Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69O - OIR - Insurance Regulation › Chapter 69O-142 - INSURER CONDUCT › Section 69O-142.200 - Military Sales Practices

Current through Reg. 50, No. 138; July 16, 2024
(1) The purpose
				of this regulation is to set forth standards to protect active duty service
				members of the United States Armed Forces from dishonest and predatory
				insurance sales practices by declaring certain identified practices to be
				false, misleading, deceptive or unfair.
(2) Scope - This regulation shall apply only
				to the solicitation or sale of any life insurance or annuity product by an
				insurer to an active duty service member of the United States Armed
				Forces.
(3) Exemptions - This
				regulation shall not apply to solicitations or sales involving:
(a) Credit insurance;
(b) Group life insurance or group annuities
				where there is no in-person, face-to-face solicitation of individuals by an
				insurance producer or where the contract or certificate does not include a side
				fund;
(c) An application to the
				existing insurer that issued the existing policy or contract when a contractual
				change or a conversion privilege is being exercised; or, 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;
(d) Individual stand-alone health policies,
				including disability income policies;
(e) Contracts offered by Servicemembers'
				Group Life Insurance (henceforth "SGLI") or Veterans' Group Life Insurance
				(henceforth "VGLI"), as authorized by
				38 U.S.C. Section
				1965 et seq.;
(f) Life insurance contracts offered through
				or by a non-profit military association, qualifying under Section
				501(c)(23) of the
				Internal Revenue Code (IRC), and which are not underwritten by an insurer;
				or
(g) Contracts used to fund:
1. An employee pension or welfare benefit
				plan that is covered by the Employee Retirement and Income Security Act
				(ERISA),
2. A plan described by
				Sections 401(a),
				401(k),
				403(b),
				408(k) or
				408(p) of the
				IRC, as amended, if established or maintained by an employer;
3. 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;
4. A nonqualified deferred compensation
				arrangement established or maintained by an employer or plan sponsor;
5. Settlements of or assumptions of
				liabilities associated with personal injury litigation or any dispute or claim
				resolution process; or
6.
				Prearranged funeral contracts.
(h) Nothing herein shall be construed to
				abrogate the ability of nonprofit organizations (and/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.
(i) 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 is life insurance and makes no statements that avoid a clear and
				unequivocal statement that life insurance is the subject matter of the
				solicitation. Provided however, nothing in this subsection shall be construed
				to exempt an insurer from this regulation in any in-person, face-to-face
				meeting established as a result of the "solicitation" exemptions identified in
				this subsection.