(a) The provisions of
3
AAC 26.790 -
3
AAC 26.819 apply to all life insurance policies and
annuity contract transactions except for the following, unless a provision of
3
AAC 26.790 -
3
AAC 26.819 specifically includes the otherwise
exempted transaction:
(1) credit life
insurance;
(2) a group life
insurance policy or group annuity contract transaction in which the direct
solicitation of individuals by an insurance producer does not take place; for
purposes of this paragraph, the following group meetings held by an insurance
producer are not considered direct solicitations of individuals:
(A) a group meeting held solely for the
purpose of educating or enrolling individuals;
(B) a group meeting that an individual member
of the group requests for assistance with the selection of investment options
offered by a single insurer in connection with enrolling the
individual;
(3) a group
life insurance policy or group annuity contract used to fund prepaid funeral
contracts;
(4) an application to
the insurer that issued the existing life insurance policy or annuity contract
to exercise a contractual change, a conversion privilege, or a term conversion
exercised among corporate affiliates;
(5) an existing life insurance policy or
annuity contract that is replaced under a program of replacement of existing
life insurance policies or annuity contracts that is filed with and approved by
the director;
(6) a proposed life
insurance policy to replace life insurance under a binding or conditional
receipt issued by the same company;
(7) a life insurance policy or annuity
contract that is not subject to (b) of this section and is used to fund
(A) an employee pension or welfare benefit
plan that is covered under 29 U.S.C. 1001 -
1461 (Employee Retirement Income
Security Act of 1974);
(B) a plan
described in 26 U.S.C.
401(a) or (k) or
26 U.S.C.
403(b) (Internal Revenue
Code), if the plan is established or maintained by an employer;
(C) a governmental or church plan defined in
26 U.S.C.
414 (Internal Revenue Code), including a
governmental or church welfare benefit plan;
(D) a deferred compensation plan of a state
or local government or tax-exempt organization under
26 U.S.C.
457 (Internal Revenue Code); or
(E) a nonqualified deferred compensation
arrangement under 26 U.S.C.
409 A (Internal Revenue Code) established or
maintained by an employer or plan sponsor;
(8) when new coverage is provided under a
life insurance policy and the cost of the policy is paid solely by the
insured's employer or by an association of which the insured is a
member;
(9) an existing life
insurance policy that is a non-convertible term life insurance policy with a
term of five years or less that cannot be renewed;
(10) an immediate annuity that is purchased
with proceeds from an existing annuity contract;
(11) a structured settlement.
(b) Notwithstanding (a)(7) of this
section, the provisions of
3
AAC 26.790 -
3
AAC 26.819 apply to a life insurance policy or annuity
contract used to fund a plan or arrangement
(1) that is funded solely by contributions an
employee elects to make on a before-tax or after-tax basis;
(2) for which the insurer has been notified
that plan participants may choose from among two or more insurers;
and
(3) for which an insurance
producer directly solicits an individual employee for the purchase of the
contract or policy; for purposes of this paragraph, the following activities
are not considered direct solicitations:
(A)
a group meeting held by an insurance producer solely for the purpose of
educating or enrolling individuals;
(B) when initiated by an individual member of
a group, an insurance producer assisting with the selection of investment
options offered by a single insurer in connection with enrolling an
individual.
(c) A registered contract is exempt from
3
AAC 26.805(a) (3) and
3
AAC 26.810(2) with respect to the
provision of illustrations or policy summaries if premium or contract
contribution amounts and identification of the appropriate prospectus or
offering circular is provided.
In 2010 the revisor of statutes, acting under
AS
01.05.031, renumbered former
AS
21.36.150 as
AS
21.36.900. As of Register 196 (January 2011),
the regulations attorney made a conforming technical revision under
AS
44.62.125(b)(6), to the
authority citation that follows 3 AAC 26.790, so that the citation to former
AS
21.36.150 now refers to the renumbered
statute, AS
21.36.900.
