Current through Register Vol. XLI, No. 38, September 20, 2024
3.1. This rule does not
apply to solicitations or sales involving:
a.
Credit insurance;
b. 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;
c. An
application to the insurer that issued the existing policy or contract when a
contractual change or a conversion privilege is being exercised, when the existing
policy or contract is being replaced by the same insurer pursuant to a program filed
with and approved by the Insurance 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 Servicemembers' Group Life Insurance (SGLI) or Veterans' Group
Life Insurance (VGLI), as authorized by 38 U.S.C. Section 1965et
seq.;
f. Life insurance
contracts offered through or by a non-profit military association, qualifying under
Section 501 (c) (23) of the Internal Revenue Code (IRC), 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 IRC, as amended, if
established or maintained by an employer;
3. A government or church plan defined in Section
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
Section 457 of the IRC;
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.
3.2. Nothing in this rule
abrogates 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.
3.3. For purposes of this rule, general
advertisements, direct mail and internet marketing does not constitute
"solicitation." Telephone marketing does 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. Nothing in this subsection
exempts 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.
