Current through Register Vol. 48, No. 12, March 22, 2024
a) This Part shall
not apply to solicitations or sales involving:
1) Credit insurance;
2) Group life insurance or group annuities
when there is no in-person, face-to-face solicitation of individuals by an
insurance producer or when the contract or certificate does not include a side
fund;
3) 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 Director; or when a term conversion privilege is
exercised among corporate affiliates;
4) Individual stand-alone health policies,
including disability income policies;
5) Contracts offered by Servicemembers' Group
Life Insurance (SGLI) or Veterans' Group Life Insurance (VGLI), as authorized
by 38 USC 1965 et
seq.;
6) Life insurance contracts
offered through or by a non-profit military association qualifying under
section 501(c)(23) of the Internal Revenue Code (IRC) (
26 USC
501(c)(23) ), and that are
not underwritten by an insurer; or
7) Contracts used to fund:
A) An employee pension or welfare benefit
plan that is covered by the Employee Retirement and Income Security Act
(ERISA);
B) 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;
C) 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;
D) A nonqualified deferred compensation
arrangement established or maintained by an employer or plan sponsor;
E) Settlements of or assumptions of
liabilities associated with personal injury litigation or any dispute or claim
resolution process; or
F)
Prearranged funeral contracts.
b) Nothing in this Section 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.
c) For purposes of this Part, 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 Part in any in-person,
face-to-face meeting established as a result of the "solicitation" exemptions
identified in this subsection.