§431:10D-507  Duties of insurers withrespect to direct-response solicitations.  (a)  In the case of anapplication that is initiated as a result of a direct-response solicitation,the insurer shall require, with or as part of each completed application for apolicy or contract, a statement asking whether the applicant, by applying forthe proposed policy or contract, intends to replace, discontinue, or change anexisting policy or contract.  If the applicant indicates a replacement orchange 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 ina form approved by the commissioner, which shall state the following:

"NOTICEREGARDING REPLACEMENT

REPLACING YOURLIFE INSURANCE POLICY OR ANNUITY

Are you thinking about buying a new lifeinsurance policy or annuity and discontinuing or changing an existing one?  Ifyou are, your decision could be a good one or a mistake.  You will not know forsure unless you make a careful comparison of your existing benefits and theproposed policy or contract's benefits.

Make sure you understand the facts.  You shouldask the company or producer that sold you your existing policy or contract togive you information about it.

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

(b)  If the insurer has proposed thereplacement or if the applicant indicates a replacement is intended and theinsurer continues with the replacement, the insurer shall:

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

(2)  Comply with the requirements of section431:10D-505(a)(2), if the applicant furnishes the names of the existinginsurers, 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, c212, §91]