S.D. Admin. R. 20:06:08:63

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:06:08:63 - Requirements for direct response solicitation

In the case of an application that is initiated as a result of a direct response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or contract, intends to replace, discontinue, or change an existing policy or contract. 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, a notice regarding replacement in Appendix E, or other substantially similar form approved by the director.

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) Provide the applicant or prospective applicant a notice, as described in Appendix F, or other substantially similar form approved by the director. The notice must be provided with the policy or contract. In this instance the insurer may delete the references to the producer, including the producer's signature, and references not applicable to the product being sold or replaced, without having to obtain approval of the form from the director. The insurer's obligation to obtain the applicant's signature is satisfied if the insurer can demonstrate that the insurer made a diligent effort to secure a signed copy of the notice referred to in this subdivision. The requirement to make a diligent effort is satisfied if the insurer includes in the mailing a self-addressed postage prepaid envelope with instructions for the return of the signed notice referred to in this subdivision; and

(2) Comply with the requirements of subdivision 20:06:08:60(2), if the applicant furnishes the names of the existing insurers, and the requirements of § 20:06:08:60.

This section only applies to insurers with respect to direct response solicitations.

S.D. Admin. R. 20:06:08:63

39 SDR 55, effective 10/4/2012.

General Authority: SDCL 58-33A-7(10).

Law Implemented: SDCL 58-33-5, 58-33-6, 58-33-7, 58-33-8, 58-33A-1, 58-33A-2.