Utah Admin. Code R590-242-3 - Definitions

Te r m s used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:

(1)

(a) "Active duty" means full-time duty in the active military service of the United States including members of the National Guard and Reserve, while serving under published orders for active duty or full-time training.

(b) "Active duty" 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.

(2) "Department of Defense personnel" and "DOD personnel" mean all active duty service members and all civilian employees, including nonappropriated fund employees and special government employees, of the DOD.

(3) "DOD" means the U.S. Department of Defense.

(4) "Door to door" means a solicitation or sales method where an insurance producer proceeds randomly or selectively from household to household without a specific appointment.

(5) "General advertisement" means an advertisement with its purpose being the promotion of the reader's or viewer's interest in the concept of insurance, the promotion of the insurer, or the promotion of an insurance producer.

(6) "Known" or "knowingly" means, depending on its usage, an insurance producer or insurer having actual awareness, or in the exercise of ordinary care should have known that the person solicited:

(a) is a service member; or

(b) is a service member with a pay grade of E-4 or below.

(7) "Insurable needs" means the risks associated with premature death, taking into consideration the financial obligations and immediate and future cash needs of the applicant's estate, survivors or dependents.

(8) "Military installation" means a 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.

(9) "MyPay" means the 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.

(10) "Other military survivor benefits" includes the following benefits:

(a) the death gratuity;

(b) funeral reimbursement;

(c) transition assistance;

(d) survivor and dependents' educational assistance;

(e) dependency and indemnity compensation;

(f) TRICARE healthcare benefits;

(g) survivor housing benefits and allowance;

(h) federal income tax forgiveness; and

(i) Social Security survivor benefits.

(11) "SGLI" means Servicemembers' Group Life Insurance as authorized by 38 U.S.C. Section 1965 et seq.

(12) "Service member" means an active duty officer, commissioned and warrant, or enlisted member of the United States Armed Forces.

(13)

(a) "Side fund" means a fund or reserve that is part of, or otherwise attached to, a life insurance policy, except for individually issued annuities, by rider, endorsement, or other mechanism that accumulates premium or deposits with interest or by other means.

(b) "Side fund" does not include:

(i) accumulated value, cash value, or secondary guarantees provided by a universal life policy;

(ii) cash value provided by a whole life policy subject to standard nonforfeiture law for life insurance; or

(iii) a premium deposit fund that:

(A) contains only premiums paid in advance that accumulate 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.

(14)

(a) "Solicitation" means an offer to a person in this state, either directly or through a third party, to effect insurance.

(b) "Solicitation" does not mean:

(i) a general advertisement;

(ii) a direct mailing;

(iii) internet marketing; or

(iv) telephone marketing, provided the caller explicitly and conspicuously discloses that the product that is the subject of the call is life insurance.

(15) "Specific appointment" means a prearranged appointment agreed upon by both parties and definite as to place and time.

(16) "United States Armed Forces" means all components of the Army, Navy, Air Force, Marine Corps, and Coast Guard.

(17) "VGLI" means Veterans' Group Life Insurance as authorized by 38 U.S.C. Section 1965 et seq.

Notes

Utah Admin. Code R590-242-3

Amended by Utah State Bulletin Number 2023-23, effective 11/21/2023