Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 171 - MISCELLANEOUS INSURANCE RULES › Subchapter 6 - MILITARY SALES PRACTICES › Section 16-171-602 - Definitions

Current through June, 2024
As used in this subchapter:
"Active duty" means full-time duty in the active military
				  service of the United States Armed Forces, National Guard, and reserves while
				  serving under published orders for active service or full-time training. The
				  term does not include members of the National Guard and reserves who are
				  performing active duty or active duty for training under military calls or
				  orders specifying periods of less than thirty-one calendar days.
"Department of Defense, "DD", or "DoD" means all active duty
				  service members and all civilian employees, including nonappropriated fund
				  employees and special government employees of that government agency.
"Door to door" means a solicitation or sales method whereby
				  an insurance producer or insurer proceeds randomly or selectively from
				  household to household without prior specific appointment.
"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 insurance producer.
"Insurance producer" means a person required to be licensed
				  under the laws of the State of Hawaii to sell, solicit, or negotiate life
				  insurance, including annuities.
"Insurer" means an insurance company required to be licensed
				  under the laws of the State of Hawaii to provide life insurance products,
				  including annuities.
"IRC" means the Internal Revenue Code.
"Known" or "knowingly", depending on its use herein, 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 the person solicited:
(1) Is a service member; or
(2) Is a service member with a pay grade of E-4 or
				  below.
"Life insurance" means insurance coverage on human lives,
				  including benefits of endowments and annuities, and may include benefits in the
				  event of death or dismemberment by accident and benefits for disability income
				  and, unless otherwise specifically excluded, includes individually issued
				  annuities.
"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.
"MyPay" is a Defense Finance and Accounting Service 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.
"Service member" means any active duty officer, commissioned
				  and warrant, or enlisted member of the United States Armed Forces.
"SGLI" means a contract offered by Servicemembers' Group Life
				  Insurance, as authorized by
				  38
				  U.S.C. section 1965
et
				  seq.
"Side fund" means an account or reserve that is part of or
				  otherwise attached to a life insurance policy, excluding individually issued
				  annuities by rider, endorsement, or other means. The term 'side fund" does not
				  include:
(1) Accumulated value or cash value or secondary guarantees
				  provided by a universal life policy;
(2) Cash values provided by a whole life policy which are
				  subject to standard nonforfeiture law for life insurance; or
(3) A premium deposit fund which:
(A) Contains only premiums paid in advance which accumulate
				  at interest;
(B) Imposes no penalty for withdrawal;
(C) Does not permit funding beyond future required
				  premiums;
(D) Is not marketed or intended as an investment; and
(E) Does not carry a commission, either paid or
				  calculated.
"Solicitation" means the sale or negotiation of any life
				  insurance or annuity product by an insurer of insurance producer in this
				  State.
"Specific appointment" means a prearranged appointment agreed
				  upon by an insurer or a producer and a service member at a definite place and
				  time.
"United States Armed Forces" means all components of the
				  United States army, navy, air force, marine corps, and coast guard.
"VGLI" means a contract offered by Veterans' Group Life
				  Insurance, as authorized by
				  38
				  U.S.C. section 1965
et
				  seq
.