Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Generally.
This chapter does not apply to solicitations or sales
involving:
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 United States Code, title 38, section 1965, et seq.;
F. life insurance contracts offered through
or by a nonprofit military association, qualifying under section 501(c)(23) of
the Internal Revenue Code, and which are not underwritten by an insurer;
or
G. contracts used to fund:
(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 Internal Revenue
Code, as amended, if established or maintained by an employer;
(3) a government or church plan defined in
section 414 of the Internal Revenue Code, 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 Internal Revenue
Code;
(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; or
(6) prearranged funeral contracts.
Subp. 2.
Commercial solicitations on DoD installations.
Nothing in this chapter abrogates the ability of nonprofit
organizations 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.
Subp. 3.
Solicitation exemptions.
For purposes of this chapter, general advertisements, direct
mail, and Internet marketing do not constitute "solicitation." Telephone
marketing does 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. Nothing in this subpart exempts 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 subpart.
