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Arizona Revised Statutes Title 20. Insurance § 20-1241.08. Violations;  penalties;  intent

Current as of March 08, 2022 | Updated by FindLaw Staff

A. Any person who does not comply with the applicable requirements of this article is subject to penalties prescribed under §§ 20-220, 20-295 and 20-456.  Violations include:

1. Any deceptive or misleading information set forth in sales material.

2. When completing an application, failing to ask the applicant the pertinent questions regarding the possibility of financing or replacement.

3. The intentional incorrect recording of an answer.

4. Advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer.

5. Advising a policy or contract owner to write directly to the company in such a way as to attempt to obscure the identity of the replacing insurance producer or company.

B. A policy or contract owner may replace existing life insurance or annuities after indicating in or as part of an application for new coverage that replacement is not intended.  A pattern of such action by a policy or contract owner who buys new coverage from the same producer is deemed prima facie evidence of the insurance producer's knowledge that replacement was intended in connection with the transaction and of the insurance producer's intent to violate this article.

C. If the requirements of this article have not been met, the replacing insurer shall provide the policy owner an in-force illustration, if available, a policy summary for the replacement policy or the available disclosure document for the replacement contract and the appropriate notice regarding replacements prescribed in § 20-1241.03.

D. The director may impose the following penalties for a violation of this article either separately or in combination:

1. Revocation or suspension of an insurance producer's or company's license.

2. Civil monetary penalties.

3. Forfeiture of any commissions or compensation paid to an insurance producer as a result of the transaction in connection with which the violations occurred.

4. If the director has determined that the violations were material to the sale, the insurer may be required to make restitution, restoration of policy or contract values and interest at the maximum lawful rate on the amount refunded in cash.

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Cite this article: FindLaw.com - Arizona Revised Statutes Title 20. Insurance § 20-1241.08. Violations;  penalties;  intent - last updated March 08, 2022 | https://codes.findlaw.com/az/title-20-insurance/az-rev-st-sect-20-1241-08/

Read this complete Arizona Revised Statutes Title 20. Insurance § 20-1241.08. Violations;  penalties;  intent on Westlaw

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