N.Y. Comp. Codes R. & Regs. tit. 11 § 51.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 51.5 - Duties of insurance agent and broker

Each insurance agent and broker shall:

(a) obtain with or as part of each application a completed "Definition of Replacement" in a form prescribed by the superintendent and signed by the applicant and the agent or broker and leave a copy of such form with the applicant for the applicant's records;

(b) submit to the insurer along with each application a signed and completed "Definition of Replacement"; and

(c) where a replacement has occurred or is likely to occur:

(1) obtain with or as part of each application a list of all existing life insurance policies or annuity contracts proposed to be replaced;

(2) notify the insurer that issued the policy or contract that is being replaced and the insurer replacing the life insurance policy or annuity contract of the proposed replacement;

(3) submit to the insurer that issued the policy or contract that is being replaced a list of all life insurance policies or annuity contracts proposed to be replaced, as well as the policy or contract number for such policies or contracts, together with the proper authorization from the applicant, and request the information necessary to complete the "Disclosure Statement" with respect to the life insurance policy or annuity contract proposed to be replaced. In the event that the insurer that issued the coverage that is being replaced fails to provide the information in the prescribed time, the agent or broker replacing the life insurance policy or annuity contract may use, and the insurer replacing the life insurance policy or annuity contract shall review and may accept, good faith approximations based on the information available;

(4) present to the applicant, not later than at the time the applicant signs the application, the "IMPORTANT Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts" and leave a copy of such form with the applicant for the applicant's records;

(5) have the applicant acknowledge that the "IMPORTANT Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts" has been received and read;

(6) submit with the application to the insurer replacing the life insurance policy or annuity contract: a list of all life insurance policies or annuity contracts proposed to be replaced; a copy of the sales material, including the proposal used in the sale of the life insurance policy or annuity contract; and proof of receipt by the applicant of the "IMPORTANT Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts"; and

(7) prior to the delivery of the life insurance policy or annuity contract, submit to the insurer replacing the life insurance policy or annuity contract an accurate and complete "Disclosure Statement" signed by the agent or broker in the appropriate form prescribed in Appendices 10A or 10B to this Part. The statement shall specify the primary reasons for recommending the new life insurance policy or annuity contract and why the existing life insurance policy or annuity contract cannot meet the applicant's objectives.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 51.5

Amended, New York State Register January 21, 2015/Volume XXXVII, Issue 03, eff.4/21/2015