(1) In the case of an application that is
initiated as a result of a direct response solicitation, the insurer shall
require, with or as part of each completed application for a policy or
contract, a statement asking whether the applicant, by applying for the
proposed policy or contract, intends to replace, discontinue or change an
existing policy or contract. If the applicant indicates a replacement or change
is not intended or if the applicant fails to respond to the statement, the
insurer shall send the applicant, with the policy or contract, a notice
regarding replacement in Appendix B, or other substantially similar form
approved by the commissioner.
(2) If the insurer has proposed the replacement or if the applicant
indicates a replacement is intended and the insurer continues with the
replacement, the insurer shall:
(a) provide to applicants or prospective applicants with the policy
or contract a notice, as described in Appendix C, or other substantially
similar form approved by the commissioner.
In these instances the insurer may delete the references to the
producer, including the producer's signature, and references not applicable to
the product being sold or replaced, without having to obtain approval of the
form from the commissioner. The
insurer's obligation to obtain the applicant's signature shall be satisfied if
it can demonstrate that it has made a diligent effort to secure a signed copy
of the notice referred to in this rule.
The requirement to make a diligent effort shall be deemed satisfied if
the insurer includes in the mailing a self-addressed postage prepaid envelope
with instructions for the return of the signed notice referred to in this rule;
(b) comply with the requirements of ARM 6.6.306(1) (b) , if the
applicant furnishes the names of the existing insurers, and the requirements of
ARM 6.6.306(1) (c) , (1) (d) and (2) .