A. This Part 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 commissioner; 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. State Sponsored Life Insurance (SSLI)
provided by a State or a State National Guard Association as authorized by
37 U.S.C. §
707 et seq.;
7. Life insurance contracts offered through
or by a non-profit military association, qualifying under §501(c)(23) of
the Internal Revenue Code (IRC), and which are not underwritten by an insurer;
or
8. 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
§§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
§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 §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 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.
