20-1241.06. Duties of existing insurer
244 words·~1 min read·
/az/title-20/20-1241-06·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. An existing insurer shall comply with the following requirements for any replacement transaction:
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.