Attachment to K.A.R. 40-2-12

 

 

Life Insurance Replacement (1979 Model)

 

EXHIBIT A

 

(To be used where the existing and proposed policies are written by different companies)

 

(Name, address and telephone number of the insurance company)

 

IMPORTANT NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE

 

Our agent is recommending to you that you purchase a life insurance policy from us.  In connection with this purchase, you have indicated either as a result of his recommendation or at your own initiative, that you may terminate or change your existing policy issued by another insurance company or that you may obtain a loan from that company against your policy to pay premiums on the proposed policy.  Any of these actions is a replacement of life insurance.  This notice must be given to you.  Please read this notice.

 

Whether it is to your advantage to replace your existing insurance coverage, only you can decide.  It is in your best interest, however, to have adequate information before a decision to replace your present coverage becomes final so that you may understand the essential features of the proposed policy and of your existing insurance coverage.

 

To this end, we are required to give you a Policy Summary including complete information on the proposed policy no later than when that policy is delivered to you.  In addition, we are required to notify the insurance company that issued your existing policy.  That company may then furnish you with additional information concerning your existing policy.  You may want to contact that company or its agent for further information and advice or discuss your purchase with other advisors.  The information you receive will be of value to you in reaching a final decision.

 

If either the proposed policy or the existing insurance you intend to replace is a participating policy, you should be aware that dividends may materially reduce the cost of insurance and are an important factor to consider.  Dividends, however, are not guaranteed.

 

You should also recognize that a policy which has been in existence for a period of time may have certain advantages to you over a new policy.  If the policy coverages are basically similar, the premiums for a new policy may be higher because rates increase as your age increases.

 

Under your existing policy, the period of time during which the issuing company could contest the policy because of a material misstatement or omission on your application, or deny coverage for death caused by suicide, may have expired or may expire earlier than it will under the proposed policy.  Your existing policy may have options which are not available under the policy being proposed to you or may not come into effect under the proposed policy until a later time during your life.  Also, your proposed policy’s cash values and dividends, if any, may grow slower initially because the company will incur the cost of issuing your new policy.  On the other hand, the proposed policy may offer advantages which are more important to you.

 

If you are considering borrowing against your existing policy to pay the premiums on the proposed policy, you should understand that in the event of your death, the amount of any unpaid loan, including interest, will be deducted from the benefits of your existing policy thereby reducing your total insurance coverage.

 

After we have received your application and notified the other insurance company you will have twenty days from the date the proposed policy is delivered to you to cancel the policy issued on your application and receive back all payments you made to us.

 

*****

(Alternate paragraph of 20-day money-back guarantee is not provided.)

 

We are required by state regulation to delay the issuance of the policy for which you are making application for twenty days from the date on which we send your existing insurer notification that their policy will be replaced.

 

*****

 

CAUTION

 

If, after studying the information made available to you, you decide to replace the existing life insurance with our life insurance policy, you are urged not to take action to terminate or alter your existing life insurance coverage until after you have been issued the new policy, examined it and have found it to be acceptable to you.  If you should terminate or otherwise materially alter your existing coverage and fail to qualify for the life insurance for which you have applied, you may find yourself unable to purchase other life insurance or able to purchase it only at substantially higher rates.

 

I have received and read a copy of this Replacement Notice.

 

(Signed) ________________________________  Date _____________

 

 

EXHIBIT B

 

(To be used where the existing and proposed policies are written by the same company.)

 

(Name, address and telephone number of the insurance company)

 

IMPORTANT NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE

 

Our agent is recommending that you purchase a life insurance policy from us.  In connection with this purchase, you have indicated either as a result of his recommendation or at your own initiative, that you may terminate or change your existing policy issued by our company or that you may obtain a loan from our company against your existing policy to pay premiums on the proposed policy.  Any of these actions is a replacement of life insurance.  This notice must be given to you, along with a Comparative Information Form which includes preliminary information comparing the proposed policy with your existing policy to be replaced.  Please read this notice and the Comparative Information Form carefully.

 

Whether it is to your advantage to replace your existing insurance coverage, only you can decide.  It is in your best interest, however, to have adequate information before a decision to replace your present coverage becomes final so that you may understand the essential features of the proposed policy and of your existing insurance coverage.

 

To this end, we are required to give you a Policy Summary including complete information on the proposed policy no later than when the policy is delivered to you.  In addition, we will, at your request, furnish you additional information concerning your existing policy.  You may want to discuss your purchase with other advisors.  The information you receive will be of value to you in reaching a final decision.

 

If either the proposed policy or the existing insurance you intend to replace is a participating policy you should be aware that dividends may materially reduce the cost of insurance and are an important factor to consider.  Dividends, however, are not guaranteed.

 

You should also recognize that a policy which has been in existence for a period of time may have certain advantages to you over a new policy.  If the policy coverages are basically similar, the premiums for a new policy may be higher because rates increase as your age increases.  Under your existing policy, the period of time during which our company could contest the policy because of a material misstatement or omission on your application, or deny coverage for death caused by suicide, my have expired or may expire earlier than it will under the proposed policy.  You existing policy may have options which are not available under the policy being proposed to you or may not come into effect under the proposed policy until a later time during your life.  Also, your proposed policy’s cash values and dividends, if any, may grow slower initially because the company will incur the cost of issuing your new policy.  On the other hand, the proposed policy may offer advantages which are more important to you.

 

If you are considering borrowing against your existing policy to pay the premiums on the proposed policy, you should understand that in the event of your death, the amount of any unpaid loan, including unpaid interest, will be deducted from the benefits of your existing policy thereby reducing your total insurance coverage.

 

*****

(Additional paragraph if twenty-day money-backed guarantee is provided.)

 

After we have issued your policy, you will have twenty days from the date the new policy is delivered to you to cancel the policy issued on your application and receive back all payments you made to us.

 

*****

 

CAUTION

 

If, after studying the information made available to you, you do decide to replace the existing life insurance with our company with a new life insurance policy issued by our company, you are urged not to take action to terminate or alter your existing life insurance coverage until after you have been issued the new policy, examined it and have found it acceptable to you.  If you should terminate or otherwise materially alter your existing coverage and fail to qualify for the life insurance for which you have applied, you may find yourself unable to purchase other life insurance or able to purchase it only at substantially higher rates.

 

I have received and read a copy of this Replacement Notice.

 

(Signed) _____________________________ Date _______________

 

 

EXHIBIT C

 

(Name, address and telephone number of the insurance company)

 

IMPORTANT NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE

 

You have indicated that you intend to replace an existing life insurance policy or policies in connection with the purchase of our life insurance policy.  As a result, we are required to send you this notice.  Please read it carefully.

 

Whether it is to your advantage to replace your existing insurance coverage, only you can decide.  It is in your best interest, however, to have adequate information before a decision to replace your present coverage becomes final so that you may understand the essential features of the proposed policy and your existing insurance coverage.

 

You may want to contact your existing life insurance company or its agent for additional information and advice or discuss your purchase with other advisors. The information you receive should be of value to you in reaching a final decision.

 

If either the proposed policy or the existing insurance you intend to replace is a participating policy, you should be aware that dividends may materially reduce the cost of insurance and are an important factor to consider.  Dividends, however, are not guaranteed.

 

You should recognize that a policy which has been in existence for a period of time may have certain advantages to you over a new policy.  If the policy coverages are basically similar, the premiums for a new policy may be higher because rates increase as your age increases.  Under your existing policy, the period of time during which the issuing company could (contest the policy because of a material misrepresentation or omission concerning the medical information requested in your application, or)* deny coverage for death caused by suicide, may have expired or may expire earlier than it will under the proposed policy.

 

Your existing policy may have options which are not available under the policy being proposed to you or may not come into effect under the proposed policy until a later time during your life.  Also, your proposed policy’s cash values and dividends, if any, may grow slower initially because the company will incur the cost of issuing your new policy.  On the other hand, the proposed policy may offer advantages which are more important to you.

 

If you are considering borrowing against your existing policy to pay the premiums on the proposed policy, you should understand that in the event of your death, the amount of any unpaid loan, including unpaid interest, will be deducted from the benefits of your existing policy thereby reducing your total insurance coverage.

 

*****

 

(Additional paragraph if direct-response insurer’s solicitation proposes replacement, and a twenty-day money-back guarantee is provided by the insurer.)

 

After we have issued your policy, you will have twenty days from the date the new policy is received by you to notify us you are canceling the policy issued on your application and you will receive back all payments you made to us.

 

*****

 

You are urged not to take action to terminate or alter your existing life insurance coverage until you have been issued the new policy, examined it and have found it acceptable to you.