Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 420 - RULES GOVERNING MILITARY SALES PRACTICES › Section 14VAC5-420-20 - 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 meanings unless the context clearly indicates
				  otherwise:
"Active duty" means full-time duty in the active military
				  service of the United States and includes members of the reserve component
				  (National Guard and Reserve) while serving under published orders for active
				  duty or full-time training . The term does not include members of the reserve
				  component who are performing active duty or active duty for training under
				  military calls or orders specifying periods of less than 31 calendar
				  days.
"Basic illustration" means a presentation or depiction that
				  includes both guaranteed and nonguaranteed elements of a policy of life
				  insurance over a period of years.
"Commission" means the State Corporation Commission.
"Department of Defense (DoD) personnel" means all active duty
				  service members and all civilian employees, including nonappropriated fund
				  employees and special government employees of the Department of Defense.
"DoD" means the Department of Defense.
"Door to door" means a solicitation or sales method whereby
				  an insurance agent proceeds randomly or selectively from household to household
				  without prior specific appointment.
"General advertisement" means an advertisement having as its
				  sole purpose the promotion of the reader's or viewer's interest in the concept
				  of insurance, or the promotion of the insurer or the insurance agent.
"Insurer" means an insurance company required to be licensed
				  in the Commonwealth of Virginia to provide life insurance products, including
				  annuities.
"Insurance agent" means a person required to be licensed in
				  the Commonwealth of Virginia to sell, solicit or negotiate life insurance,
				  including annuities.
"Known" or "knowingly" means, depending on its use herein,
				  the insurance agent or insurer had actual awareness, or in the exercise of
				  ordinary care should have known, at the time of the act or practice complained
				  of, that the person solicited is a service member.
"Life insurance" means insurance coverage on human lives
				  including benefits of endowment and annuities, and may include benefits in the
				  event of death or dismemberment by accident and benefits for disability income,
				  and unless otherwise specifically excluded, includes individually issued
				  annuities.
"Military installation" means any federally owned, leased, or
				  operated base, reservation, post, camp, building, or other facility to which
				  service members are assigned for duty, including barracks, transient housing,
				  and family quarters.
"MyPay" is a Defense Finance and Accounting Service web-based
				  system that enables service members to process certain discretionary pay
				  transactions or provide updates to personal information data elements without
				  using paper forms.
"Service member" means any active duty officer (commissioned
				  and warrant) or enlisted member of the United States Armed Forces.
"SGLI" means Servicemembers Group Life Insurance, as
				  authorized by 38 USC § 1965 et seq.
"Side fund" means a fund or reserve that is part of or
				  otherwise attached to a life insurance policy (excluding individually issued
				  annuities) by rider, endorsement or other mechanism that accumulates premium or
				  deposits with interest or by other means. The term does not include:
1. Accumulated value or cash value or
				secondary guarantees provided by a universal life policy;
2. Cash values provided by a whole life
				policy which are subject to standard nonforfeiture law for life insurance;
				or
3. A premium deposit fund that:
a. Contains only premiums paid in advance
				that accumulate at interest;
b.
				Imposes no penalty for withdrawal;
c. Does not permit funding beyond future
				required premiums;
d. Is not
				marketed or intended as an investment; and
e. Does not carry a commission, either paid
				or calculated.
"Specific appointment" means a prearranged appointment agreed
				  upon by both parties and definite as to place and time.
"United States Armed Forces" or "Armed Forces" means all
				  components of the Army, Navy, Air Force, Marine Corps, and Coast Guard.
"VGLI" means Veterans' Group Life Insurance, as authorized by
				  38 USC § 1965 et seq.