Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 41 - RULES GOVERNING ADVERTISEMENT OF LIFE INSURANCE AND ANNUITIES › Section 14VAC5-41-20 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meaning unless the context clearly indicates
				  otherwise:
"Advertisement" means any marketing communication that is
				  oral, printed, written, or other material of any type from any source that is
				  used by an agent or insurer and that is designed to create or has the effect of
				  creating public interest in life insurance or annuities, or induces or tends to
				  induce the public to purchase, increase, modify, reinstate, borrow on,
				  surrender, replace, or retain a policy including, but not limited to:
1. Printed or published material, audiovisual
				material, mailing envelopes, or descriptive literature of an insurer or agent
				used in direct mail, newspapers, magazines, radio, telephone and television
				scripts, billboards or similar displays, websites and other Internet displays
				or communications, social media, or other forms of electronic
				communications;
2. Descriptive
				literature and sales aids of all kinds, authored by the insurer, its agents, or
				third parties, issued, distributed, or used by an insurer or agent including
				but not limited to circulars, booklets, illustrations, form letters, pamphlets,
				brochures, and books or portions thereof;
3. Materials, statements, or communications
				of any type used for the recruitment, training, and education of an insurer's
				sales personnel and agents that are designed to be used or are used to induce
				the public to purchase, increase, modify, reinstate, borrow on, surrender,
				replace, or retain a policy; or
4.
				Prepared or extemporaneous sales talks, presentations, and material for use or
				used by agents.
"Advertisement" does not include:
1. Communications or materials used within an
				insurer's own organization, not used as a sales aid, and not intended to be
				disseminated to the public;
2.
				Communications with policyholders other than material urging them to purchase,
				increase, modify, reinstate, borrow on, surrender, replace, or retain a policy;
				or
3. A general announcement from a
				group or blanket policyholder to eligible individuals on an employment or
				membership list that a policy or program has been written or arranged; provided
				the announcement clearly indicates that it is preliminary to the issuance of a
				booklet explaining the proposed coverage.
"Agent" means a person defined in § 38.2-1800 of the
				  Code of Virginia.
"Commission" means the State Corporation Commission.
"Contribution principle" means the dividend determination
				  principle wherein aggregate divisible surplus is distributed or illustrated to
				  be distributed among participating policies in the same proportion as the
				  policies are considered to have contributed to divisible surplus.
"Determinable policy elements" means elements that are
				  derived from processes or methods that are guaranteed at issue and not subject
				  to company discretion, but where the values or amounts cannot be determined
				  until some point after issue. These elements include the premiums, credited
				  interest rates (including any bonus), benefits, values, noninterest based
				  credits, charges or elements of formulas used to determine any of these. These
				  elements may be described as guaranteed but not determined at issue. An element
				  is considered determinable if it was calculated from underlying determinable
				  policy elements only, or from both determinable and guaranteed policy
				  elements.
"Guaranteed policy elements" means the premiums, benefits,
				  values, credits or charges under a policy, or elements of formulas used to
				  determine any of these that are guaranteed and determined at issue.
"Home office" means either the insurer's home office or the
				  principal executive or administrative office of the insurer from which
				  policyholder services available to the citizens of this Commonwealth are
				  directed or administered.
"Insurer" means any person, corporation, association,
				  partnership, reciprocal exchange, interinsurer, Lloyd's, fraternal benefit
				  society, or any other legal entity that is defined as an "insurer" in the Code
				  of Virginia.
"Nonguaranteed policy elements" means the premiums, credited
				  interest rates (including any bonus), benefits, values, noninterest based
				  credits, charges or elements of formulas used to determine any of these, that
				  are subject to company discretion and are not guaranteed at issue. An element
				  is considered nonguaranteed if any of the underlying nonguaranteed elements are
				  used in its calculation.
"Policy" means any policy, plan, certificate including a
				  fraternal benefit certificate, contract, agreement, statement of coverage,
				  rider, or endorsement that provides for life insurance or annuity benefits
				  unless otherwise specifically defined in this chapter.
"Preneed funeral contract" means any agreement where payment
				  is made by the consumer prior to the receipt of services or supplies contracted
				  for, that evidences arrangements prior to death for (i) the providing of
				  funeral services or (ii) the sale of funeral supplies.
Statutory Authority