North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-04 - Life Insurance
Chapter 45-04-14 - Military Sales Practices
Section 45-04-14-02 - Scope

Universal Citation: ND Admin Code ยง 45-04-14-02

Current through Supplement No. 394, October, 2024

1. This chapter applies to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States armed forces. This rule shall not apply to solicitations or sales involving;

a. Credit insurance;

b. 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;

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 SGLI or VGLI, as authorized by 38 U.S.C. 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.

2. This chapter shall not abrogate 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 a successor directive.

3. 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 chapter 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.

General Authority: NDCC 26.1-01-08, 28-32-02

Law Implemented: NDCC 26.1-04, 26.1-33-02

Disclaimer: These regulations may not be the most recent version. North Dakota 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.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.