Rule 20:06:21:53.03 Suitability -- Response letter.
20:06:21:53.03. Suitability -- Response letter. If the
issuer determines that the applicant does not meet its financial suitability
standards, or if the applicant has declined to provide the information, the
issuer may reject the application. In the alternative, the issuer shall send
the applicant a response letter similar to Appendix G. However, if the
applicant has declined to provide financial information, the issuer may use
some other method to verify the applicant's intent. Either the applicant's returned
letter or a record of the alternative method of verification shall
be made part of the applicant's file. The return of the response letter
by an applicant indicating a desire to purchase the coverage,
does not constitute a defense for any producer for any violation of the
insurance laws and rules of this state.
The commission or
compensation, for the sale of a long-term care policy or certificate on which
the issuer has determined that the applicant does not meet its financial
suitability standards, shall be no greater than the renewal compensation.
The issuer shall report annually by
June 30 to the director the total number of applicants received from residents
of this state, the number of those who declined to provide information on the
personal worksheet, the number of applicants who did not meet the suitability
standards, and the number of those who chose to confirm after receiving a
28 SDR 157, effective May 19, 2002; 31 SDR 67, effective November 14, 2004.
General Authority: SDCL 58-17B-4.
Implemented: SDCL 58-17B-4.
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