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31.09.05.00.htm 31.09.05.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 09 LIFE INSURANCE AND ANNUITIES Chapter 05 Replacement of Life Insurance and Annuities Authority: Insurance Article, §2-109 and 27-213, Annotated Code of Maryland
31.09.05.01.htm 31.09.05.01. 01 Purpose.. The purpose of this chapter is to:. A. Regulate the activities of insurers and insurance producers with respect to the replacement of existing life insurance and annuities; andB. Protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduct to be observed in replacement or financed purchase transactions by:1) Ensuring that purchasers receive information to make a decision in the purchasers' own best interests;
31.09.05.02.htm 31.09.05.02. 02 Scope.. A. "Direct Solicitation" Defined. In this regulation, the term "direct solicitation" does not include any group meeting:1) Held by an insurance producer solely for the purpose of educating individuals about or enrolling individuals in a plan or arrangement; orInitiated by an individual employee or group member, assisting with the selection of investment options offered by a single insurer in connection with enrolling that individual employee or group member.
31.09.05.03.htm 31.09.05.03. 03 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Direct-response solicitation" means a solicitation made:. a) Through a sponsoring or endorsing entity; or. b) Individually solely by mail, telephone, internet, or other mass communication medium.. 2) "ERISA" means the federal Employee Retirement Income and Security Act of 1974.. 3) Existing Annuity Contract..
31.09.05.04.htm 31.09.05.04. 04 Duties of Insurance Producer.. A. Signed Statement. An insurance producer who initiates an application for a life insurance policy or annuity contract shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the insurance producer as to whether the applicant has any existing life insurance policy or existing annuity contract.B. Applicant Without Existing Life Insurance Policy or Existing Annuity Contract. If the applicant d
31.09.05.05.htm 31.09.05.05. 05 Duties of Insurers that Use Insurance Producers.. A. System of Supervision and Control.. 1) An insurer shall maintain a system of supervision and control to ensure compliance with the requirements of this chapter that includes, at a minimum, procedures to:a) Inform its insurance producers of the requirements of this regulation and incorporate the requirements of this regulation into all relevant insurance-producer training manuals prepared by the insurer;b) Provide to each insura
31.09.05.06.htm 31.09.05.06. 06 Duties of Replacing Insurers that Use Insurance Producers.. A. In General. If a replacement is involved in a transaction, the replacing insurer shall:. 1) Verify that the required forms are received and are in compliance with this chapter;. 2) Notify any other existing insurer that may be affected by the proposed replacement within 5 business days after:a) Receipt of a completed application indicating replacement at the home office of the replacing insurer; or
31.09.05.07.htm 31.09.05.07. 07 Duties of Existing Insurer.. A. In General. For replacement transactions, the existing insurer shall:. 1) Retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least 5 years or until the conclusion of the next regular market conduct examination conducted by the insurance department of the insurer's state of domicile, whichever is later; and2) Within 5 business days after receipt of a request from an owner of a lif
31.09.05.08.htm 31.09.05.08. 08 Duties of Insurers with Respect to Direct Response Solicitations.. A. Inquiry Regarding Intent. For an application initiated as a result of a direct response solicitation, the insurer shall require, with or as part of each completed application for a life insurance policy or annuity contract, a statement asking whether the applicant, by applying for the proposed life insurance policy or annuity contract, intends to replace, discontinue, or change an existing life
31.09.05.09.htm 31.09.05.09. 09 Violations and Penalties.. A. Prohibition on Twisting. A failure to comply with this chapter is a violation of Insurance Article, §27-213, Annotated Code of Maryland, including:1) Deceptive or misleading information set forth in sales material;. 2) Failing to ask the applicant, in completing the application, the pertinent questions regarding the possibility of financing or replacement;3) Intentional incorrect recording of an answer;. 4) Advising an applicant
31.09.05.10.htm 31.09.05.10. 10 Replacement Form A. IMPORTANT NOTICE: REPLACEMENT OF LIFE INSURANCE OR ANNUITIES. This document shall be signed by the applicant and the insurance producer, if there is one, and a copy left with the applicant.You are contemplating the purchase of a life insurance policy or annuity contract. In some cases this purchase may involve discontinuing or changing an existing life insurance policy or annuity contract. If so, a replacement is occurring. Financed purchases are also consider
31.09.05.11.htm 31.09.05.11. 11 Replacement Form B. NOTICE REGARDING REPLACEMENT REPLACING YOUR LIFE INSURANCE POLICY OR ANNUITY?. Are you thinking about buying a new life insurance policy or annuity and discontinuing or changing an existing one? If you are, your decision could be a good one―or a mistake. You will not know for sure unless you make a careful comparison of your existing benefits and the proposed life insurance policy or annuity contract's benefits.Make sure you understand
31.09.05.12.htm 31.09.05.12. 12 Replacement Form C. IMPORTANT NOTICE: REPLACEMENT OF LIFE INSURANCE OR ANNUITIES. You are contemplating the purchase of a life insurance policy or annuity contract. In some cases this purchase may involve discontinuing or changing an existing life insurance policy or annuity contract. If so, a replacement is occurring. Financed purchases are also considered replacements.A replacement occurs if a new life insurance policy or annuity contract is purchased and, in connect
31.09.05.9999.htm 31.09.05.9999. Administrative History Effective date: May 1, 1962. Amended effective August 1, 1967; March 1, 1968; May 1, 1968. Chapter revised effective January 1, 1980 (6:15 Md. R. 1278). Chapter revised effective April 1, 1985 (12:3 Md. R. 244). Chapter recodified from COMAR 09.30.31 to COMAR 31.09.05, July 1998 ―. Regulations .01―12 repealed and new Regulations .01―12 adopted effective January 1, 2002 (28:15 Md. R. 1401)Regulation .02B amended effective March 10, 2008 (35:5 Md. R. 642).
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