Utah Admin. Code R590-93-6 - Duties of the Existing Insurer

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

(1) retain each replacement notification 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 the existing insurer's state of domicile, whichever is later;

(2) within five business days of receiving a replacement notification, notify the policy or contract holder of the right to receive information regarding the existing policy or contract values including an in-force illustration or a policy summary if an in-force illustration cannot be produced;

(3) provide the policy or contract information in Subsection (2) within five business days of receipt of the request from the policy or contract holder; and

(4) upon receipt of a request to borrow, surrender, or withdraw any policy values, send a notice advising the policyholder 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.

(a) The notice shall be sent directly to the policyholder if the check is sent to anyone other than the policyholder.

(b) In the case of consecutive automatic premium loans, the insurer is only required to send the notice at the time of the first loan.

Notes

Utah Admin. Code R590-93-6

Amended by Utah State Bulletin Number 2022-16, effective 8/8/2022