11 CRR-NY 51.7NY-CRR
11 CRR-NY 51.7
11 CRR-NY 51.7
51.7 Prohibited acts.
(a) No insurer or insurance agent or broker shall:
(1) make or give any deceptive or misleading information in the “Disclosure Statement” or in the sales material, including any proposal, used in the sale of the life insurance policy or annuity contract;
(2) in completing the application, fail to ask the applicant the pertinent questions relating to the probability of replacement;
(3) incorrectly record an answer;
(4) counsel an applicant to answer the questions with respect to replacement negatively in order to prevent notice to the insurer to be replaced; or
(5) counsel an applicant to write directly to the insurer in such a way as to attempt to bypass such insurer's agency representation or obscure the identity of the insurance agent or broker replacing the life insurance policy or annuity contract.
(b) No insurer, insurance agent, insurance broker, or any other licensee of this department, or any representative, officer or employee of an insurer, shall fail to comply with or engage in other practices that would prevent the orderly working of this Part in accomplishing its intended purpose in the protection of policyholders and contractholders. Any person failing to comply with this Part, or engaging in other practices that would prevent the orderly working of this Part, shall be subject to penalties under the Insurance Law, which may include monetary restitution, restoration of policies or contracts, removal of directors or officers, suspension or revocation of agent's, broker's or company's licenses and monetary fines.
(c) Although policyholders and contractholders have the right to replace existing life insurance policies or annuity contracts after having indicated in or as a part of an application for new coverage that such was not their intention, patterns of such action by policyholders or contractholders having the same insurance agent or broker shall be deemed prima facie evidence of the agent's or broker's knowledge that replacement was intended in connection with such transactions, and such patterns of action shall be deemed prima facie evidence of the agent's or broker's intent to violate this Part.
11 CRR-NY 51.7
Current through July 31, 2021
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