Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.3 - Replacement of Life Insurance › Rule 6.6.304 - EXEMPTIONS

Current through Register Vol. 13, July 5, 2024
(1) Unless otherwise specifically included,
				this subchapter shall not apply to transactions involving:
(a) credit life insurance;
(b) group life insurance or group annuities
				where there is no direct solicitation of individuals by an insurance producer.
				Direct solicitation shall not include any group meeting held by an insurance
				producer solely for the purpose of educating or enrolling individuals or, when
				initiated by an individual member of the group, assisting with the selection of
				investment options offered by a single insurer in connection with enrolling
				that individual. Group life insurance or group annuity certificates marketed
				through direct response solicitation shall be subject to the provisions of ARM
				6.6.307;
(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;
(d) proposed life insurance that is to
				replace life insurance under a binding or conditional receipt issued by the
				same company;
(e) policies or
				contracts used to fund:
(i) an employee
				pension or welfare benefit plan that is covered by the Employee Retirement and
				Income Security Act (ERISA) ;
(ii)
				a plan described by section 401(a) , 401(k) or 403(b) of the Internal Revenue
				Code, where the plan, for purposes of ERISA, is established or maintained by an
				employer;
(iii) a governmental or
				church plan defined in section 414, a governmental 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 Internal Revenue Code;
				or
(iv) a nonqualified deferred
				compensation arrangement established or maintained by an employer or plan
				sponsor.
(f)
				notwithstanding (1) (e) , this subchapter shall apply to policies or contracts
				used to fund any plan or arrangement that is funded solely by contributions an
				employee elects to make, whether on a pre-tax or after-tax basis, and where the
				insurance company has been notified that plan participants may choose from
				among two or more insurers and there is a direct solicitation of an individual
				employee by an insurance producer for the purchase of a contract or policy. As
				used in this rule, direct solicitation shall not include any group meeting held
				by an insurance producer solely for the purpose of educating individuals about
				the plan or arrangement or enrolling individuals in the plan or arrangement or,
				when initiated by an individual employee, assisting with the selection of
				investment options offered by a single insurer in connection with enrolling
				that individual employee;
(g)
				existing life insurance that is a non-convertible term life insurance policy
				that will expire in five years or less and cannot be renewed;
(h) where new coverage is provided under a
				life insurance policy or contract and the cost is borne wholly by the insured's
				employer or by an association for which the insured is a member; or
(i) immediate annuities that are purchased
				with proceeds from an existing contract. Immediate annuities purchased with
				proceeds from an existing policy are not exempted from the requirements of this
				subchapter; or
(j) structured
				settlements.