West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-08 - Replacement Of Life Insurance Policies And Annuity Contracts › Section 114-8-2 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. "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.
2.2. "Existing
				insurer" means the insurance company whose policy or contract is or will be changed
				or affected in a manner described within the definition of "replacement."
2.3. "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.
2.4. "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 subdivision
				e., subsection 5.1. of this rule.
2.5.
				"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
				114CSR11C-3.8.
2.6. "Policy summary"
				means:
a. For policies or contracts other than
				universal life policies, a written statement regarding a policy or contract which
				contains, to the extent applicable, but is not necessarily 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.
b. For universal life policies, a
				written statement that contains 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.