Arizona Laws 20-1241.03. Duties of insurance producers
A. An insurance producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the insurance producer as to whether the applicant has an existing policy or contract.
Terms Used In Arizona Laws 20-1241.03
- Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means a contract for the purchase of an annuity. See Arizona Laws 20-1241
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- replacement: means a transaction in which a new policy or contract is to be purchased and it is known or should be known to the proposing insurance producer, or to the proposing insurer if there is no insurance producer, that by reason of the transaction an existing policy or contract has been or is to be:
(a) Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated. See Arizona Laws 20-1241
- Sales material: means a sales illustration and any other written, printed or electronically presented information that is created, completed or provided by an insurer or insurance producer, that is used in the presentation to the policy or contract owner and that is related to the policy or contract purchased. See Arizona Laws 20-1241
B. If the answer is "no" to the question under subsection A of this section regarding existing coverage, the insurance producer has no further replacement duties.
C. If the answer is "yes" to the question under subsection A of this section regarding existing coverage, the insurance producer shall present and read to the applicant, not later than the time of taking the application, a notice regarding replacements that is in a form that the director has approved or prescribed by rule.
D. The applicant and the insurance producer shall sign the notice required under subsection C of this section. The insurance producer shall leave the signed notice with the applicant. If the notice is presented electronically, the insurer shall send the applicant a copy of the notice within three business days after the application is submitted to the insurer. In the notice the insurance producer and the applicant shall attest that the insurance producer either read the notice aloud or that the applicant did not wish the notice to be read aloud, in which case the producer need not have read the notice aloud.
E. The notice prescribed in subsection C of this section shall:
1. Identify each policy and contract proposed to be replaced by:
(a) Name of the insurer.
(b) Name of the insured or annuitant.
(c) Policy or contract number if available.
(d) Application or receipt number if the policy or contract number is not available.
2. Include a statement as to whether each policy or contract will be replaced or whether a policy will be used as a source of financing for the new policy or contract.
F. If the application for a new policy or contract is completed in any replacement transaction, the insurance producer shall give the applicant the original or a copy of all sales material at the time of the application for the new policy or contract. The insurance producer or insurer shall provide the applicant with a printed copy of any electronically presented sales material not later than at the time of policy or contract delivery.
G. Except as provided in Section 20-1241.05, subsection G, in connection with any replacement transaction, an insurance producer shall submit to the insurer to which an application for a policy or contract is presented a copy of:
1. Each document required by this section.
2. A statement identifying any preprinted or electronically presented company approved sales materials used.
3. Any individualized sales materials, including any illustrations related to the specific policy or contract purchased.