California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 7.5 - Unfair or Deceptive Acts or Practices in the Business of Insurance › Article 1.5 - Sales to Military Personnel › Section 2695.24 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Active duty"
				  means full-time duty in the active military service of the United States and
				  includes members of the reserve component (National Guard and Reserve) while
				  serving under published orders for active duty or full-time training. The term
				  does not include members of the reserve component who are performing active
				  duty or active duty for training under military calls or orders specifying
				  periods of less than 31 calendar days.
(b) "Department of Defense (DoD) personnel"
				  means all active duty service members and all civilian employees, including
				  nonappropriated fund employees and special government employees, of the
				  Department of Defense.
(c) "Door to
				  door" means a solicitation or sales method whereby an insurance producer
				  proceeds randomly or selectively from household to household without prior
				  specific appointment.
(d) "General
				  advertisement" means an advertisement having as its sole purpose the promotion
				  of the reader's or viewer's interest in the concept of insurance, or the
				  promotion of the insurer or the insurance producer.
(e) "Individually issued annuity" means any
				  annuity that neither directly nor indirectly includes, is part of or is
				  attached by rider, endorsement or other mechanism to another life insurance
				  product of any kind.
(f) "Insurer"
				  means an insurance company required to be licensed under the laws of this state
				  to provide life insurance products, including annuities.
(g) "Insurance producer" means a person
				  required to be licensed under the laws of this state to sell, solicit or
				  negotiate life insurance, including annuities.
(h) "Known" or "knowingly" means, depending
				  on its use herein, the insurance producer or insurer had actual awareness, or
				  in the exercise of ordinary care should have known, at the time of the act or
				  practice complained of, that the person solicited is a service
				  member.
(i) "Life insurance" means
				  insurance coverage on human lives including benefits of endowment and
				  annuities, and may include benefits in the event of death or dismemberment by
				  accident and benefits for disability income and, unless otherwise specifically
				  excluded, includes individually issued annuities.
(j) "Military installation" means any
				  federally owned, leased, or operated base, reservation, post, camp, building,
				  or other facility to which service members are assigned for duty, including
				  barracks, transient housing, and family quarters.
(k) "MyPay" is a Defense Finance and
				  Accounting Service (DFAS) web-based system that enables service members to
				  process certain discretionary pay transactions or provide updates to personal
				  information data elements without using paper forms.
(l) As used in this article, in Sections
				  2534.28,
				  2542.3 and
				  2544.2, and in Insurance Code
				  section
				  10168,
				  "premium deposit fund" means amounts paid in (including any interest credited
				  thereon) and held for payments of future contractual obligations of
				  policyholders or contractholders under an individual life insurance policy (or
				  individual annuity contract). The term does not include paid-in amounts, or
				  interest credited thereon, held for the purchase at a future date of annuity
				  benefits for the policyholder of an individual life insurance policy (or the
				  contractholder of an individual annuity contract).
(m) "Service member" means any active duty
				  officer (commissioned and warrant) or enlisted member of the United States
				  Armed Forces.
(n) "Side fund" is
				  defined as a fund or reserve that is part of or otherwise attached to a life
				  insurance policy (which life insurance policy is not an individually issued
				  annuity) by rider, endorsement or other mechanism and which accumulates premium
				  or deposits with interest or by other means. Three exceptions are added to the
				  definition of "side fund" that is stated in the preceding sentence, and these
				  exceptions are described in paragraphs (n)(1), (n)(2) and (n)(3) of this
				  subdivision (n), respectively. For purposes of paragraphs (n)(1) and (n)(2)
				  below, the term "presumptive side fund" means a fund or reserve that, before
				  any of the three exceptions is added, satisfies the definition stated in the
				  first sentence of this subdivision (n).
(1)
				  The following values or guarantees provided by a universal life policy are
				  excepted from the definition of "side fund": accumulated value, cash surrender
				  value or secondary guarantees. However, unless the statement in subparagraph
				  (n)(1)(A) below or the statement in subparagraph (n)(1)(B) below is true, a
				  presumptive side fund constitutes a "side fund," regardless of whether amounts
				  held in such presumptive side fund are taken into account in the method by
				  which accumulated value, cash surrender value or secondary guarantees are
				  calculated:
(A) the presumptive side fund in
				  question is itself nothing other than an accumulated value, cash surrender
				  value or secondary guarantee, each provided by a universal life policy,
				  or
(B) the presumptive side fund in
				  question is pursuant to paragraph (n)(2) below or paragraph (n)(3) below
				  excepted from the definition of "side fund."