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 insurance policy or existing annuity contract.

B. Duties of Insurer if Replacement or Change Is Not Intended. 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 life insurance policy or annuity contract, the notice regarding replacement in Regulation .11 of this chapter, or other substantially similar notice approved by the Commissioner.

C. Duties of Insurer if Insurer Proposes Replacement or if Replacement Intended.

(1) If an insurer has proposed a replacement or if the applicant indicates a replacement is intended, and the insurer continues with the replacement, the insurer shall:

(a) Provide an applicant or prospective applicant with the life insurance policy or annuity contract a notice, as described in Regulation .12 of this chapter, or other substantially similar notice approved by the Commissioner; and

(b) Comply with the requirements of Regulation .06A(2) and (3) of this chapter, if the applicant furnishes the names of the existing insurers, and the requirements of Regulation .06A(4) and (5) and C of this chapter.

(2) If an insurer is required to provide a notice pursuant to §C(1)(a) of this regulation, the insurer may delete the references to the insurance producer, including the insurance producer's signature, and references not applicable to the product being sold or replaced, without having to obtain approval of the form from the Commissioner.

(3) The insurer's obligation to obtain the applicant's signature shall be satisfied if the insurer can demonstrate that it has made a diligent effort to secure a signed copy of the notice required by §C(1)(a) of this regulation.

(4) The requirement to make a diligent effort shall be satisfied if the insurer includes in the mailing a self-addressed postage-prepaid envelope with instructions for the return of the signed notice required by §C(1)(a) of this regulation.