Ala. Admin. Code r. 482-1-140-.05 - Definitions
As used in this chapter, these words and terms have the following meanings, unless the context clearly indicates otherwise:
(a) "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.
(b) "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.
(c) "Door to Door" means a solicitation or
sales method whereby an insurance producer proceeds randomly or selectively
from household to household without prior specific appointment.
(d) "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 producer.
(e)
"Insurer" means an insurance company required to be licensed under the laws of
this state to provide life insurance products, including annuities. For purpose
of this chapter, "insurer" also includes a fraternal benefit society licensed
pursuant to Chapter 34 of the Alabama Insurance Code and a mutual aid
association licensed pursuant to Chapter 30 of the Alabama Insurance
Code.
(f) "Insurance producer"
means a person required to be licensed under the laws of this state to sell,
solicit or negotiate life insurance, including annuities.
(g) "Known" or "Knowingly" means, depending
on its use herein, the insurance producer 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 either of the following:
1. A service member.
2. A service member with a pay grade of E-4
or below.
(h) "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.
(i) "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.
(j) "MyPay" is a Defense Finance and
Accounting Service (DFAS) 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.
(k) "Service Member" means any active duty
officer (commissioned and warrant) or enlisted member of the United States
Armed Forces.
(l) "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 which accumulates premium or deposits with interest or by other
means. The term does not include the following:
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.
3. A premium deposit
fund which meets all of the following:
i.
Contains only premiums paid in advance which accumulate at interest.
ii. Imposes no penalty for
withdrawal.
iii. Does not permit
funding beyond future required premiums.
iv. Is not marketed or intended as an
investment.
v. Does not carry a
commission, either paid or calculated.
(m) "Specific Appointment" means a
prearranged appointment agreed upon by both parties and definite as to place
and time.
(n) "United States Armed
Forces" means all components of the Army, Navy, Air Force, Marine Corps, and
Coast Guard.
Notes
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, ยงยง 27-2-17, 27-12-1 et. seq.
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