Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 171 - MISCELLANEOUS INSURANCE RULES › Subchapter 6 - MILITARY SALES PRACTICES › Section 16-171-603 - Scope and exemptions

Current through June, 2024
(a) This subchapter
				shall apply only to the solicitation or sale of any life insurance or annuity
				product by an insurer or insurance producer to an active duty service member of
				the United States Armed Forces.
(b)
				This subchapter shall not apply to solicitations or sales involving:
(1) Credit insurance;
(2) Group life insurance or group annuities
				where there is no in-person, face-to-face solicitation of individuals by an
				insurance producer or insurer or where the contract or certificate does not
				include a side fund;
(3) An
				application to the existing insurer that issued the existing policy or contract
				when a contractual change or a conversion privilege is being exercised, when
				the existing policy or contract is being replaced by the same insurer pursuant
				to a program filed with and approved by the commissioner or when a term
				conversion privilege is exercised among corporate affiliates;
(4) Individual stand-alone health policies,
				including disability income policies;
(5) Except as provided herein, contract
				offered by SGLI or VGLI, as authorized by
				38
				U.S.C. section 1965
et
				seq.
;
(6) Life insurance
				contracts offered through or by a non-profit military association, qualifying
				under section 501(c)(23) of the IRC, and which are not underwritten by an
				insurer; or
(7) Contracts used to
				fund:
(A) An employee pension or welfare
				benefit plan that is covered by the Employee Retirement and Income Security Act
				("ERISA");
(B) A plan described by
				sections 401(a), 401(k), 403(b), 408(k), and 408 (p) of the IRC, as amended, if
				established or maintained by an employer;
(C) A government or church plan defined in
				section 414 of the IRC, a government or church welfare benefit plan, or a
				deferred compensation plan of a state or local government or tax-exempt
				organization under section 457 of the IRC;
(D) A nonqualified deferred compensation
				arrangement established or maintained by an employer or a plan
				sponsor;
(E) Settlements or
				assumptions or liabilities associated with personal injury litigation or any
				dispute or claim resolution process; or
(F) Prearranged funeral contracts.
(8) Nothing herein shall be
				construed to abrogate the ability of nonprofit organizations or other
				organizations to educate members of the United States Armed Forces in
				accordance with Department of Defense DoD Instruction 1344.07, Personal
				Commercial Solicitation on DoD Installations, or successor directive.
(9) For purposes of this regulation, general
				advertisements, direct mail and internet marketing shall not constitute
				'solicitation". Telephone marketing shall not constitute 'solicitation"
				provided the caller explicitly and conspicuously discloses that the product
				concerned involves life insurance or an annuity and makes no statements that
				preclude a clear and unequivocal understanding that life insurance or any
				annuity is the only subject matter of the solicitation. Provided, however, that
				nothing in this subsection shall be construed to relieve an insurer or
				insurance producer from this regulation in any in-person, face-to-face meeting
				established as a result of the 'solicitation" exemptions identified in this
				subsection.