S.D. Admin. R. 20:06:08:62

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:08:62 - Duties of existing insurer

Where a replacement is involved in the transaction, the existing insurer shall:

(1) Retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least five years or until the conclusion of the next regular examination conducted by the Insurance Department of its state of domicile, whichever is later;

(2) Send a letter to the policy or contract owner within five business days of receipt of a notice that an existing policy or contract is being replaced, notifying the owner of the right to receive information regarding the existing policy or contract values including, if available, an in-force illustration or policy summary if an in-force illustration cannot be produced. The insurer shall provide this information within five business days of receipt of the request from the policy or contract owner; and

(3) Upon receipt of a request to borrow, surrender, or withdraw any policy values, send a notice, advising the policy owner that the release of policy values may affect the guaranteed elements, non-guaranteed elements, face amount, or surrender value of the policy from which the values are released. The notice shall be sent separate from the check if the check is sent to anyone other than the policy owner. In the case of consecutive automatic premium loans, the insurer is only required to send the notice at the time of the first loan.

S.D. Admin. R. 20:06:08:62

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.