DEPARTMENT OF INSURANCE
Office of Legal and Special Projects
GENERAL NOTICE
1204 Replacement of Life Insurance
*Please note that the following regulation was adopted prior to the effective date of the current Administrative Procedures Act. The following is presented for informational purposes only.
Background: Title 18 of the Delaware Administrative Code governs Insurance matters. Regulation 1204 Replacement of Life Insurance was originally promulgated as Regulation No. 30 effective July 1, 1981, and later amended effective April 15, 1984, as described in Bulletin No. 84-5 (June 1, 1984). At that time, the Notice To Applicant Regarding Replacement of Life Insurance was an addendum to the regulation (referenced internally in the regulation as Exhibit A). This regulation has not been amended since 1984. For unknown reasons, Exhibit A was never incorporated into the Administrative Code during the period of transition in the latter part of the 1990s to the current APA system. Therefore, this notice serves to announce that Exhibit A to the regulations governing the Replacement of Life Insurance will be added to Title 18 of the Administrative Code as an addendum to Section 1204. Exhibit A is currently "hot linked" in the online version of this regulation.
Exhibit A. Delaware Insurance Regulation 1204 (Formerly Regulation 30)
NOTICE TO APPLICANT REGARDING REPLACEMENT OF LIFE INSURANCE
It is in your best interest to get all the facts before making a decision. Make sure you fully understand the proposed new policy and your existing insurance. New policies may contain provisions which limit benefits during the initial period of the contract, in particular, the suicide and incontestable clauses.
To assist you in evaluating the proposed and the existing insurance, Delaware Insurance Regulation 1204 (Formerly Regulation 30) requires that the insurer advising or recommending replacement:
Provide the consumer, not later than the date the policy or contract is delivered, with a concise summary of the policy or contract to be issued.
Allow a twenty-day period following the delivery of the policy during which time the consumer may surrender the new policy for a full refund.
Advise the present insurance company(s) of the pending replacement.
This same regulation requires your present insurer to provide, on your request, a similar summary describing your present insurance. This information will be provided if you request it using the form below.
Amendments dated June 1, 1984 by Bulletin No. 84-5 to the third and fourth paragraphs of Exhibit A: Prior to the amendment as described in Bulletin No. 84-5, the third paragraph read: "Provide the consumer with a concise summary of the policy it proposes to issue".
Prior to the amendment as described in Bulletin No. 84-5 the fourth paragraph read:
"Allow a twenty-day period for the issue of the proposed policy during which time the consumer may surrender the new policy for a full refund."
(Form appears on the next following page)
INFORMATION ON PRESENT POLICIES
Company Name Policy Number Name of Insured Summary Requested
(mark yes or no)
________________ ________________ ________________ ________________
________________ ________________ ________________ ________________
________________ ________________ ________________ ________________
(continue on reverse as required)
IT IS SELDOM WISE TO TERMINATE YOUR EXISTING POLICY UNTIL YOUR NEW POLICY HAS BEEN ISSUED AND YOU HAVE EXAMINED IT AND FOUND IT TO BE ACCEPTABLE.
I have read this notice and received a copy of it.
__________________________________________________ _____________________
Applicant's signature Date
__________________________________________________ _____________________
Agent's signature* Date*
Agent's name and address (printed)* Company Name*
__________________________________________________ ______________
Delaware Form R (REG 30) 3/15/84
*Direct Response Insurers may Omit Items marked by Asterisk
