Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 420 - RULES GOVERNING MILITARY SALES PRACTICES › Section 14VAC5-420-50 - Prohibited practices regardless of location

Current through Register Vol. 40, No. 24, July 15, 2024
A. The following acts or practices by an
				insurer or insurance agent are considered to be corrupt practices, improper
				influences or inducements that are prohibited regardless of location:
1. Submitting, processing or assisting in the
				submission or processing of any allotment form or similar device used by the
				United States Armed Forces to direct a service member's pay to a third party
				for the purchase of life insurance. The foregoing includes, but is not limited
				to, using or assisting in using a service member's MyPay account or other
				similar internet or electronic medium for such purposes. This subdivision does
				not prohibit assisting a service member by providing insurer or premium
				information necessary to complete any allotment form.
2. Knowingly receiving funds from a service
				member for the payment of premium from a depository institution with which the
				service member has no formal banking relationship. For purposes of this
				section, a formal banking relationship is established when the depository
				institution:
a. Provides the service member a
				deposit agreement and periodic statements and makes the disclosures required by
				the Truth in Savings Act ( 12 USC § 4301 et seq.) and the regulations
				promulgated thereunder; and
b.
				Permits the service member to make deposits and withdrawals unrelated to the
				payment or processing of insurance premiums.
3. Employing any device or method or entering
				into any agreement whereby funds received from a service member by allotment
				for the payment of insurance premiums are identified on the service member's
				Leave and Earnings Statement or equivalent or successor form as "savings" or
				"checking" and where the service member has no formal banking relationship as
				defined in subdivision A 2 of this section.
4. Entering into any agreement with a
				depository institution for the purpose of receiving funds from a service member
				whereby the depository institution, with or without compensation, agrees to
				accept direct deposits from a service member with whom it has no formal banking
				relationship.
5. Using DoD
				personnel, directly or indirectly, as a representative or agent in any official
				or unofficial capacity with or without compensation with respect to the
				solicitation or sale of life insurance to service members who are junior in
				rank or grade, or to the family members of such personnel.
6. Offering or giving anything of value,
				directly or indirectly, to DoD personnel to procure their assistance in
				encouraging, assisting or facilitating the solicitation or sale of life
				insurance to another service member.
7. Knowingly offering or giving anything of
				value to a service member for his attendance to any event where an application
				for life insurance is solicited.
8.
				Advising a service member to change his income tax withholding or state of
				legal residence for the sole purpose of increasing disposable income to
				purchase life insurance.