North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-14 - Military Sales Practices › Section 45-04-14-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "Active duty" means full-time duty in the active military
				  service of the United States and includes members of the reserve component such
				  as the national guard and reserve while serving under published orders for
				  active duty or full-time training. The term does not include members of the
				  reserve component who are performing active duty or active duty for training
				  under military calls or orders specifying periods of less than thirty-one
				  calendar days.
2. "Commissioner" means the North Dakota insurance
				  commissioner.
3. "DoD personnel" means all active duty service members and
				  all civilian employees, including nonappropriated fund employees and special
				  government employees of the department of defense.
4. "Door to door" means a solicitation or sales method
				  whereby an insurance producer proceeds randomly or selectively from household
				  to household without prior specific appointment.
5. "General advertisement" means an advertisement having as
				  its sole purpose the promotion of the reader's or viewer's interest in the
				  concept of insurance, or the promotion of the insurer or the insurance
				  producer.
6. "Insurance producer" means a person required to be
				  licensed under the laws of this state to sell, solicit, or negotiate life
				  insurance, including annuities.
7. "Insurer" means an insurance company required to be
				  licensed under the laws of this state to provide life insurance products,
				  including annuities.
8. "Known" or "knowingly" means the insurance producer or
				  insurer had actual awareness or in the exercise of ordinary care should have
				  known at the time of the act or practice complained of that the person
				  solicited is a service member.
9. "Life insurance" means insurance coverage on human lives,
				  including benefits of endowment, annuities, benefits in the event of death or
				  dismemberment by accident, and benefits for disability income.
10. "Military installation" means any federally owned,
				  leased, or operated base, reservation, post, camp, building, or other facility
				  to which service members are assigned for duty, including barracks, transient
				  housing, and family quarters.
11. "MyPay" is a defense finance and accounting service
				  (DFAS) web-based system that enables service members to process certain
				  discretionary pay transactions or provide updates to personal information data
				  elements without using paper forms.
12. "Service member" means any active duty commissioned or
				  warrant officer or enlisted member of the United States armed forces.
13. "SGLI" means the United States department of veterans
				  affairs servicemembers' group life insurance program of low cost group life
				  insurance for servicemembers on active duty, ready reservists, members of the
				  national guard, members of the commissioned corps of the national oceanic and
				  atmospheric administration and the public health service, cadets and midshipmen
				  of the four service academies, and members of the reserve officer training
				  corps.
14. "Side fund" means a fund or reserve, excluding
				  individually issued annuities, that is part of or otherwise attached to a life
				  insurance policy by rider, endorsement, or other mechanism which accumulates
				  premium or deposits with interest or by other means. The term does not include:
a. Accumulated value or cash value or secondary guarantees
				  provided by a universal life policy;
b. Cash values provided by a whole life policy which are
				  subject to standard nonforfeiture law for life insurance; or
c. A premium deposit fund which:
(1) Contains only premiums paid in advance which accumulate
				  at interest;
(2) Imposes no penalty for withdrawal;
(3) Does not permit funding beyond future required premiums;
(4) Is not marketed or intended as an investment; and
(5) Does not carry a commission, either paid or calculated.
15. "Specific appointment" means a prearranged appointment
				  agreed upon by both parties and definite as to place and time.
16. "United States armed forces" means all components of the
				  army, navy, air force, marine corps, and coast guard.
17. "VGLI" means the United States department of veterans
				  affairs veterans' group life insurance program of post-separation insurance
				  which allows servicemembers to convert their SGLI coverage to renewable term
				  insurance.
General Authority: NDCC 26.1-01-08, 28-32-02
Law Implemented: NDCC 26.1-04,
					 26.1-33-02