S.D. Admin. R. 20:06:08:61

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:08:61 - Duties of replacing insurer using producers when company approved sales material required

If an insurer prohibits the use of sales material other than that approved by the company, as an alternative to the requirements made of an insurer pursuant to § 20:06:08:53, the insurer may:

(1) Require with each application a statement signed by the producer that:

(a) Represents that the producer used only company-approved sales material; and

(b) States that copies of all sales material were left with the applicant in accordance with § 20:06:08:52;

(2) Within ten days of the issuance of the policy or contract:

(a) Notify the applicant by sending a letter or by verbal communication with the applicant by a person whose duties are separate from the marketing area of the insurer, that the producer has represented that copies of all sales material have been left with the applicant in accordance with § 20:06:08:52;

(b) Provide the applicant with a toll free number to contact company personnel involved in the compliance function if such is not the case; and

(c) Stress the importance of retaining copies of the sales material for future reference; and

(3) Be able to produce a copy of the letter or other verification in the policy file for at least five years after the termination or expiration of the policy or contract.

This section only applies when a replacing insurer uses a producer and the use of company sales material is required.

S.D. Admin. R. 20:06:08:61

39 SDR 55, effective 10/4/2012.

General Authority: SDCL 58-33A-7(10).

Law Implemented: SDCL 58-33-5, 58-33-6, 58-33-7, 58-33-8, 58-33A-1, 58-33A-2.