Understanding Illinois' Definition Of Life Insurance Replacement

In Illinois, 'replacement' in the context of life insurance and annuities means any transaction in which new life insurance or a new annuity is purchased, and it is known or should be known to the proposing producer that by reason of the transaction, existing life insurance or annuities have been or will be converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values. The Illinois Administrative Code contains a section on life insurance and annuity replacement, which includes definitions of 'replacement' and 'replacing insurer'.

Replacement means any transaction in which new life insurance or a new annuity is purchased

In Illinois, 'replacement' means any transaction in which new life insurance or a new annuity is purchased and it is known or should be known to the proposing producer that by reason of the transaction, existing life insurance or annuities have been or will be converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture.

A replacement can occur when an existing insurance policy is changed or terminated and replaced with a new policy from a different insurer. The new insurer is known as the replacing insurer and the original insurer is known as the existing insurer. The Illinois Administrative Code outlines the duties of insurance producers, replacing insurers, and existing insurers in these circumstances.

If an insured wants to replace their policy with another policy provided by a different insurer, they must sign a Notice Regarding Replacement of Life Insurance or Annuity form, unless the new insurer is under the same ownership as the old insurer. This form is also known as a policy summary, which is a written statement describing the elements of the policy.

A replacement can also occur when a new life insurance policy is derived from a policy that was recently terminated.

Existing insurer means the insurance company whose policy is or will be changed or terminated

In Illinois, 'replacement' is defined as any transaction in which new life insurance or a new annuity is to be purchased and it is known or should be known to the proposing producer that by reason of the transaction, existing life insurance or annuities have been or will be converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture provisions. This can include a policy being reissued with a reduction in cash value.

The Illinois Administrative Code outlines the duties of the existing insurer in Section 917.80, which includes providing the insured with a written notice of replacement and a policy summary. The notice of replacement must include a description of the replacement transaction, the name of the replacing insurer, and the name of the insurance producer.

It is important to note that if an insured wants to replace their policy with another policy provided by a different insurer, they must sign a Notice Regarding Replacement of Life Insurance or Annuity form, unless the new insurer is under the same ownership as the old insurer.

Replacing insurer means the insurance company that issues a new policy which is a replacement of existing life insurance or annuity

In Illinois, a 'replacing insurer' is defined as an insurance company that issues a new policy which is a replacement of existing life insurance or annuity. This is part of the Illinois Administrative Code, Title 50, Part 917, which covers life insurance and annuity replacement.

A 'replacement' is a sale that results in existing insurance coverage that has been terminated in any way. It can also occur under other circumstances, such as when existing life insurance or annuities are converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value. For example, a policy is reissued with a reduction in cash value.

If an insured wants to replace their policy with another policy provided by a different insurer, they must sign a Notice Regarding Replacement of Life Insurance or Annuity form, unless the new insurer is under the same ownership as the old insurer.

The Illinois Administrative Code also defines an 'existing insurer' as the insurance company whose policy is or will be changed or terminated in the manner described within the definition of 'replacement'.

Existing life insurance means any life insurance or annuity in-force

Existing life insurance means any life insurance or annuity in force. This includes insurance under a binding or conditional receipt or an insurance policy that is within an unconditional refund period. However, it does not include life insurance obtained through the exercise of a dividend option.

In the context of Illinois life insurance replacement regulations, a replacement refers to any transaction in which new life insurance or a new annuity is purchased, resulting in the conversion of existing life insurance or annuities to reduced paid-up insurance, extended term insurance, or a reduction in value. When replacing a policy with a different insurer, the insured must sign a Notice Regarding Replacement of Life Insurance or Annuity form, unless the new insurer is under the same ownership as the previous one.

The Illinois Administrative Code outlines specific duties for insurance producers, replacing insurers, and existing insurers in the event of life insurance and annuity replacements. The code also provides exemptions and penalties for non-compliance with the regulations.

Insurance producer, for the purposes of this part, shall have the same meaning as insurance producer as defined in Section 500-10 of the Illinois Insurance Code

In Illinois, the term 'insurance producer' is defined in Section 500-10 of the Illinois Insurance Code. This definition applies to the state's life insurance replacement regulations.

Life insurance replacement in Illinois refers to any transaction in which new life insurance or a new annuity is purchased, and it is known or should be known to the proposing producer that, as a result of the transaction, existing life insurance or annuities have been or will be converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value.

A replacement can occur when an existing insurance policy is changed or terminated, and a new policy is issued as a replacement. For example, a policy may be reissued with a reduction in cash value. When an insured replaces their policy with another policy provided by a different insurer, they must sign a Notice Regarding Replacement of Life Insurance or Annuity form, unless the new insurer is under the same ownership as the old one.

The Illinois Administrative Code outlines the duties of insurance producers, replacing insurers, and existing insurers in the context of life insurance and annuity replacement.

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