Mich. Admin. Code R. 500.602 - Duties of agents

Rule 602.

(1) A life insurance agent shall obtain, with, or as a part of, each application for life insurance, a statement signed by the applicant as to whether the insurance for which application is made will replace existing life insurance.

(2) A life insurance agent shall submit to the insurer, in connection with each application for life insurance, a statement as to whether, to the best of his or her knowledge, replacement is involved in the transaction.

(3) If replacement is involved in a transaction, the life insurance agent shall do all of the following:

(a) Obtain, with, or as a part of, each application, a list of all existing life insurance policies proposed to be replaced.

(b) Present to the applicant, not later than at the time of taking the application, a completed information statement signed by the agent and a notice to applicants regarding replacement of life insurance, in such forms as are prescribed by the commissioner, and leave the forms with the applicant for his or her records.

(c) Leave with the applicant the original or a copy of all sales proposals used for presentation to the applicant.

(d) Have the applicant acknowledge receipt of the completed information statement and the notice to applicant regarding replacement of life insurance.

(e) Submit with the application to the insurer a copy of any sales proposal used, the completed information statement, and the name of each insurer which issued any life insurance proposed to be replaced.

(4) Each agent who uses a sales proposal when conserving existing life insurance shall do both of the following:

(a) Leave with the applicant the original or a copy of all sales proposals used in the conservation effort.

(b) Submit to the existing insurer a copy of all sales proposals used in the conservation effort.

Notes

Mich. Admin. Code R. 500.602

1979 AC; 1984 AACS