These companies are:

Additional information about life insurance companies can be found by reading insurance company rating services reports. Five major insurance rating co

Additional information about life insurance companies can be found by reading insurance company rating services reports. Five major insurance rating companies grade insurers on their financial health and ability to pay claims.

Specific requirements are imposed on agents and insurers when a life insurance policy or annuity replacement or change is proposed. Some of these rules are as follows:

1. The agent must leave with the applicant an original or copy of all printed materials used for the presentation to the applicant. CIC 10509.4. (b)(2)
2. The replacing insurer may request the existing insurer to furnish it with a payday loans South Dakota copy of the summaries or ledger statement, within five working days of the receipt of the request. CIC 10509.6
3. Every life insurer that uses an agent in a life insurance or annuity sale shall require with or as part of each completed application for life insurance or annuity, a statement signed by the agent as to whether he or she knows replacement is or may be involved in the transaction. CIC 10509.6. (a)
4. An agent or insurer may not recommend replacement or certain changes to a policy using materially inaccurate presentations or comparisons of an existing contract’s premiums and benefits or dividends and values, if any, or recommends that an insured 65 years of age or older purchase an unnecessary replacement annuity. CIC 10509.8.
5. A life insurer shall provide to all prospective insureds a buyer’s guide prior to accepting the applicant’s initial premium or premium deposit. However, if the policy for which application is made contains an unconditional refund provision of at least 10 days, the buyer’s guide shall be delivered with the policy or prior to delivery of the policy. CIC 1.
6. Every policy of individual life insurance shall have a notice stating that after receipt of the policy by the owner, the policy may be returned by the owner for cancellation by delivering it or mailing it to the insurer or to the agent through whom it was purchased. This period shall not be less than 10 days nor more than 30 days. CIC 10127.9. Senior citizens must be given a notice printed on or attached to the policy indicating a period of no less than 30 days for an individual life insurance and individual annuity contract after receipt of the policy by the owner, the policy may be returned by the owner for cancellation and a full refund. CIC 1. (a). Discuss the free look period with your agent or insurer before purchasing a life insurance policy. If the transaction involves a replacement policy the replacing insurer shall provide in its policy or in a separate written notice which is delivered with the policy that the applicant has a right to an unconditional refund of all premiums paid within a period of 30 days commencing from the date of delivery of the policy. CIC 10509.6. (d).

Beware of Any Agent Who.

• Suggests that using the cash value from your current policy to fund the premiums on a new policy offers a demonstrable advantage to you,
• Advises you not to speak to anyone from your current insurer about a policy replacement or change he/she is proposing,
• Asks you to sign incomplete or blank forms, or
• Speaks negatively about another agent or company.

Your best defense against an ill-advised replacementor change to your life insurance policy or annuity is knowledge. The more you know and understand about your current policy and the proposed new policy, as well as the company and the representative, the better equipped you will be to make the best decision. Remember, if you intend to replace or change an existing coverage, you should be sure that the agent selling the new policy has your best interests at heart, and bases the purchase recommendation on an appropriate needs analysis. Agents have a duty to inquire about your current coverage. Once on notice, the regulatory steps designed to protect you should occur.