Section 26-A214. POLICY APPLICATIONS REJECTED BY LIFE INSURANCE COMPANIES

 

214.1If a life insurance policy application is rejected in whole or in part by the company which an agent represents, the agent may, if that company approves, undertake without additional license to have the desired policy written by another company. The statutory privilege of placing excess or rejected risks without an additional license shall not permit an agent to solicit business in the name of another company.

 

214.2The term "rejected" shall not include risks which are rejected as a class.

 

214.3For the purposes of §214.2, examples of excess or rejected risks are as follows:

 

(a)When, as a matter of company policy, insurance on a member of a class (such as military personnel) is limited to a certain amount and no consideration whatever in an individual case is given to an application for a larger amount, it cannot be said that the amount which the company will not write is excess; or

 

(b)When, as a matter of company policy, insurance for a class (such as military personnel) will not be written at standard rates and forms, or where a company does not write certain types of insurance as a matter of company policy, an application for an individual member of the class to be insured contrary to company policy is not to be considered as excess or rejected.

 

214.4For the purposes of this section, rejections shall involve consideration and may include a refusal to accept or receive.

 

214.5For the purposes of this section, the term "excess" is, that which passes the ordinary, reasonable, or required limit.

 

214.6For the purposes of this section, "excess or rejected business" means business which is submitted to a company in good faith in the expectation that it will be written by that company. It is of a class which is acceptable to the company, but is declined in whole or in part in a particular instance.