Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-24 - REPLACEMENT OF LIFE INSURANCE POLICIES › Rule 120-2-24-.03 - Definitions

Current through Rules and Regulations filed through June 27, 2024
The following words and terms, when used in this Regulation
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
(1) "Advertisement" shall
				be defined as set forth in Chapter 120-2-11 of the Rules and Regulations of the
				Georgia Insurance Department, entitled "Advertising of Life Insurance and
				Annuity Contracts," at Rule
				120-2-11-.03.
(2) "Agent" means any person licensed by this
				state as a life insurance agent or counselor.
(3) "Annuity" means a contract by which one
				party in return for a stipulated payment or payments promises to pay periodic
				installments for a stated certain period of time or for the life or lives of
				the person or persons specified in the contract, but does not cover the
				proceeds of life insurance no matter how payable.
(4) "Commissioner" means the Insurance
				Commissioner of the State of Georgia.
(5) "Conservation" means any attempt by the
				existing insurer, its agent or a counselor to discourage a policyowner from the
				replacement of existing life insurance. A conservation does not include routine
				administrative procedures such as late payment reminders or late payment or
				reinstatement offers.
(6) "Direct
				response insurer" means an insurer that does not utilize an agent or counselor
				in the sale or delivery of the policy.
(7) "Existing insurer" means the insurer
				whose policy is or is proposed to be replaced.
(8) "Existing life insurance" means any
				in-force life insurance, including life insurance under a binding or
				conditional receipt or within the unconditional refund period.
(9) "Insurer" shall include any individual,
				corporation, association, partnership, or any other legal entity which is
				defined as an "Insurer" in the Georgia Insurance Code or issues life insurance
				or annuity contracts for delivery in this State.
(10) "Policy Summary" shall be defined as set
				forth in Chapter 120-2-31 of the Rules and Regulations of the Georgia Insurance
				Department, entitled "Life Insurance Solicitation Regulation," at Rule
				120-2-31-.04(8),
				and as required under Rule
				120-2-31-.05.
(11) "Replacing insurer" means the insurer
				that issues or is proposed to issue a new policy or annuity that is a
				replacement of existing life insurance.
(12) "Replacement" means any transaction in
				which new life insurance or an annuity has been or is to be purchased, and the
				proposing agent or counselor or the proposing insurer if no agent or counselor
				is involved, knows or should know that because of such transaction, existing
				life insurance has been or is to be:
(a)
				lapsed, forfeited, surrendered, or otherwise terminated;
(b) changed to reduced paid-up or extended
				term insurance, or otherwise reduced in value by the use of nonforfeiture
				benefits, policy loans, or other policy values.
(c) amended to effect either a reduction in
				benefits or in the term for which coverage would otherwise remain in force;
				or
(d) reissued with any reduction
				in cash value.