Section 20-1241.05 - Duties of replacing insurers that use insurance producersA. A replacing insurer shall comply with the requirements of this section for each replacement transaction.B. The insurer shall verify that it has received all required forms and that the forms comply with this article.C. The insurer shall notify any existing insurer that may be affected by the proposed replacement within five business days after the receipt of a completed application indicating replacement or, if not indicated on the application, when the replacement is identified, and send a copy of the available illustration or policy summary for the proposed policy or available disclosure document for the proposed contract within five business days after a request from an existing insurer.D. The insurer shall be able to produce copies of the notification regarding replacement required in section 20-1241.03, subsections C and D, indexed by the insurance producer, for at least five years or until the next regular examination by the insurance regulatory authority of its state of domicile, whichever is later.E. The insurer shall provide the policy or contract owner notice of the right to return the policy or contract within thirty days of delivery and receive an unconditional full refund of all premiums or consideration paid, 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 all fees and other charges deducted from the gross premiums or considerations or imposed under the policy or contract. The notice may be included in the notice required under section 20-1241.03, subsections C and D.F. If the replacing insurer and the existing insurer are the same or subsidiaries or affiliates under common ownership or control, the replacing insurer shall allow credit for the period of time that has elapsed under the replacement policy's or contract's incontestability and suicide period up to the face amount of the existing policy or contract. For financed purchases, the insurer may limit the credit to the amount that the face amount of the existing policy is reduced by the use of existing policy values to fund the new policy or contract.G. If an insurer prohibits the use of sales materials the insurer has not approved, the insurer, as an alternative to the requirements of section 20-1241.03, subsection G, may comply as follows: 1. The insurer shall require an insurance producer to submit a signed statement with each application stating that the insurance producer used only sales material that the insurer approved and that the insurance producer will provide copies to the applicant as required by section 20-1241.03, subsection F.2. Within ten days after the issuance of the policy or contract, the insurer shall: (a) Notify the applicant by letter or by verbal communication from a person whose duties are separate from the marketing area of the insurer that the insurance producer made the representation about leaving sales materials as described in paragraph 1 of this subsection.(b) Provide the applicant with a toll-free number to contact insurer personnel responsible for regulatory compliance if the insurance producer did not leave sales materials.(c) Advise the applicant that it is important to retain copies of the sales material for future reference.3. The insurer shall be able to produce a copy of the letter or other verification required by paragraph 2, subdivision (a) of this subsection for at least five years after the termination or expiration of the policy or contract.Amended by L. 2020, ch. 61,s. 10, eff. 8/25/2020.