SECTION .0600 ‑ REPLACEMENT REGULATIONS

11 NCAC 12 .0601             PURPOSE and scope

The purpose of the rules in this Section are:

(1)           To regulate the activities of insurers and producers with respect to the replacement of existing life insurance and annuities.

(2)           To protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduct to be observed in replacement or financed purchase transactions that will:

(a)           assure that purchasers receive information with which a decision can be made in their own best interest;

(b)           reduce the opportunity for misrepresentation and incomplete disclosures; and

(c)           establish penalties for failure to comply with requirements of the rules in this section.

History Note:        Authority G.S. 58-2-40; 58-3-115; 58-58-1; 58-58-40;

Eff. October 1, 1985;

Amended Eff. August 1, 2004;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. May 1, 2018.