Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 400 - Life, Annuities and Health › Chapter 5 - Advertising and Material Disclosures › Section 20 CSR 400-5.305 - Scope and Definitions for Military Sales Practices Regulation

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets out the scope of the military
				  sales practices regulation in
				  20
				  CSR 400-5.305 to
				  20 CSR
				  400-5.310 and provides definitions to aid in the
				  interpretation of the rules.
(1) Applicability of Rules. The rules in
				20
				CSR 400-5.305 to
				20 CSR
				400-5.310 are based upon the Military Sales Practices
				Model Regulation adopted by the National Association of Insurance Commissioners
				(NAIC), published July 2007, fulfilling the intent of the Military Personnel
				Financial Services Act,
				Pub.
				L. No. 109-290,
				section
				3 (1)(C) (2006).
(A) The rules in
				20
				CSR 400-5.305 to
				20 CSR
				400-5.310 apply to insurers soliciting, offering to
				sell or selling any life or annuity product, except those described in
				subsection (1)(B), to a member of the United States Armed Forces, wherever
				located. The rules shall be read together with Chapter 536, RSMo.
(B) The rules in
				20
				CSR 400-5.305 to
				20 CSR
				400-5.310 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 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; 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;
4. Individual stand-alone health policies,
				including disability income policies;
5. Contracts offered by Servicemembers' Group
				Life Insurance (SGLI) or Veterans' Group Life Insurance (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
Internal Revenue Code
(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) or 408(p) of the IRC,
				as amended, if established or maintained by an employer and there is no
				in-per-son, face-to-face solicitation of individuals by an insurance
				producer;
C. A government or church
				plandefined 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, if there is no in-per-son,
				face-to-face solicitation of individuals by an insurance producer;
D. A nonqualified deferred compensation
				arrangement established or maintained by an employer or plan sponsor;
E. Settlements of or assumptions of
				liabilities associated with personal injury litigation or any dispute or claim
				resolution process; or
F.
				Prearranged funeral contracts.
(C) The rules in
				20
				CSR 400-5.305 to
				20 CSR
				400-5.310 shall not apply to:
1. General advertisements, direct mail and
				Internet marketing; and
2.
				Telephone marketing, provided the caller explicitly and conspicuously discloses
				that the call concerns life insurance and makes no statement that avoids the
				clear and unequivocal statement that life insurance is the subject matter of
				the solicitation.
3. Nothing in
				this subsection shall be construed to exclude an insurer or insurance producer
				from
				20
				CSR 400-5.305 to
				20 CSR
				400-5.310 in any in-person, face-to-face meeting
				established as a result of the marketing that is exempt under this
				paragraph.
(D) 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.