Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-133 - LIFE INSURANCE AND ANNUITIES REPLACEMENT REGULATION › Section 482-1-133-.03 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
(1) DIRECT-RESPONSE
			 SOLICITATION. A solicitation through a sponsoring or endorsing entity or
			 individually solely through mails, telephone, the Internet or other mass
			 communication media.
(2) EXISTING
			 INSURER. The insurance company whose policy or contract is or will be changed
			 or affected in a manner described within the definition of
			 REPLACEMENT.
(3) EXISTING POLICY OR
			 CONTRACT. An individual life insurance policy (policy) or annuity contract
			 (contract) in force, including a policy under a binding or conditional receipt
			 or a policy or contract that is within an unconditional refund
			 period.
(4) FINANCED PURCHASE. 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 on the same insured to pay all or part of any premium due on the new
			 policy. For purposes of a regulatory review 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 on the same insured and
			 issued by the same company within four (4) months before or thirteen (13)
			 months after the effective date of the new policy, it will be deemed prima
			 facie evidence of the policyholder's intent to finance the purchase of the new
			 policy with existing policy values. This prima facie standard is not intended
			 to increase or decrease the monitoring obligations contained in Rule
			 482-1-133-.05(a)5
			 of this chapter.
(5) ILLUSTRATION.
			 A presentation or depiction that includes non-guaranteed elements of a policy
			 of life insurance over a period of years as defined in Chapter
			 482-1-114.
(6) INSURED. The person
			 who is covered by insurance on his or her life.
(7) POLICY OWNER. The owner named in the life
			 insurance policy.
(8) POLICY
			 SUMMARY. For the purposes of this chapter:
(a)
			 For policies or contracts other than universal life policies. A written
			 statement regarding a 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. 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, identifying 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.