Purpose and Scope, Requirements

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agent and Agency Services

RULE NO.: RULE TITLE:

69B-151.201 Purpose and Scope

69B-151.202 Requirements

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 44 No. 28, February 9, 2018 issue of the Florida Administrative Register.

69B-151.201 Purpose and Scope.

(1) The purpose of Rules 69B-151.201 and 69B-151.202, F.A.C., is to implement the provisions of paragraph 626.9541(1)(aa), F.S., with respect to churning. Rules 69B-151.201 and 69B-151.202, F.A.C., and Form OIR-D0-1180, Policy Disclosure Form and Instructions, which is incorporated by reference in Rule 69O-151.203, F.A.C., apply to all types of policies and annuity contracts which include a policy value feature, irrespective of the marketing method by which such policies or annuity contracts are sold.

Rulemaking Authority 624.308(1) FS Law Implemented 626.016(3), 626.9541(1)(aa) FS History–New 2-19-96, Formerly 4-151.201, Amended __________.

 

69B-151.202 Policy Disclosure Requirements.

(1)(a) Forms required to Form OIR-D0-1180 shall be completed by the insurer by or its licensed and appointed agent are to be and provided to the applicant prior to or contemporaneous with the time the applicant signs any application for the purchase of an additional life insurance policy or annuity contract to be funded through the use of values accessed in an existing and in-force policy with that same insurer.

(b) The agent is responsible for accurately completing any form required Form OIR-D0-1180 shall be completed for each existing and in-force policy to be utilized as a funding source for the purchase of additional insurance contract(s). Any required replacement and sales forms must also be completed. One copy of any form completed as part of the transaction Form OIR-D0-1180 is to be delivered to the policyowner, one copy is to be maintained by the agent, and one copy is to must be sent to maintained by the insurer.

(b) If there is a material change in the information originally disclosed to the policyowner on Form OIR-D0-1180 as a result of the underwriting and policy issuance process, an insurer may cause an amended Form OIR-D0-1180 to be reissued, delivered and executed by the agent or corporate officer and the policyowner, and such amended Form OIR-D0-1180 shall constitute the required disclosure under this rule. An insurer must maintain any and all amended versions of Form OIR-D0-1180 in accordance with this rule.

(2) A licensed and appointed agent may reprint Form OIR-D0-1180 in its adopted format; however, reprints shall not be in a typesize smaller than the format adopted by the Office of Insurance Regulation.

(2)(3) Policy loan request forms, surrender value request forms, dividend withdrawal request forms, or any other applicable service forms that are necessary to access the funds to be used as a funding source for the payment of premiums for the additional insurance policy shall be completed and executed in their entirety at the time of new policy application and after presentation of the completed replacement forms of the insurer and any policy comparison information Form OIR-D0-1180.

Rulemaking Authority 624.308(1) FS Law Implemented 626.016(3), 626.9541(1)(aa) FS History–New 2-19-96, Formerly 4-151.202, Amended __________.