Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 26 - Trade Practices
Article 8 - Life Insurance Policy and Annuity Contract Replacements
3 AAC 26.819 - Definitions

Universal Citation: 3 AK Admin Code 26.819

Current through February 24, 2025

In 3 AAC 26.790 - 3 AAC 26.819, unless the context requires otherwise,

(1) "credit life insurance" has the meaning given in AS 21.57.160;

(2) "direct-response solicitation" means a solicitation solely through mail, telephone, the Internet, or other mass communication media;

(3) "existing insurer" means the insurer whose life insurance policy or annuity contract is or will be changed or affected by a replacement;

(4) "existing life insurance policy or annuity contract" means an individual life insurance policy or annuity contract in force; "existing life insurance policy or annuity contract" includes

(A) a life insurance policy under a binding or conditional receipt; and

(B) a life insurance policy or annuity contract that is within an unconditional refund period;

(5) "financed purchase" means the purchase of a new life insurance policy involving the actual or intended use of money obtained by the withdrawal or surrender of or by borrowing from values of an existing life insurance policy to pay all or part of any premium due on the new life insurance policy; "financed purchase" includes using withdrawn, surrendered, or borrowed life insurance policy values of an existing life insurance policy within four months before or 13 months after the effective date of a new life insurance policy to pay premiums on the new life insurance policy, if the new life insurance policy is owned by the same policyholder and issued by the same insurer;

(6) "guaranteed elements" means the premiums, credited interest rates, bonuses, benefits, values, non-interest based credits, charges, or elements of formulas used to determine any of these, that are guaranteed and determined at issue; 'guaranteed elements' includes a value or amount calculated from only guaranteed elements;

(7) "illustration" means a presentation or depiction that includes non-guaranteed elements of a policy of life insurance over a period of years as prescribed in 3 AAC 28.800 - 3 AAC 28.849;

(8) "insurance producer" has the meaning given in AS 21.27.900;

(9) "non-guaranteed elements" means the premiums, credited interest rates, bonuses, benefits, values, non-interest based credits, charges, or elements of formulas used to determine any of these, that are subject to discretion by the insurer and are not guaranteed at issue; "non-guaranteed elements" includes a value or amount calculated from at least one nonguaranteed element;

(10) "policy summary" means

(A) for other than universal life policies, a written statement regarding a life insurance policy or annuity contract that contains, to the extent applicable, the
(i) current death benefit;

(ii) annual contract premium;

(iii) current cash surrender value;

(iv) current dividend;

(v) application of the current dividend; and

(vi) amount of any outstanding loan;

(B) for universal life policies, a written statement that contains at least the
(i) beginning and ending date of the current reporting period;

(ii) policy value at the end of the previous reporting period and at the end of the current reporting period;

(iii) total amounts by type of credit or debit that have been credited or debited to the policy value during the current reporting period;

(iv) current death benefit at the end of the current reporting period on each life covered by the policy;

(v) net cash surrender value of the policy at the end of the current reporting period; and

(vi) amount of outstanding loans, if any, at the end of the current reporting period;

(11) "registered contract" means a variable annuity contract or a variable life insurance policy that is subject to the registration and prospectus delivery requirements under 15 U.S.C. 77 e (sec. 5 of the Securities Act of 1933);

(12) "replacement" means a transaction involving the purchase of a new life insurance policy or annuity contract in which, by reason of the transaction, the insurance producer or the replacing insurer, if no insurance producer is involved, knows or should have known that an existing life insurance policy or annuity contract was or will be

(A) lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer, or otherwise terminated;

(B) converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy values;

(C) amended in a manner that results in a reduction in benefits or in the term of the coverage or benefits;

(D) reissued with any reduction in cash value; or

(E) used in a financed purchase;

(13) "replacing insurer" means the insurer that issues or proposes to issue a new life insurance policy or annuity contract that replaces an existing life insurance policy or annuity contract or is a financed purchase;

(14) "sales material" means the illustration and any other written, printed, or electronically presented information created, completed, or provided by the insurer or insurance producer and is used in the presentation to the life insurance policy or annuity contract owner related to a life insurance contract or annuity contract purchase;

(15) "universal life insurance policy" means a life insurance policy in which separately identified interest credits and charges, including mortality and expense charges, are applied to the life insurance policy;

(16) "working day" means a calendar day other than Saturday, Sunday, an official federal holiday, or an official holiday in this state.

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 26.819, so that the citation to former AS 21.36.150 now refers to the renumbered statute, AS 21.36.900.

Authority:AS 21.06.090

AS 21.36.020

AS 21.36.030

AS 21.36.040

AS 21.36.050

AS 21.36.900

Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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