NJ LAWS, RULES, 7 REGULATIONS PERTINENT TO LIFE ONLY

term of coverage for credit life insurance must be...

- at least 7 years when the credit life insurance is being placed on loans with a term of 8 to 15 years - for term in excess of 15 years, credit life insurance must be for a term of not less than 8 years

group life

- eligible groups: employer, debtor groups, labor union, credit union associations - coverage discontinuance: notice of discontinuance, automatic discontinuance for non-payment of premium (with notice), disability benefits must be extended beyond discontinuance of group coverage

in order to reinstate or renew a life insurance or annuity policy requires what?

- submit a completed application upon written request within 30 days - this time doesn't start until the insurer receives satisfactory evidence of the person's interest in the policy.

replacing insurers must perform the following duties:

- verify the required placement forms are received and are in compliance with the state regulations - notify any existing insurer within 5 business days that a replacement may be in order for an existing policy & mail a copy of the illustration or policy summary for the replacement policy - provide a policyowner notice of the right to return the policy within 30 days of the delivery & receive an unconditional full refund of all premiums (free look provision) - maintain copies of the notice regarding replacement and the comparative info form, policy summary, & all sales material for least 5 years or until the next regular examination by the Department of Banking & Insurance

Duties of the replacing producer

-Present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer. A copy must be left with the applicant. -Obtain a list of all existing life insurance and/or annuity policies to be replaced including policy numbers and the names of all companies being replaced. -Leave the applicant with the original or a copy of written or printed communications used for presentation to the applicant. -Submit to the replacing insurance company a copy of the replacement notice with the application.

how many days does the discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss

0 days

what is the min. age which an individual can purchase a life insurance policy or an annuity contract?

15 years old

if a life insurance or annuity policy requires a certain application for reinstatement or renewal, the insurer must supply the application upon written request within how many day?

30 days *these rules do not apply to group life insurance or group annuities

how long should all advertisements must be maintained on file by the insurer for?

5 years from their last use

REPLACEMENT

ANY TRANSACTION WHERE NEW LIFE INSURANCE OR NEW ANNUITY IS PURCHASED - AS A RESULT THE EXSITING LIFE INSURANCE OR ANNUITY HAS BEEN OR WILL BE ANY OF THE FOLLOWING

credit insurance

coverage written to insure the life of the debtor & pay off the balance of a loan in the vent of the death of the debtor - usually written as a decreasing term insurance - cannot pay out more than the balance of the debt - not allowed to have creditor requiring that a debtor buys insurance from a certain insurer

written notice of discontinuance

must be sent to the policyholder or other party responsible for paying premiums

any refund of premium due or any amount collected from the debtor for insurance must be refunded to the debtor or credit against the debt when?

no more than 60 days from the termination

replacing insurer

the company that issues the new policy

existing insurer

the company whose policy is being replaced

who is the creditor?

the owner and the beneficiary of the policy *although the premiums are generally paid by the borrower (or the debtor)

Are all advertisements the responsibility of the insurer?

yes

duties of replacing insurance company

• Require from the producers list of the applicants life insurance contracts to be replaced • A copy of the replacement notice provided by the applicant. • Send each existing insurance company a written communication advising of proposed replacement within the specified time frame which starts at the time the application is received in the replacing insurers home or admin office. • A policy summary or ledger statement containing policy data on the prosper life insurance or annuity must be included.