Arizona Administrative Code › Title 20 - COMMERCE, FINANCIAL INSTITUTIONS, AND INSURANCE › Chapter 06 - DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS - INSURANCE DIVISION › Article 22 - MILITARY PERSONNEL › Section R20-6-2201 - Military Sales Practices

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				Definitions.
1. "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. "Active duty" does not
				include members of the reserve component who are performing active duty or
				active duty under military calls or orders specifying periods of less than 31
				calendar days.
2. "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.
3. "Division" means the Division of Insurance
				of the Department of Insurance and Financial Institutions.
4. "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.
5. "ERISA" means the Employee Retirement and
				Income Security Act;
6. "Formal
				banking relationship" for purposes of subsection (D), means a relationship
				established between a service member and a depository institution which:
a. Provides the service member with a deposit
				agreement and periodic statements and makes disclosures required by the Truth
				in Savings Act,
				12 U.S.C. §
												4301, et seq. and its accompanying
				regulations; and
b. Permits the
				service member to make deposits and withdrawals unrelated to the payment or
				processing of insurance premiums.
7. "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 promotion of the insurance producer.
8. "Insurer" means an insurance company
				required to be licensed under the laws of Arizona to provide life insurance
				products, including annuities.
9.
				"Insurance producer" means a person required to be licensed pursuant to A.R.S.
				§
										20-282.
10. "IRC" means Internal Revenue
				Code.
11. "Known" or "Knowingly"
				means 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 depending on its use in this Section, the person solicited
				was either a service member or was a service member with a pay grade of E-4 or
				below.
12. "Life insurance" has the
				meaning defined at A.R.S. §
										20-254.
13. "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.
14. "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.
15. "Service member" means any active duty
				officer (commissioned and warrant) or enlisted member of the United States
				Armed Forces.
16. "SGLI" means
				Service members' Group Life Insurance.
17. "Side fund" means a fund or reserve that
				is part of or otherwise attached to a life insurance policy (excluding
				individually issued annuities) by rider, endorsement, or other mechanism which
				accumulates premium, or deposits with interest, or by other means. "Side fund"
				does not include:
a. Accumulated value, or
				cash value, or secondary guarantees provided by an universal life insurance
				policy;
b. Cash values provided by
				a whole life policy which are subject to standard nonforfeiture law for life
				insurance; or
c. A premium deposit
				fund which:
i. Contains only premiums paid in
				advance which accumulate at interest;
ii. Imposes no penalty for
				withdrawal;
iii. Does not permit
				funding beyond future required premiums;
iv. Is not marketed or intended as an
				investment; and
v. Does not carry a
				commission, either paid or calculated.
18. "Specific appointment" means a
				prearranged appointment agreed upon by both parties and definite as to place
				and time.
19. "U.S." means United
				States.
20. "U.S. Armed Forces"
				means all components of the Army, Navy, Air Force, Marine Corps, Coast Guard,
				and Space Force.
21. "VGLI" means
				Veterans' Group Life Insurance.