31A-23a-403. Inherent unsuitability.
(1) If the commissioner finds after a hearing that a certain type of accident and health
insurance, life insurance, or annuity product is inherently unsuitable for persons of certain ages or
in certain conditions of health, the commissioner shall make a rule declaring the accident and
health insurance, life insurance, or annuity product as inherently unsuitable for persons of certain
ages or in certain conditions of health.
(2) An accident and health insurance, life insurance, or annuity product that is subject to
the rule may not be sold to a person for whom the product has been determined as inherently
unsuitable unless that person purchasing the product signs a receipt acknowledging having
received a statement that expresses that the product has been determined by the commissioner to
be inherently unsuitable for persons of certain ages or in certain conditions of health.
(3) Unless the insurer or its appointed licensee establishes that its sale of coverage is
inconsistent with the rule made under Subsection (1) is due to excusable neglect, the purchaser
may treat the sale as voidable, if acted upon by the insured within a two-year period from the date
of sale.
Renumbered and Amended by Chapter 298, 2003 General Session
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Last revised: Thursday, May 28, 2009