A. This Rule shall not apply to solicitations
or sales involving:
1. Credit
insurance;
2. 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;
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 superintendent; 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 U.S.C. §§
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), and which 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 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.
C. For purposes of this Rule, 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 Rule in any in-person,
face-to-face meeting established as a result of the "solicitation" exemptions
identified in this Subsection.
