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§ 510d. Notice of contractholder's right to examine annuity or pure endowment contracts

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 2. Insurance Companies (Refs & Annos)
Article IV. Life Insurance
(a) General Provisions Relating to Stock and Mutual Companies (Refs & Annos)
40 P.S. § 510d
§ 510d. Notice of contractholder's right to examine annuity or pure endowment contracts
Currentness
(a)(1) Except as provided in paragraphs (2) and (3), individual fixed dollar annuity or pure endowment contracts shall not be entered into in the Commonwealth of Pennsylvania unless they shall have prominently printed on the first page of such contract or attached thereto a notice stating in substance that the contractholder shall be permitted to return the contract within at least ten (10) days of its delivery and to have the stipulated payment or premium paid refunded if after examination of the contract, the contractholder is not satisfied with it for any reason.
(2) Individual fixed dollar annuity contracts which are offered as replacements for an existing annuity contract or life insurance policy with the same insurer or insurer group shall not be entered into in the Commonwealth of Pennsylvania unless they shall have prominently printed on the first page of such contract or attached thereto a notice stating in substance that the contractholder shall be permitted to return the contract within at least forty-five (45) days of its delivery and to have the premium refunded if after examination of the contract the contractholder is not satisfied with it for any reason.
(3) Individual fixed dollar annuity contracts which are offered as replacements for an existing annuity contract or life insurance policy with an insurer or insurer group other than the one which issued the original contract or policy shall not be entered into in the Commonwealth of Pennsylvania unless they shall have prominently printed on the first page of such contract or attached thereto a notice stating in substance that the contractholder shall be permitted to return the contract within at least twenty (20) days of its delivery and to have the premium refunded if after examination of the contract the contractholder is not satisfied with it for any reason.
(b)(1) Except as provided in paragraphs (2) and (3), individual variable annuity contracts shall not be entered into in the Commonwealth of Pennsylvania unless they shall have prominently printed on the first page of such contract or attached thereto a notice stating in substance that the contractholder shall be permitted to return the contract within at least ten (10) days of its delivery if after examination of the contract the contractholder is not satisfied with it for any reason, and the notice shall state that in such event the insurer shall pay to the contractholder an amount equal to any of the following:
(i) the stipulated payment or premiums paid;
(ii) the difference between:
(A) the premiums paid, including any contract fees or other charges and the amounts, if any, allocated to any separate accounts under the contract; and
(B) the cash value of the contract or, if the contract does not have a cash value, the reserve for the contract on the date of surrender attributable to the amounts so allocated; or
(iii) the greater of subparagraphs (i) or (ii).
(2) Individual variable annuity contracts which are offered as replacements for an existing annuity contract or life insurance policy with the same insurer or insurer group shall not be entered into in the Commonwealth of Pennsylvania unless they shall have prominently printed on the first page of such contract or attached thereto a notice stating in substance that the contractholder shall be permitted to return the contract within at least forty-five (45) days of its delivery if after examination of the contract the contractholder is not satisfied with it for any reason, and in such event the notice shall state that in such event the insurer shall pay to the contractholder an amount equal to any of the following:
(i) the stipulated payment or premium paid;
(ii) the difference between:
(A) the premiums paid, including any contract fees or other charges and the amounts, if any, allocated to any separate accounts under the contract; and
(B) the cash value of the contract or, if the contract does not have a cash value, the reserve for the contract on the date of surrender attributable to the amounts so allocated; or
(iii) the greater of subparagraph (i) or (ii).
(3) Individual variable annuity contracts which are offered as replacements for an existing annuity contract or life insurance policy with an insurer or insurer group other than the one which issued the original contract or policy shall not be entered into in the Commonwealth of Pennsylvania unless they shall have prominently printed on the first page of such contract or attached thereto a notice stating in substance that the contractholder shall be permitted to return the contract within at least twenty (20) days of its delivery if after examination of the contract the contractholder is not satisfied with it for any reason, and in such event the notice shall state that in such event the insurer shall pay to the contractholder an amount equal to any of the following:
(i) the stipulated payment or premium paid;
(ii) the difference between:
(A) the premiums paid, including any contract fees or other charges and the amounts, if any, allocated to any separate accounts under the contract; and
(B) the cash value of the contract or, if the contract does not have a cash value, the reserve for the contract on the date of surrender attributable to the amounts so allocated; or
(iii) the greater of subparagraph (i) or (ii).

Credits

1921, May 17, P.L. 682, § 410E, added 1981, Nov. 5, P.L. 325, No. 116, § 1, imd. effective. Amended 1996, Dec. 18, P.L. 1003, No. 154, § 2, effective in 60 days.
40 P.S. § 510d, PA ST 40 P.S. § 510d
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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