Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 30 - RULES GOVERNING LIFE INSURANCE AND ANNUITY REPLACEMENTS › Section 14VAC5-30-30 - Exemptions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Unless otherwise
				specifically included, this chapter shall not apply to:
1. Credit life insurance;
2. Group life insurance or group annuities
				where there is no direct solicitation of individuals by an agent. Direct
				solicitation shall not include any group meeting held by an agent solely for
				the purpose of educating or enrolling individuals or, when initiated by an
				individual member of the group, assisting with the selection of investment
				options offered by a single insurer in connection with enrolling that
				individual. Group life insurance or group annuity certificates marketed through
				direct response solicitation shall be subject to the provisions of
				14VAC5-30-70;
3. Group life insurance and annuities used to
				fund prearranged funeral contracts;
4. 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 plan filed and
				approved by the commission, or when a term conversion privilege is exercised
				among corporate affiliates;
5.
				Proposed life insurance that is to replace life insurance under a binding or
				conditional receipt issued by the same company;
6.
a.
				Policies or contracts used to fund (i) an employee pension or welfare benefit
				plan that is covered by the Employee Retirement Income Security Act (ERISA) (
				29 USC § 1001 et seq.); (ii) a plan described by 26 USC §§
				401(a), 401(k) or 403(b) of the Internal Revenue Code, where the plan, for
				purposes of ERISA, is established or maintained by an employer; (iii) a
				governmental or church plan defined in 26 USC § 414 of the Internal
				Revenue Code, a governmental or church welfare benefit plan, or a deferred
				compensation plan of a state or local government or tax-exempt organization
				under 26 USC § 457 of the Internal Revenue Code; or (iv) a nonqualified
				deferred compensation arrangement established or maintained by an employer or
				plan sponsor.
b. Notwithstanding
				subdivision a of this subsection, this chapter shall apply to policies or
				contracts used to fund any plan or arrangement that is funded solely by
				contributions an employee elects to make, whether on a pretax or after-tax
				basis, and where the insurer has been notified that plan participants may
				choose from among two or more insurers and there is a direct solicitation of an
				individual employee by an agent for the purchase of a policy or contract. As
				used in this subsection, direct solicitation shall not include any group
				meeting held by an agent solely for the purpose of educating individuals about
				the plan or arrangement or enrolling individuals in the plan or arrangement or,
				when initiated by an individual employee, assisting with the selection of
				investment options offered by a single insurer in connection with enrolling
				that individual employee;
7. Where new coverage is provided under a
				life insurance policy or contract and the cost is borne wholly by the insured's
				employer or by an association of which the insured is a member;
8. Existing life insurance that is a
				nonconvertible term life insurance policy that will expire in five years or
				less and cannot be renewed;
9.
				Immediate annuities that are purchased with proceeds from an existing contract.
				Immediate annuities purchased with proceeds from an existing policy are not
				exempted from the requirements of this chapter; or
10. Structured settlements.