Section 760 IAC 1-16.1-2 - Replacement definedAuthority: IC 27-1-3-7
Affected: IC 27-4-1-8
Sec. 2.
"Replacement" means any transaction in which new life insurance is to be purchased, and it is known or should be known to the proposing agent, or to the proposing insurer if there is no agent, that by reason of such transaction, existing life insurance has been or is to be:
(A) Lapsed, forfeited, surrendered, or otherwise terminated;(B) Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;(C) Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid;(D) Reissued with any reduction in cash value; or(E) Pledged as collateral or subjected to borrowing or withdrawal, whether in a single loan or under a schedule of borrowing or withdrawal over a period of time for amounts in the aggregate exceeding twenty-five percent (25%) of the cash or loan value set forth in the policy.Department of Insurance; Reg 28, Sec 3; filed Oct 12, 1979, 4:50 pm: 2 IR 1569, eff Jan 1, 1980; filed Aug 20, 1982, 2:58 pm: 5 IR 2230, eff Jan 1, 1983; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 531; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed November 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFAReadopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA