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 114-8-3 - Exemptions

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Unless otherwise
				specifically included, this rule shall not apply to transactions involving:
a. Credit life insurance;
b. Group life insurance or group annuities where
				there is no direct solicitation of individuals by an insurance producer. "Direct
				solicitation" does not include any group meeting held by an insurance producer
				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 section 8 of this rule;
c. Group life insurance and annuities used to fund
				prearranged funeral contracts;
d. An
				application to the existing insurer that issued the existing policy or contract when
				a contractual change or a conversion privilege is being exercised; when the existing
				policy or contract is being replaced by the same insurer pursuant to a program filed
				with and approved by the commissioner; or when a term conversion privilege is
				exercised among corporate affiliates;
e.
				Proposed life insurance that is to replace life insurance under a binding or
				conditional receipt issued by the same company;
f.
1. Policies
				or contracts used to fund (A) an employee pension or welfare benefit plan that is
				covered by the Employee Retirement and Income Security Act (ERISA); (B) a plan
				described by Sections 401(a), 401(k) or 403(b) of the Internal Revenue Code (IRC),
				where the plan, for purposes of ERISA, is established or maintained by an employer;
				(C) a governmental or church plan defined in Section 414 of the IRC, a governmental
				or church welfare benefit plan, or a deferred compensation plan of a state or local
				government or tax exempt organization under Section 457 of the IRC; or (D) a
				nonqualified deferred compensation arrangement established or maintained by an
				employer or plan sponsor.
2.
				Notwithstanding paragraph 1 of this subdivision, this rule applies 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 pre-tax 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 insurance producer for the purchase of a contract or policy. As used in this
				subsection, "direct solicitation" does not include any group meeting held by an
				insurance producer 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;
g. 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;
h. Existing life insurance that
				is a non-convertible term life insurance policy that will expire in five (5) years
				or less and cannot be renewed;
i.
				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 rule; or
j. Structured settlements.