Mississippi Administrative Code › Title 19 - Department of Insurance › Part 2 - Life Insurance › Chapter 14 - (99-2) Life Insurance and Annuities Replacement Regulation (As Amended) › Rule 19-2-14.02 - Definitions

Current through June 25, 2024
A. "Direct-response solicitation" means a
				solicitation through a sponsoring or endorsing entity or individually solely
				through mails, telephone, the Internet or other mass communication
				media.
B. "Existing insurer" means
				the insurance company whose policy or contract is or will be changed or
				affected in a manner described within the definition of
				"replacement."
C. "Existing policy
				or contract" means an individual life insurance policy (policy) or annuity
				contract (contract) in force, including a policy under a binding or conditional
				receipt or a policy or contract that is within an unconditional refund
				period.
D. "Financed purchase"
				means the purchase of a new policy involving the actual or intended use of
				funds obtained by the withdrawal or surrender of, or by borrowing from values
				of an existing policy to pay all or part of any premium due on the new policy.
				For purposes of a regulatory review of an individual transaction only, if a
				withdrawal, surrender or borrowing involving the policy values of an existing
				policy is used to pay premiums on a new policy owned by the same policyholder
				and issued by the same company within four (4) months before or thirteen (13)
				months after the effective date of the new policy, it will be deemed
prima facie
evidence of the policyholder's intent to finance
				the purchase of the new policy with existing policy values. This
prima
				facie
standard is not intended to increase or decrease the monitoring
				obligations contained in Section 4A(5) of this regulation.
E. "Illustration" means a presentation or
				depiction that includes non-guaranteed elements of a policy of life insurance
				over a period of years.
F. "Policy
				summary," for the purposes of this regulation;
1. For policies or contracts other than
				universal life policies, means a written statement regarding a policy or
				contract which shall contain to the extent applicable, but need not be limited
				to, the following information: current death benefit; annual contract premium;
				current cash surrender value; current dividend; application of current
				dividend; and amount of outstanding loan.
2. For universal life policies, means a
				written statement that shall contain at least the following information: the
				beginning and end date of the current report period; the policy value at the
				end of the previous report period and at the end of the current report period;
				the total amounts that have been credited or debited to the policy value during
				the current report period, identifying each by type (e.g., interest, mortality,
				expense and riders); the current death benefit at the end of the current report
				period on each life covered by the policy; the net cash surrender value of the
				policy as of the end of the current report period; and the amount of
				outstanding loans, if any, as of the end of the current report
				period.