Permission to Use Insurer’s Own Replacement Memorandum for Replacement of Life Insurance Policies and Annuities Contracts

Hugh McDonald SECRETARY OF COMMERCE AID t11.7.="" * * Bulletin No. 10-2025 Alan McClain COMMISSIONER, ARKANSAS INSURANCE DEPARTMENT To: All Life Insurers and Producers, Trade Associations, and Other Interested Parties From: Arkansas Insurance Department Date: August 4, 2025 Re: Permission to Use Insurer's Own Replacement Memorandum for Replacement of Life Insurance Policies and Annuities Contracts The Arkansas Insurance Department hereby rescinds Bulletin 8-2009. The Arkansas Insurance Commissioner issues this Bulletin to advise life insurers that the Department no longer requires a replacement memorandum to be in the format attached to Bulletin 8-2009 to satisfy 23 CAR §§ 128-103, 128-105, and 128-107. The Life Insurance and Annuities Replacement Rule, 23 CAR pt. 128, formerly Rule 97, requires a replacing producer to obtain a replacement memorandum executed by both the producer and the applicant when the applicant has an existing life insurance policy or annuity, and the applicant is replacing the existing policy with a new life insurance policy, or an existing annuity with a new annuity. Life insurers may use their own replacement memorandums so long as those memorandums clearly offer a comparison between the existing product and the replacement product. The comparison between existing and replacement products should clearly illustrate the differences between the two products and include the following, if applicable: • Current proposed premium; • Current contract value; • Current surrender value; • Death benefit amount; • Current interest rate and guarantee period; • Guaranteed minimum accumulation / interest rate; Arkansas Department of Commerce Arkansas Insurance Department 1 Commerce Way, Suite 102 Little Rock, AR 72202 INSURANCE.ARKANSAS.GOV • Surrender charge period in years / charge percentage per year / years remaining; • Availability and percentage of free withdrawals; • Other significant policy or contract provisions; • Initial bonus percentage or amount; • Potential loss of bonus if annuity is exchanged, surrendered, or funds withdrawn; • List of additional riders; and • Other significant policy or contract provisions. For questions related to this Bulletin, please direct all inquiries to AID's Legal Division at (501) 371-2820 or email insurance.legal@arkansas.gov. Alan McClain Arkansas Insurance Commissioner 8/4/2025 Date