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.
Disclaimer: These regulations may not be the most recent version. Utah 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.
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