Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 919 - LIFE INSURANCE AND ANNUITIES REPLACEMENT › Section 031-919-2 - Definitions

Current through 2024-29, July 17, 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 as defined in Bureau of Insurance Rule
				Chapter 910: "Life Insurance Illustrations."
F. "Policy summary," for the purposes of this
				rule, means;
(1) For policies or contracts
				other than universal life policies, 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, 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.