§431:10D-507  Duties of insurers with
respect to direct-response solicitations.  (a)  In the case of an
application that is initiated as a result of 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 in
a form approved by the commissioner, which shall state the following:



"NOTICE
REGARDING REPLACEMENT



REPLACING YOUR
LIFE INSURANCE POLICY OR ANNUITY



Are you thinking about buying a new life
insurance policy or annuity and discontinuing or changing an existing one?  If
you are, your decision could be a good one or a mistake.  You will not know for
sure unless you make a careful comparison of your existing benefits and the
proposed policy or contract's benefits.



Make sure you understand the facts.  You should
ask the company or producer that sold you your existing policy or contract to
give you information about it.



Hear both sides before you decide.  This way
you can be sure you are making a decision that is in your best interest."



(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)  Provide to applicants or prospective applicants
with the policy or contract a notice, in a form similar to that required by
section 431:10D-503(b).  In these instances the insurer may delete the
references to the producer, including the producer's signature, without having
to obtain approval of the form from the commissioner.  The insurer's obligation
to obtain the applicant's signature shall be satisfied if it can demonstrate
that it has made a diligent effort to secure a signed copy of the notice
referred to in this paragraph.  The requirement to make a diligent effort shall
be deemed satisfied if the insurer includes in the mailing a self-addressed
postage prepaid envelope with instructions for the return of the signed notice
referred to in this section; and



(2)  Comply with the requirements of section
431:10D-505(a)(2), if the applicant furnishes the names of the existing
insurers, and the requirements of sections 431:10D-505(a)(3),
431:10D-505(a)(4), and 431:10D-505(b). [L 2000, c 252, pt of §3; am L 2003, c
212, §91]