A. If a person applies for a policy or contract in response to a direct response solicitation, the insurer shall require, with or as part of each completed application for a policy or contract, a statement asking whether the applicant, by applying for the proposed policy or contract, intends to replace, discontinue or change an existing policy or contract. If the applicant indicates a replacement or change is not intended or if the applicant fails to respond to the statement, the insurer shall send the applicant, with the policy or contract, a notice that the director has approved or prescribed by rule.

Terms Used In Arizona Laws 20-1241.07

  • 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
  • Direct response solicitation: means a solicitation to purchase a policy or contract solely through mail, telephone, the internet or other mass communication media. See Arizona Laws 20-1241
  • Existing insurer: means the insurer whose policy or contract is or will be replaced. See Arizona Laws 20-1241
  • Existing policy or contract: means a policy or contract that is in force and includes a policy under a binding or conditional receipt and a policy or contract that is within an unconditional refund period. See Arizona Laws 20-1241
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • 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

B. If the insurer has proposed the replacement or if the applicant indicates a replacement is intended and the insurer continues with the replacement, the insurer shall:

1. Comply with the requirements of Section 20-1241.05, subsections C and D if the applicant furnishes the names of the existing insurer, and the requirements of Section 20-1241.05, subsections E and F.

2. With the policy or contract, provide the applicant or prospective applicant with a notice as required under Section 20-1241.05.

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