Iowa Administrative Code › Agency 191 - Insurance Division › Unfair Trade Practices › Chapter 16 - Replacement of Life Insurance and Annuities › Rule 191-16.22 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
"Commissioner"
means the Iowa insurance
				  commissioner.
"Contract"
means an individual annuity
				  contract.
"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.
"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."
"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.
"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 a 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 4 months before or 13 months after the effective
				  date of the new policy, it will be deemed prima facie evidence of the
				  policyholder's intent to purchase the new policy with existing policy values.
				  This prima facie standard is not intended to increase or decrease the
				  monitoring obligations contained in paragraph
				  16.25(1)
"e."
"Illustration"
means a presentation or
				  depiction that includes nonguaranteed elements of a policy of life insurance
				  over a period of years as defined in 191-Chapter 14.
"Policy"
means an individual life insurance
				  policy.
"Policy summary,"
for the purposes of these
				  rules, means:
1. For policies or
				contracts other than universal life policies, a written statement regarding a
				policy or contract that 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, 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.
"Producer"
means a person licensed under
				  Iowa Code chapter 522B.
"Registered contract"
means a variable
				  annuity contract or variable life insurance policy subject to the prospectus
				  delivery requirements of the Securities Act of 1933.
"Replacement"
means a transaction in which a
				  new policy or contract is to be purchased, and it is known or should be known
				  to the proposing producer, or to the proposing insurer if there is no producer,
				  that by reason of the transaction, an existing policy or contract has been or
				  is to be:
1. Lapsed, forfeited,
				surrendered or partially surrendered, assigned to the replacing insurer or
				otherwise terminated;
2. Converted
				to reduced paid-up insurance, continued as extended term insurance, or
				otherwise reduced in value by the use of nonforfeiture benefits or other policy
				values;
3. Amended so as to effect
				either a reduction in benefits or in the term for which coverage would
				otherwise remain in force or for which benefits would be paid;
4. Reissued with any reduction in cash value;
				or
5. Used in a financed
				purchase.
"Replacing insurer"
means the insurance
				  company that issues or proposes to issue a new policy or contract that replaces
				  an existing policy or contract or is a financed purchase.
"Sales material"
means a sales illustration
				  and any other written, printed or electronically presented information created,
				  completed or provided by the company or producer that is used in the
				  presentation to the policy or contract owner related to the policy or contract
				  that is purchased.