Section 3 AAC 26.805 - Duties of a replacing insurer that uses an insurance producer(a) In connection with a replacement, a replacing insurer shall (1) verify that (A) the replacing insurer has received the forms required under 3 AAC 26.795(e) and (f); and(B) the forms received are in compliance with 3 AAC 26.795(e) and (f);(2) notify any other existing insurer that may be affected by the proposed replacement of that proposed replacement within five working days (A) after receipt of a completed application that includes a statement as required under 3 AAC 26.795(a) that an applicant has an existing life insurance policy or annuity contract; or(B) after receipt of other information indicating that an applicant has an existing life insurance policy or annuity contract;(3) mail a copy of the available illustration or policy summary for the proposed life insurance policy or the available disclosure document for the proposed annuity contract to an existing insurer within five working days after receipt of a request from an existing insurer;(4) retain copies of the notifications regarding replacement required under 3 AAC 26.795(b) indexed by insurance producer for at least five years and, upon request, provide copies of the notifications to the director;(5) include in the life insurance policy or annuity contract the right to return the life insurance policy or annuity contract within 30 days after the delivery of the life insurance policy or annuity contract, and (A) for a life insurance policy or annuity contract other than a variable or market value-adjusted life insurance policy or annuity contract, the right to receive an unconditional full refund of all premiums or considerations paid, including any fees or charges imposed under the life insurance policy or annuity contract;(B) for a variable or market value-adjusted life insurance policy or annuity contract, the right to receive payment of the cash surrender value provided under the life insurance policy or annuity contract plus the fees or other charges deducted from the gross premiums or considerations or otherwise imposed under the life insurance policy or annuity contract; and(6) provide the life insurance policy or annuity contract owner notice of the owner's rights under (5) of this subsection.(b) In a transaction in which the replacing insurer is the same as the existing insurer or the insurers are subsidiaries or affiliates under common ownership or control, the replacing insurer shall, subject to (c) of this section, reduce the incontestability and suicide periods in the new life insurance policy or annuity contract by the amount of time that has elapsed under the replaced life insurance policy's or annuity contract's incontestability and suicide periods up to the amount of the replaced life insurance policy or annuity contract.(c) For a financed purchase of a life insurance policy or annuity contract, the reduction in the incontestability and suicide periods under (b) of this section may be limited to the amount by which the amount of the replaced life insurance policy or annuity contract is reduced by the use of policy values to finance the new life insurance policy or annuity contract.(d) If a replacing insurer prohibits an insurance producer from using sales material other than the sales material approved by the replacing insurer, the replacing insurer shall within 10 days after issuance of the new life insurance policy or annuity contract (1) notify the applicant that the insurance producer has represented to the replacing insurer that copies of all sales material have been left with the applicant;(2) provide the applicant a toll-free telephone number to contact the compliance personnel of the replacing insurer if the applicant did not receive a copy of all sales material; and(3) notify the applicant of the importance of retaining copies of the sales material.(e) A replacing insurer shall maintain copies of the notification required in (d) of this section for at least five years after termination or expiration of the life insurance policy or annuity contract.Eff. 7/25/2008, Register 187In 2010 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 21.36.150 as AS 21.36.900. As of Register 196 (January 2011), the regulations attorney made a conforming technical revision under AS 44.62.125(b)(6), to the authority citation that follows 3 AAC 26.805, so that the citation to former AS 21.36.150 now refers to the renumbered statute, AS 21.36.900.
Authority:AS 21.06.090
AS 21.36.020
AS 21.36.030
AS 21.36.040
AS 21.36.050
AS 21.36.900