Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 89 - Regulation 70-Replacement of Life Insurance and Annuities › Subchapter A - General Provisions › Section XIII-8903 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
Direct-Response Solicitation
-a
					 solicitation through a sponsoring or endorsing entity or individual
					 solicitation solely through mails, telephone, the internet or other mass
					 communication media.
Electronic Means
-relating to sales
					 presentations conducted by a producer utilizing technology having electrical,
					 digital, magnetic, wireless, optical, electromagnetic, or similar capabilities
					 where all signatures are obtained via electronic signature technology.
Existing Contract
-an individual annuity
					 contract in force, including a contract that is within an unconditional refund
					 period.
Existing Insurer
-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
-an individual life
					 insurance policy in force, including a policy under a binding or conditional
					 receipt or a policy that is within an unconditional refund period.
Financed Purchase
-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 four 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
					 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 §8909. A.5 of this regulation.
Illustration
-a presentation or depiction
					 that includes non-guaranteed elements of a policy of life insurance over a
					 period of years as defined in Regulation 55 of the Department of
					 Insurance.
Policy Summary
-for the purposes of this
					 regulation, 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:
a. the beginning and end date of the current report
					 period;
b. the policy value at the end of the previous report
					 period and at the end of the current report period;
c. 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);
d. the current death benefit at the end of the current
					 report period on each life covered by the policy;
e. the net cash surrender value of the policy as of the end
					 of the current report period; and
f. the amount of outstanding loans, if any, as of the end
					 of the current report period.
Producer
-for the purposes of this
					 regulation, means agents and brokers.
Registered Contract
-a variable annuity
					 contract or variable life insurance policy subject to the prospectus delivery
					 requirements of the Securities Act of 1933.
Replacement
-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; or
2. converted to reduced paid-up insurance, continued as
					 extended term insurance, or otherwise reduced in value by the use of
					 non-forfeiture benefits or other policy values; or
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; or
4. reissued with any reduction in cash value; or
5. used in a financed purchase.
Replacing Insurer
-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
-a sales illustration and
					 any other written, printed or electronically presented information created, or
					 completed or provided by the company or producer and used in the presentation
					 to the policy or contract owner related to the policy or contract
					 purchased.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 22:3 and
					 R.S.
					 22:644.1.