Current through Register Vol. 54, No. 12, March 23, 2024
(a) This chapter
does 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 one of the
following applies:
(i) A contractual change or
a conversion privilege is being exercised.
(ii) The existing policy or contract is being
replaced by the same insurer under a program filed with and approved by the
Commissioner.
(iii) A term
conversion privilege is exercised among corporate affiliates.
(4) Individual stand-alone health
policies, including disability income policies.
(5) Contracts offered by Service members'
Group Life Insurance or Veterans' Group Life Insurance, as authorized under
38 U.S.C. §§
1965-1980A (relating to servicemembers'
group life insurance).
(6) Life
insurance contracts offered through or by a nonprofit military association,
qualifying under section 501(c)(23) of the Internal Revenue Code of 1986
(26 U.S.C.A. §
501(c)(23)), and which are
not underwritten by an insurer.
(7)
Contracts used to fund:
(i) An employee
pension or welfare benefit plan that is covered by the Employee Retirement and
Income Security Act (ERISA) (29 U.S.C.A. §§
1001-1461).
(ii) A plan described by sections 401(a) or
(k), 403(b) or 408(k) or (p) of the Internal Revenue Code of 1986
(26 U.S.C.A. §§
401(a) or (k),
403(b) or
408(k) or
(p)), if established or maintained by an
employer.
(iii) A government or
church plan defined in section 414 of the Internal Revenue Code of 1986
(26 U.S.C.A. §
414) or a deferred compensation plan of a
state or local government or tax exempt organization under section 457 of the
Internal Revenue Code of 1986 (26 U.S.C.A. §
457).
(iv) A nonqualified deferred compensation
arrangement established or maintained by an employer or plan sponsor.
(v) Settlements of or assumptions of
liabilities associated with personal injury litigation or any dispute or claim
resolution process.
(vi)
Prearranged funeral contracts.
(b) Nothing in this chapter abrogates the
ability of nonprofit organizations or other organizations, or both, to educate
members of the United States Armed Forces in accordance with Department of
Defense Instruction 1344.07-PERSONAL COMMERCIAL SOLICITATION ON DOD
INSTALLATIONS or successor directive.
(c) For purposes of this chapter, general
advertisements, direct mail and internet marketing do not constitute
"solicitation." Telephone marketing does not constitute "solicitation," when
the caller explicitly and conspicuously discloses that the product concerned is
life insurance and makes no statements that evade a clear and unequivocal
statement that life insurance is the subject matter of the solicitation.
Nothing in this section 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 section.
