.29
Adopted by IAB March 20, 2024/Volume XLVI, Number 19, effective 4/24/2024