§ 81.4. Duties of agents and brokers.
(a) The agent or broker who initiates the application shall submit to the insurer to which an application for life insurance or annuity is presented, with or as part of each application:
(1) A statement signed by the applicant as part of each application as to whether replacement of existing life insurance or annuity is involved in the transaction.
(2) A signed statement as to whether the agent or broker knows replacement is or may be involved in the transaction.
(b) If replacement is involved, the agent or broker shall:
(1) Present to the applicant, not later than at the time of taking the application, a Notice Regarding Replacement of Life Insurance and Annuities in the form as described in Appendix A (relating to notice regarding replacement of life insurance and annuities), or other substantially similar form filed and accepted prior to use by the Commissioner. The notice shall be signed by both the applicant and the agent or broker and left with the applicant.
(2) Obtain with or as part of each application a list of existing life insurance or annuities, or both, to be replaced and properly identified by name of insurer, the insured and contract number. If a contract number has not been assigned by the existing insurer, alternative identification, such as an application or receipt number, shall be listed.
(3) Leave with the applicant the original or a copy of written or printed communications used for presentation to the applicant relative to policies or annuities associated with the replacement sale.
(4) Submit to the replacing insurer with the application a copy of the notice regarding replacement of life insurance and annuities provided under paragraph (1).
(c) An agent or broker who uses written or printed communications in a conservation shall leave with the applicant the original or a copy of materials relative to policies or annuities associated with the replacement sale.
Source The provisions of this § 81.4 corrected July 11, 1986, effective October 14, 1986, 16 Pa.B. 2523.
Notes of Decisions It was a violation of this section to represent on insurance applications that the life insurance was not to be a replacement policy when the agent knew that one of the applications was for a replacement policy. McDermond v. Foster, 561 A.2d 70 (Pa. Cmwlth. 1989).
Cross References This section cited in 31 Pa. Code § 81.3 (relating to exemptions); and 31 Pa. Code § 81.6 (relating to duties of insurers that use agents or brokers).
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