Ohio Administrative Code › Title 3901 - Department of Insurance › Chapter 3901-1 - General Provisions › Section 3901-1-08 - Unfair and deceptive military sales practices

Current through all regulations passed and filed through July 1, 2024
(A) Purpose
The purpose of this rule is to further
				define unfair trade practices to include dishonest and predatory practices
				involving the sale of certain life insurance products to active duty members of
				the United States armed forces and their families and to set acceptable
				standards for such sales. Sections
				3901.20 and
				3901.21 of the Revised Code,
				respectively, prohibit unfair or deceptive trade practices in the business of
				insurance and define certain acts or practices as unfair or deceptive. Section
				3901.21 of the Revised Code also
				provides that the enumeration of specific unfair or deceptive acts or practices
				in the business of insurance is not exclusive or restrictive or intended to
				limit the powers of the superintendent of insurance to adopt rules to implement
				that section.
(B)
								Authority
This rule is promulgated pursuant to
				the authority vested in the superintendent under section
				3901.041 of the Revised
				Code.
(C) No private cause of
			 action
Nothing herein shall be construed to
				create or imply a private cause of action for a violation of this
				rule.
(D)
			 Application
This rule applies to the solicitations
				and sales of life insurance and annuity products by insurers and insurance
				agents to active duty members of the United States armed forces and their
				families. This rule applies in addition to other statutes and rules governing
				the sale and solicitations of life insurance and annuity products.
(E) Exemptions
(1) This rule
			 shall not apply to solicitations or sales involving:
(a) Credit insurance;
(b) Group life insurance or group annuities
			 where there is no in-person, face-to-face solicitation of individuals by an
			 insurance agent or where the contract or certificate does not include a side
			 fund;
(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 superintendent; or, when a term conversion
			 privilege is exercised among corporate affiliates;
(d) Individual stand-alone health policies,
			 including disability income policies;
(e) Contracts offered by "Service members'
			 Group Life Insurance" (SGLI) or "Veterans' Group Life Insurance" (VGLI), as
			 authorized by
			 38
			 U.S.C. sections 1965 to
			 1979;
(f) Life insurance contracts offered through
			 or by a non-profit military association, qualifying under section 501(c)(23) of
			 the "Internal Revenue Code" (IRC), and which are not underwritten by an
			 insurer; or
(g) 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), 403(b), 408(k) or 408(p) of the IRC, as amended, if
			 established or maintained by an employer;
(iii) A government or church plan defined in
			 section 414 of the IRC, a government 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 IRC;
(iv) A nonqualified deferred compensation
			 arrangement established or maintained by an employer or plan sponsor;
(v) Settlements of or assumptions of
			 liabilities associated with personal injury litigation or any dispute or claim
			 resolution process; or
(vi)
			 Prearranged funeral contracts.