Utah Administrative Code
Topic - Insurance
Title R590 - Administration
Rule R590-242 - Military Sales Practices
Section R590-242-2 - Purpose and Scope

Universal Citation: UT Admin Code R 590-242-2

Current through Bulletin 2024-06, March 15, 2024

(1)

(a) The purpose of this rule is to set forth standards to protect an active duty service member of the United States Armed Forces from dishonest and predatory insurance sales practices.

(b) Nothing in this rule creates or implies a private cause of action for a violation of this rule.

(2)

(a) This rule applies to the solicitation, negotiation, or sale of a life insurance product, including an annuity, by an insurer or insurance producer to an active duty service member of the United States Armed Forces.

(b) This rule does not apply to a solicitation, negotiation, or sale involving:
(i) credit insurance;

(ii) group life insurance or a group annuity where there is no in-person, face-to-face solicitation of individuals by an insurance producer, or where the policy, contract, or certificate does not include a side fund;

(iii) an application to the existing insurer that issued the existing policy or contract when:
(A) a contractual change or a conversion privilege is being exercised;

(B) the existing policy or contract is being replaced by the same insurer pursuant to a program filed with and approved by the commissioner; or

(C) a term conversion privilege is exercised among corporate affiliates;

(iv) individual stand-alone health insurance, including income insurance;

(v) a contract offered by SGLI or VGLI;

(vi) life insurance offered through or by a nonprofit military association, qualifying under Section 501(c)(23) of the Internal Revenue Code, and that is not underwritten by an insurer; or

(vii) a contract used to fund:
(A) an employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act;

(B) a plan described by Section 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;

(C) 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;

(D) a nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;

(E) a settlement of or assumption of liabilities associated with personal injury litigation or any dispute or claim resolution process; or

(F) a prearranged funeral contract.

(c) This rule does not prohibit a nonprofit organization from educating a member of the United States Armed Forces in accordance with the DOD Instruction 1344.07 - Personal Commercial Solicitation on DOD Installations or a successor directive.

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