Nebraska Issues Product Replacement Notice Bulletin

Nebraska insurance regulators are giving insurers in the state advice about how to proceed when they are replacing existing life insurance and annuity products.

A new Nebraska law requires a replacing insurer to notify each existing insurer that might be affected by a proposed replacement within 5 business days after receiving a replacement product application, or when the insurer discovers that it is replacing an existing product, if the applicant does not mention the existing product.

An insurer replacing a life policy should send the insurer that sold the existing policy a copy of the available illustration or policy summary for the proposed policy, Ann Frohman, director of the Nebraska Insurance Department, writes in a bulletin.

An insurer replacing an annuity should send the insurer that issued the existing annuity a copy of available disclosure document, Frohman writes.