Section R590-93-5 - Duties of a Replacing Insurer That Uses a Producer(1) If a replacement is involved in a transaction, the replacing insurer shall:(a) verify that the required forms are received and comply with this rule;(b) notify any other insurer who may be affected by the proposed replacement within five business days of receipt of a completed application indicating replacement, or when the replacement is identified if not indicated on the application, and send a copy of the available illustration or the policy summary for the proposed policy or disclosure document for the proposed contract within five business days of a request from an existing insurer;(c) maintain copies of the replacement notice required in Subsection 31A-22-429(2), indexed by producer, for at least five years or until the next regular examination by the insurance department of a company's state of domicile, whichever is later; and(d) provide to the policy or contract holder notice of the right to return the policy or contract within 30 days of the delivery of the contract and receive an unconditional full refund of all premiums or considerations paid on it.(e) The notice in Subsection (1)(d) may be included in the documents Appendix A or Appendix C.(2) Nothing in Subsection (1) preempts the requirements of Section 31A-22-423.(3) In a transaction where the replacing insurer and the existing insurer are the same or are subsidiaries or affiliates under common ownership or control, the replacing insurer shall allow credit for the time elapsed under the replaced policy's or contract's incontestability and suicide periods up to:(a) the face amount of the existing policy or contract; or(b) in the case of a financed purchase, the reduction in the face amount of the existing policy due to the use of existing policy values to fund the new policy or contract.(4) 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 Subsection 31A-22-429(5) regarding sales materials, the insurer may:(a) require with each application a statement signed by the producer that: (i) represents that the producer used only company-approved sales material; and(ii) states that copies of all sales material were left with the applicant in accordance with Subsection 31A-22-429(4);(b) within ten business days of the issuance of the policy or contract: (i) a person whose duties are separate from the marketing area of the insurer shall notify the applicant that the producer has represented that copies of all sales material have been left with the applicant in accordance with Subsection 31A-22-429(4);(ii) provide the applicant a toll-free number to contact company compliance personnel; and(iii) stress the importance of retaining copies of the sales material for future reference; and(c) maintain 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.Utah Admin. Code R590-93-5
Amended by Utah State Bulletin Number 2022-16, effective 8/8/2022