N.J. Admin. Code § 11:4-2.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:4-2.4 - Duties of replacing insurers

(a) Where a replacement is involved in the transaction, the replacing insurer shall:

1. Verify that the required forms are received and are in compliance with this subchapter;

2. Ascertain that the sales material and illustrations used in the replacement meet the requirements of this subchapter and are complete and accurate for the proposed policy or contract;

3. Notify any other existing insurer that may be affected by the proposed replacement within five business days of receipt of a completed application indicating replacement and/or accompanying statement indicating replacement (or when the replacement is identified if not indicated on the application), and mail to the insurer a copy of the available illustration and/or policy summary for the proposed policy or available disclosure document for the proposed contract within five business days of a request from an existing insurer;

4. Be able to produce copies of the notifications regarding replacement required in 11:4-2.3(b), indexed by producer, for at least the immediately preceding five years or until the next regular examination by the Department, whichever is later; and

5. Provide to the policy or contract owner notice of the right to return the policy or contract within 30 days of the delivery and receive an unconditional full refund of all premiums or considerations paid on it, including any policy fees or charges or, in the case of a variable or market value adjustment policy or contract, a payment of the cash surrender value provided under the policy or contract plus the fees and other charges deducted from the gross premiums or considerations or imposed under such policy or contract. Such notice may be included in Appendix A or C.

(b) Where the replacing insurer is the same as or an affiliate of the existing insurer, the replacing insurer shall allow credit for the period of time that has elapsed under the replaced policy's or contract's incontestability and suicide period up to the face amount of the existing policy or contract. With regard to financed purchases, the credit may be limited to the amount by which the face amount of the existing policy is reduced by the use of existing policy values to fund the new policy or contract.

(c) Each insurer replacing a policy or contract shall maintain records in paper, photograph, microprocess, magnetic, mechanical or electronic media or by any process that accurately reproduces the actual document.

N.J. Admin. Code § 11:4-2.4

Repeal and New Rule, R.2004 d.414, effective 11/1/2004 (operative January 30, 2005).
See: 36 New Jersey Register 2147(a), 36 New Jersey Register 4930(a).
Section was "Duties of agent".