Current through Register Vol. 42, No. 5, February 29, 2024
(1) This chapter
shall not apply to solicitations or sales involving any of the following:
(a) Credit insurance.
(b) Group life insurance or group annuities
where there is no in-person, face-to-face solicitation of individuals by an
insurance producer or where the contract or certificate does not include a side
fund.
(c) An application to the
existing insurer that issued the existing policy or contract when a contractual
change or a conversion privilege is being exercised; or, when the existing
policy or contract is being replaced by the same insurer pursuant to a program
filed with and approved by the commissioner; or, when a term conversion
privilege is exercised among corporate affiliates.
(d) Individual stand-alone health policies,
including disability income policies.
(e) Contracts offered by Servicemembers'
Group Life Insurance (SGLI) or Veterans' Group Life Insurance (VGLI), as
authorized by
38
U.S.C. Section 1965 et seq., and contracts
offered by State Sponsored Life Insurance (SSLI) as authorized by
37 U.S.C. Section
707
et seq.
(f) Life insurance contracts offered through
or by a non-profit military association, qualifying under Section 501 (c) (23)
of the Internal Revenue Code (IRC), and which are not underwritten by an
insurer.
(g) Contracts used to fund
any of the following:
1. An employee pension
or welfare benefit plan that is covered by the Employee Retirement and Income
Security Act (ERISA).
2. A plan
described by Sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the IRC, as
amended, if established or maintained by an employer.
3. A government or church plan defined in
Section 414 of the IRC, a government or church welfare benefit plan, or a
deferred compensation plan of a state or local government or tax exempt
organization under Section 457 of the IRC.
4. A nonqualified deferred compensation
arrangement established or maintained by an employer or plan sponsor.
5. Settlements of or assumptions of
liabilities associated with personal injury litigation or any dispute or claim
resolution process.
6. Preneed
funeral or cemetery contracts.
(2) Nothing herein shall be construed to
abrogate the ability of nonprofit organizations (and/or other organizations) to
educate members of the United States Armed Forces in accordance with Department
of Defense DoD Instruction 1344.07 - Personal Commercial Solicitation on DOD
Installations or successor directive.
(3) For purposes of this chapter, general
advertisements, direct mail and internet marketing shall not constitute
"solicitation." Telephone marketing shall not constitute "solicitation"
provided the caller explicitly and conspicuously discloses that the product
concerned is life insurance and makes no statements that avoid a clear and
unequivocal statement that life insurance is the subject matter of the
solicitation. Provided however, nothing in this subsection shall be construed
to exempt an insurer or insurance producer from this chapter in any in-person,
face-to-face meeting established as a result of the "solicitation" exemptions
identified in this subsection.
