Section 0780-01-24-.07 - DUTIES OF INSURERS THAT USE AGENTSEach insurer that uses an agent in a life insurance sale shall:
(1) Require with or as part of each completed application for life insurance, a statement signed by the agent as to whether or not he or she knows replacement is or may be involved in the transaction.(2) Where a replacement is involved:(a) Require from the agent with the application for life insurance (i) a list of all of the applicant's existing life insurance to be replaced and (ii) a copy of the Replacement Notice provided the applicant pursuant to §0780- 1-24-.05 (2) (a). Such existing life insurance shall be identified by name of insurer, insured and contract number. If a number has not been assigned by the existing insurer, alternative identification, such as an application or receipt number, shall be listed.(b) Send by certified or registered mail to each existing insurer a written communication advising of the replacement or proposed replacement and the identification information obtained pursuant to §0780-1-24-.07(2)(a) and a Policy Summary or ledger statement containing Policy Data on the proposed life insurance as required by the Life Insurance Solicitation Rule. Cost indices and equivalent level annual dividend figures need not be included in the Policy Summary or ledger statement. This written communication shall be made within five (5) working days of the date the application is received in the replacing insurer's home or regional office, or the date the proposed policy or contract is issued, whichever is sooner.(c) Each existing insurer or such insurer's agent that undertakes a conservation shall, within twenty days from the date the written communication plus the materials required in §0780-1-24-.07(2)(a) and §0780-1-24-.07(2)(b) is received by the existing insurer, furnish the policy-owner with a Policy Summary for the existing life insurance or ledger statement containing Policy Data on the existing policy. Such Policy Summary or ledger statement shall be completed in accordance with the provisions of Life Insurance Solicitation Rule, except that information relating to premiums, cash values, death benefits and dividends, if any, shall be computed from the current policy year of the existing life insurance. The Policy Summary or ledger statement shall include the amount of any outstanding indebtedness, the sum of any dividend accumulations or additions, and may include any other information that is not in violation of the rule or statute. Cost indices and equivalent level annual dividend figures need not be included. The replacing insurer may request the existing insurer to furnish it with a copy of the Summaries or ledger statement, which shall be within five working days of the receipt of the request.(d) In the case of an agent who has been licensed by the Tennessee Department of Commerce and Insurance for less than one hundred twenty (120) days, immediately forward to the existing insurer by certified or registered mail a copy of the notification required by §0780-1-24-.05(4).(3) The replacing insurer shall maintain evidence of the ''Notice Regarding Replacement'', the Policy Summary and any ledger statements used, and a replacement register, cross indexed, by replacing agent and existing insurer to be replaced. The existing insurer shall maintain evidence of Policy Summaries or ledger statements used in any conservation. Evidence that all requirements were met shall be maintained for at least five years or until the conclusion of the next succeeding regular examination by the Insurance Department of its state of domicile, whichever is earlier.(4) The replacing insurer shall provide in its policy or in a separate written notice which is delivered with the policy that the applicant has a right to an unconditional refund of all premiums paid, which right may be exercised within a period of twenty days commencing from the date of delivery of the policy.Tenn. Comp. R. & Regs. 0780-01-24-.07
Original rule certified June 10, 1974. Repeal and new rule filed August 30, 1982; effective October 1, 1982. Repeal and new rule filed May 17, 1985; effective September 1, 1985.Authority: T.C.A. §§ 56-1-701, 56-2-301, 56-6-127 and 56-8-104.