This text of Texas § 1114.053 (DUTIES OF REPLACING INSURERS THAT USE AGENTS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Sec. 1114.053. DUTIES OF REPLACING INSURERS THAT USE AGENTS.
(a)If a transaction under this chapter involves a replacement, the replacing insurer shall comply with this section.
(b)The replacing insurer shall verify that the required forms are received and are in compliance with this chapter.
(c)The replacing insurer shall:
(1)notify any existing insurer that may be affected by the proposed replacement not later than the fifth business day after:
(A)the date of receipt of a completed application indicating replacement; or
(B)the date that replacement is identified if it is not indicated on the application; and
(2)mail a copy of the available illustration or policy summary for the proposed policy or available disclosure document for the proposed contract to the existing insurer not l
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Sec. 1114.053. DUTIES OF REPLACING INSURERS THAT USE AGENTS. (a) If a transaction under this chapter involves a replacement, the replacing insurer shall comply with this section.
(b) The replacing insurer shall verify that the required forms are received and are in compliance with this chapter.
(c) The replacing insurer shall:
(1) notify any existing insurer that may be affected by the proposed replacement not later than the fifth business day after:
(A) the date of receipt of a completed application indicating replacement; or
(B) the date that replacement is identified if it is not indicated on the application; and
(2) mail a copy of the available illustration or policy summary for the proposed policy or available disclosure document for the proposed contract to the existing insurer not later than the fifth business day after the date of a request from the existing insurer.
(d) The replacing insurer must be able to produce copies of the notification regarding replacement required by Section 1114.051 (d), indexed by agent, until the later of:
(1) the fifth anniversary of the date of the notification; or
(2) the date of the replacing insurer's next regular examination by the insurance regulatory authority of the insurer's state of domicile.
(e) The replacing insurer shall provide to the policy or contract owner notice of the owner's right to return the policy or contract within 30 days of the delivery of the policy or contract and to receive an unconditional full refund of all premiums or considerations paid on the policy or contract, including any policy fees or charges or, in the case of a variable or market value adjustment policy or contract, a payment of the cash surrender value provided under the policy or contract plus the fees and other charges deducted from the gross premiums or considerations or imposed under the policy or contract. The notice may be combined with other notices required under this chapter in accordance with rules of the commissioner.
(f) In transactions in which the replacing insurer and the existing insurer are the same or are subsidiaries or affiliates under common ownership or control, the replacing insurer shall allow credit for the period that has elapsed under the replaced policy's or contract's incontestability and suicide period up to the face amount of the existing policy or contract. With regard to financed purchases, the credit may be limited to the amount that the face amount of the existing policy is reduced by the use of existing policy values to fund the new policy or contract.
(g) If an insurer prohibits the use of sales material other than that approved by the insurer, as an alternative to the requirements under Section 1114.051 (g), the insurer shall:
(1) require with each application a statement signed by the agent that:
(A) represents that the agent used only insurer-approved sales material; and
(B) states that copies of all sales material were left with the applicant in accordance with Section 1114.051 (f);
(2) not later than the 10th day after the date of issuance of the policy or contract:
(A) notify the applicant by sending a letter, or by verbal communication with the applicant by a person whose duties are separate from the marketing area of the insurer, that the agent has represented that copies of all sales material have been left with the applicant in accordance with Section 1114.051 (f);
(B) provide the applicant with a toll-free telephone number to contact the insurer's personnel involved in the compliance function if copies of all sales material have not been left with the applicant in accordance with Section 1114.051 (f); and
(C) stress the importance of retaining copies of the sales material for future reference; and
(3) be able to produce a copy of the letter or other verification in the policy file until the fifth anniversary of the date of termination or expiration of the policy or contract.