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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 365. Insurance Department |
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Chapter 25. Other Licensees |
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Subchapter 3. Producers, Brokers, Limited Lines Producers and Vehicle Protection Product Warrantors |
SECTION 365:25-3-8. Inducement of lapse, surrender or cancellation of existing permanent life insurance coverages prohibited
Latest version.
- (a) Purpose. The purpose of this section is to set forth the regulations regarding comparisons of existing permanent life insurance policies with other policies and to require that all recommendations for replacement of existing permanent life insurance policies be constructive.(b) Inducement of lapse, surrender or cancellation of existing permanent life insurance coverages prohibited.(1) Replacement of policies. No person subject to the provisions of 36 O.S. §1201 et seq. (1981), shall indiscriminately advocate or recommend in any life insurance sales presentation or proposal that the prospect surrender or permit to lapse any existing permanent life insurance policies for the purpose of replacing such policies with other insurance, alone or in conjunction with some form of equity investment.(2) Comparison of policies. No person subject to the provisions of 36 O.S. §1201 et seq. (1981), shall directly or indirectly encourage any other person to surrender or permit to lapse any existing permanent life insurance policies for the purpose of inducing such other person to purchase other insurance, alone or in conjunction with some form on equity investment, by drawing a comparison between the benefits contained in such existing insurance program and the benefits which might accrue under some proposed substitute program of insurance or insurance and equity investments, unless such comparison be fully, completely, and accurately stated.(3) Written statement of comparison. Any comparison shall be in writing and in not less than duplicate copies, one of which shall be left with the prospect and the other of such copies shall be retained by the general agent of the person preparing the same for not less than three years. Such records shall be subject to examination by the Insurance Commissioner.(4) Recommendations for replacement shall be constructive. Sales presentation by life insurance producers shall in every instance be prospective and constructive. Destruction of existing programs of permanent insurance shall not be advocated directly or indirectly by any licensed life insurance producer to the detriment of the insured under such permanent plan of insurance.