Oklahoma § 36-4034 - Application for insurance - Statement required Replacement policy

§ 36-4034. Application for insurance - Statement required Replacement policy

A. Every insurer operating in this state shall inform its

agents of the provisions of this section.

B. Every agent shall secure with or as a part of each

application for insurance a statement as to whether the new

insurance policy or annuity policy will replace an existing

insurance policy or annuity policy on the same life.

C. The insurer shall review each statement prior to commencing

any underwriting. The review shall occur not later than five (5)

days after receipt of the application by the insurer to determine if

the policy is a replacement policy. If the insurer determines that

the policy is a replacement policy and if the agent has not secured

and forwarded the documents required by the provisions of subsection

D of this section to the insurer, the insurer shall cause the agent

to secure and forward said documents.

D. If a policy is a replacement policy, the agent shall secure

and forward to the insurer with each application the following:

1. A completed notice as provided for in Section 5 of the Life

Insurance and Annuity Policyholders Protection Act; and

2. A signed statement as provided for in Section 6 of the Life

Insurance and Annuity Policyholders Protection Act. If the

applicant declines to sign the statement, the agent shall furnish to

the insurer a written statement to that effect, signed by the agent

which shall be in addition to the signed agent's certification; and

3. Copies of the sales material prepared by the agent. If the

material is not substantially correct as determined by the insurer,

the insurer shall delay processing the application until corrected

information has been presented to and acknowledged by the applicant.

E. If the statement provided for in Section 6 of the Life Insurance

and Annuity Policyholders Protection Act is not received by the

insurer with the application or if the statement is received

unsigned, it shall be presumed by the insurer that the applicant

desires that the transaction be confidential and the replacing

insurer shall not notify the replaced insurer. If the applicant

signs the statement indicating that the replaced insurer be

notified, then the replacing insurer shall send a written

notification of the replacement to the home office of each replaced

insurer within five (5) days of receipt of the application.

Notification shall include the name of the applicant, the name of

the insured, the number of the policy being replaced, the generic

name and the face amount of the replacing policy, and the legal name

of the insurers.

F. The replacing insurer shall maintain copies of the notice,

statement, and notifications to the replaced insurers for at least

Oklahoma Statutes - Title 36. Insurance

three (3) years. Said copies shall be indexed so as to be readily

available for review by the Insurance Commissioner or his designee.

G. The insurer shall guarantee the policyholder at least a

twenty-day right to return the policy after delivery for a full

refund of premium. The insurer shall provide prominent written

notice informing the policyholder of this right. Said notice shall

be attached to, or as part of, the first page of the policy.

H. If only an insurer is involved with the replacement of a

life insurance policy or an annuity policy of residents of this

state, the requirements provided for in this section, where

applicable, shall be followed.

Added by Laws 1983, c. 80, § 4, eff. Nov. 1, 1983. Added by Laws

1983, c. 80, § 4, eff. Nov. 1, 1983.