Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-2 - Definitions

Current through July 10, 2024
As used in section
				38a-435-1 to section
				38a-435-8, inclusive, of the
				Regulations of Connecticut State Agencies:
(1) "Commissioner" means the Insurance
			 Commissioner.
(2) "Contract" means
			 an annuity contract.
(3) "Direct
			 response solicitation" means a solicitation through a sponsoring or endorsing
			 entity or individually solely through mail, telephone, the Internet or other
			 mass communication media.
(4)
			 "Existing insurer" means the insurance company whose existing policy or
			 contract is or will be changed or affected in a manner described within the
			 definition of "replacement".
(5)
			 "Existing policy or contract," "existing policy," or "existing contract" means
			 an individual policy or contract , as applicable, in force, including a policy
			 under a binding or conditional receipt or a policy or contract that is within
			 an unconditional refund period.
(6)
			 "Financed purchase" means the purchase of a new policy involving the actual or
			 intended use of funds obtained by the withdrawal or surrender of, or by
			 borrowing from values of an existing policy to pay all or part of any premium
			 due on the new policy. For purposes of an individual transaction only, if a
			 withdrawal, surrender or borrowing involving the policy values of an existing
			 policy is used to pay premiums on a new policy owned by the same policy owner
			 and issued by the same company no more than four (4) months before or no more
			 than thirteen (13) months after the effective date of the new policy, it will
			 be deemed
prima facie
evidence of the policy owner's intent to
			 finance the purchase of the new policy with existing policy values. This
prima facie
standard shall not affect the monitoring
			 obligations contained in section
			 38a-435-4(a)(5)
			 of the Regulations of Connecticut State Agencies.
(7) "Illustration" means a presentation or
			 depiction that includes non-guaranteed elements of a policy of life insurance
			 over a period of years.
(8)
			 "Policy" means a life insurance policy.
(9) "Policy summary":
(A) For policies or contracts other than
			 universal life policies, means a written statement regarding such policy or
			 contract which shall contain to the extent applicable, but need not be limited
			 to, the following information: current death benefit; annual contract premium;
			 current cash surrender value; current dividend; application of current
			 dividend; and amount of outstanding loan.
(B) For universal life policies, means a
			 written statement that shall contain at least the following information: the
			 beginning and end date of the current report period; the policy value at the
			 end of the previous report period and at the end of the current report period;
			 the total amounts that have been credited or debited to the policy value during
			 the current report period, indentifying each by type (e.g., interest,
			 mortality, expense and riders); the current death benefit at the end of the
			 current report period on each life covered by the policy; the net cash
			 surrender value of the policy as of the end of the current report period; and
			 the amount of outstanding loans, if any, as of the end of the current report
			 period.