211 CMR 34.06 - Duties of Insurers that Use Agents or Brokers

Current through Register 1466, April 1, 2022

(1) Each insurer that uses an agent or broker in a life insurance or annuity sale shall:
(a) require with or as part or each completed application for life insurance or annuity, a statement signed by the agent or broker as to whether he or she knows replacement is or may be involved in the transaction; and
(b) where a replacement is involved:
1. require from the agent or broker with the application for life insurance or annuity
a. a list of all of the applicant's existing life insurance or annuity to be replaced. Such existing life insurance or annuity shall be identified by name of insurer, insured and contract number. If a number has not been assigned by the existing insurer, alternative identification, such as an application or receipt number, shall be listed.
b. a copy of the replacement notice provided the applicant pursuant to 211 CMR 34.04(2)(a).
2. send to each existing insurer a written communication advising of the replacement or proposed replacement and the identification information obtained, pursuant to 211 CMR 34.06(1)(b)1. and a policy summary, as defined in the Life Insurance Solicitation Regulation, 211 CMR 31.04. Cost indices and equivalent level annual dividends figures need not be included in the policy summary. This written communication shall be made within seven working days of the date the application is received in the replacing insurer's home or regional office, or the date the proposed policy or contract is issued, whichever is sooner.
3. require that each existing insurer, or such insurer's agent or broker that undertakes a conservation shall, within 20 days from the date the written communication and the materials required in 211 CMR 34.06(1)(b)1. and 2. is received by the existing insurer, furnish the policy owner with a policy summary for the existing life insurance. Such policy summary shall be completed in accordance with the Life Insurance Solicitation Regulation, 211 CMR 31.04, and shall provide information relating to premiums, cash values, death benefits and dividends, If any, for at least the next five policy years. The policy summary shall include the amount of any outstanding indebtedness, the sum of any dividend accumulations or additions, and may include any other information that is not in violation of any regulation or statute. Cost indices and equivalent level annual dividend figures need not be included. The replacing insurer may request the existing insurer to furnish it with a copy of the summaries, which shall be furnished within five working days of the receipt of the request.
(c) in the case of a replacing insurer, maintain evidence of the notice regarding replacement, the policy summary and any ledger statements used. The existing insurer shall maintain evidence of policy summaries and any ledger statements used in any conservation. Evidence that all requirements were met shall be maintained for at least three years or until the conclusion of the next succeeding regular examination by the insurance department of its state of domicile, whichever is earlier.
(d) in the case of a replacing insurer, shall provide in its policy or in a separate written notice which is delivered with the policy that the applicant has a right to an unconditional refund of all premiums paid, which right may be exercised within a period of 20 days commencing from the date of delivery of the policy.


211 CMR 34.06

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