20:06:13:35. Notice of replacement. Upon determining that a sale will involve replacement of Medicare supplement coverage, any issuer, other than a direct response issuer, or its agent, shall furnish the applicant, prior to issuance or delivery of the Medicare supplement policy or certificate, a notice regarding replacement of Medicare supplement coverage. One copy of the notice signed by the applicant and the agent, unless the coverage is sold without an agent, must be provided to the applicant and an additional signed copy must be retained by the issuer. A direct response issuer shall deliver to the applicant at the time of the issuance of the policy the notice regarding replacement of Medicare supplement coverage.
The notice required by this section is in Appendix C at the end of this chapter. Notice used by an issuer must be in substantially the same form and in no less than twelve-point type. For purposes of this section, "form" means the language, format, type size, type proportional spacing, bold character, and line spacing.
Unless the coverage is direct marketed, the agent must ask and record the answers to all questions on the forms.
Source: 8 SDR 174, effective July 1, 1982; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 143, effective March 29, 1989; 18 SDR 225, effective July 17, 1992; 23 SDR 236, effective July 13, 1997; 37 SDR 215, effective May 31, 2011; 42 SDR 52, effective October 13, 2015.
General Authority: SDCL 58-17A-2.
Law Implemented: SDCL 58-17A-2.
Note: A copy of the notice that meets the requirements of this section may be obtained by writing or calling the Division of Insurance, 124 South Euclid Avenue, 2nd Floor, Pierre, SD 57501 (605-773-3563) or writing NAIC, P.O. Box 38, Kansas City, MO 64183-0108.
