Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 25 - LIFE AND ANNUITIES › Part 4 - Life Insurance and Annuities Replacement (formerly Insurance Regulation 29) (230-RICR-20-25-4) › Section 230-RICR-20-25-4.3 - Definitions

Current through June 14, 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 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 §
										4.5(A)(1)(e)   of this
				  Part.
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 R.I. Gen. Laws Chapter
				  27-62.
F. "Policy summary," for the
				  purposes of this Part;
1. For policies or
				  contracts other than universal life policies, means 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, means 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.