MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
IV. NEW ISSUE
The examiners reviewed 31 of 153 new issue files submitted by agents. These files contained applications for insurance waiting underwriting approval from the Home Office. The
examiners verified that the applications were complete, verified that the application file contained a copy of all
signed and dated. The examiners also of the forms and documents needed to receipt, tax notification receipt, sales
illustrations, replacement that the agents writing the
forms, and 1035 exchange disclosure forms. The examiners applications for insurance were licensed in Maryland.
The examiners noted that 10 of the 31 new issue files involved the exchange of an existing universal life insurance policy for a new variable universal life insurance policy. The exchange ratio appeared too high (32%).
New Issue Refunds
New issue applications remain in a pending status until the underwriters approve or disapprove the application. If the application is not approved, any advance premium forwarded with the application is sent to the submitting agency for return to the applicant.
The refund checks are recorded in a return check log and then given to the agent to return to the applicant. A review of the returned check log found that all checks had been mailed or returned to the applicant within five days after receipt of the check from the Home Office. No checks have been returned to the Rockville, Maryland Agency because of an incorrect address.
MET LIFE REPORT NO. 786-01