OAR 836-080-0014: Duties of Agent

(1) An insurance producer who initiates an application shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the insurance producer as to whether the applicant has existing policies or contracts and, at the option of the insurer, as to whether the applicant is replacing any of the existing policies or contracts. If the first question is asked alone and the answer is "no," or if both questions are asked and the answer to the optional question is "no," the insurance producer’s duties with respect to replacement are complete, except as provided in section (2) of this section. (2) If the applicant answered "yes" to the question whether the applicant has existing coverage referred to in section (1) of this rule, and the question is asked alone, or if both questions are asked and the answer is "yes" to both, the insurance producer shall present and read to the applicant, not later than at the time of taking the application, a notice regarding replacements in the form as described in Appendix A to this rule or other substantially similar form approved by the Director. Approval is not required, however, when amendments to the notice are limited to the omission of references not applicable to the product being sold or replaced. The notice shall be signed by both the applicant and the insurance producer attesting that the notice has been read aloud by the insurance producer or that the applicant did not wish the notice to be read aloud (in which case the insurance producer need not have read the notice aloud) and left with the applicant. (3) The notice under section (2) of this rule shall list all life insurance policies or annuities proposed to be replaced, properly identified by name of insurer, the insured or annuitant, and policy or contract number if available; and shall include a statement as to whether each policy or contract will be replaced or whether a policy will be used as a source of financing for the new policy or contract. If a policy or contract number has not been issued by the existing insurer, alternative identification, such as an application or receipt number, shall be listed. (4) In connection with a replacement transaction an insurance producer shall leave with the applicant at the time an application for a new policy or contract is completed the original or a copy of all sales material. Electronically presented sales material shall be provided to the policy or contract owner in printed form not later than at the time of policy or contract delivery. (5) Except as provided in OAR 836-080-0029(3), in connection with a replacement transaction an insurance producer shall submit to the insurer to which an application for a policy or contract is presented, a copy of each document required by this rule, a statement identifying any preprinted or electronically presented insurer-approved sales materials used, and copies of any individualized sales materials, including any illustrations related to the specific policy or contract purchased. [ED. NOTE: Appendices referenced are available from the agency.]