Arizona Laws 20-1241.06. Duties of existing insurer
A. An existing insurer shall comply with the following requirements for any replacement transaction:
Terms Used In Arizona Laws 20-1241.06
- 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
- Existing insurer: means the insurer whose policy or contract is or will be replaced. See Arizona Laws 20-1241
- Illustration: means a presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years. See Arizona Laws 20-1241
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Policy summary: means a description of a policy or contract that meets the requirements in Section 20-1241. See Arizona Laws 20-1241
- 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
- Replacing insurer: means the insurer that issues or proposes to issue a new policy or contract that replaces an existing policy or contract or is a financed purchase. See Arizona Laws 20-1241
- sent: means to deliver by United States mail, personal delivery or fax or by electronic means consistent with the requirements of section 20-239. See Arizona Laws 20-117
1. The insurer shall retain and be able to provide the director with all notifications received, indexed by replacing insurer, for at least five years or until the conclusion of its next examination by the insurance regulatory authority of its state of domicile, whichever is later.
2. Within five business days of receiving a replacement notice, the insurer shall send the policy or contract owner a letter advising the owner of the right to receive information about the existing policy or contract values including, if available, an in-force illustration or a policy summary if an in-force illustration cannot be produced. The insurer shall provide the policy or contract owner with this information within five business days of the receipt of a request from the policy or contract owner.
3. On receipt of a request to borrow, surrender or withdraw any policy values, the insurer shall send a notice advising the policy owner that a release of policy values may affect the guaranteed elements, nonguaranteed elements, face amount or surrender value of the policy from which the values are released.
B. The insurer shall send the notice required by subsection A, paragraph 3 separate from the check if the check is sent to anyone other than the policy owner. In the case of consecutive automatic premium loans, the insurer shall send the notice only at the time of the first loan.