Prohibition on Twisting. A failure to comply with this chapter is a violation of Insurance Article, §27-213, Annotated Code of Maryland, including: Deceptive or misleading information set forth in sales material; Failing to ask the applicant, in completing the application, the pertinent questions regarding the possibility of financing or replacement; Intentional incorrect recording of an answer; Advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer; or Advising the owner of a life insurance policy or annuity contract to write directly to the insurer in such a way as to attempt to obscure the identity of the replacing insurance producer or insurer. Intent to Finance New Policy With Existing Policy Value—Individual Transaction—Prima Facie Case. For purposes of a regulatory review of an individual transaction only, it is deemed prima facie evidence of a policyholder's intent to finance the purchase of a new life insurance policy with existing life insurance policy values if a withdrawal, surrender, or borrowing involving the life insurance policy values of an existing life insurance policy is used to pay premiums: On a new life insurance policy owned by the same policyholder and issued by the same insurer; and Within 4 months before or 13 months after the effective date of the new life insurance policy. The prima facie standard established by §B(1) of this regulation is not intended to increase or decrease the monitoring obligations of an insurer under Regulation .05A(1)(e) of this chapter. Replacement After Indication That Replacement Not Intended—Pattern of Action—Prima Facie Case. The owner of a life insurance policy or annuity contract may replace an existing life insurance policy or existing annuity contract after indicating in, or as a part of, an application for new coverage that replacement is not the intention of the owner. Notwithstanding §C(1) of this regulation, if owners of life insurance policies or annuity contracts of the same insurance producer have a pattern of replacing life insurance policies or annuity contracts after indicating on the application that replacement is not their intention, the pattern of action is prima facie evidence of the insurance producer's: Knowledge that replacement was intended in connection with the identified transactions; and Intent to violate this chapter. Provision of Information. If it is determined that the requirements of this regulation have not been met, the replacing insurer shall provide to the owner of the life insurance policy or annuity contract: An in-force illustration, if available, or life insurance policy summary for the replacement life insurance policy or available disclosure document for the replacement annuity contract; and The appropriate notice regarding replacements in Regulation .10 or .12 of this chapter. Penalties. An insurance producer who violates this chapter is subject to: A penalty under Insurance Article, §10-126, Annotated Code of Maryland; and Forfeiture of commissions or compensation paid to the insurance producer as a result of a transaction in connection with which a violation occurred. An insurer that violates this chapter is subject to a penalty under Insurance Article, §4-113, Annotated Code of Maryland.