The following words and terms when used in this chapter shall have the following meaning unless the context clearly indicates otherwise:
"Agent" or "producer" means an individual or business entity that sells, solicits, or negotiates contracts of insurance or annuity in this Commonwealth.
"Commission" means the State Corporation Commission.
"Direct-response solicitation" means a solicitation through a sponsoring or endorsing entity or individually, made solely through mail, telephone, the Internet or other mass communication media.
"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."
"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.
"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 months before or 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 14VAC5-30-60 A 5.
"Guaranteed elements" means the premiums, benefits, values, credits or charges under a policy of life insurance or an annuity contract that are guaranteed and determined at issue.
"Illustration" means a presentation or depiction that includes nonguaranteed elements of a life insurance policy or an annuity contract over a period of years.
"Insurer" means any insurance company required to be licensed under the laws of this Commonwealth.
"Marketing communication" or "sales material" means printed, written, electronic, or other material of any type from any source which is used by an agent or insurer and which is designed to create or has the effect of creating public interest in life insurance or annuities, or in an insurer or agent, or induces or tends to induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace or retain a policy or contract including, but not limited to:
"Marketing communication" or "sales material" for the purpose of this chapter does not include:
"Nonguaranteed elements" means the premiums, benefits, values, credits, or charges under a life insurance policy or an annuity contract that are not guaranteed or not determined at issue.
"Policy summary" means:
"Replacing insurer" means the insurance company that issues or proposes to issue a new policy or contract that replaces an existing policy or contract or is a financed purchase.
"Registered contract" means a variable annuity contract or variable life insurance policy subject to the prospectus delivery requirements of the Securities Act of 1933 (15 USC § 77a et seq.).
"Replacement" means a transaction in which a new policy or contract is to be purchased, and it is known or should be known to the proposing agent, or the proposing insurer if there is no agent, that by reason of the transaction, an existing policy or contract has been or is to be:
"Universal life policy" means a life insurance policy in which separately identified interest credits (other than in connection with dividend accumulation, premium deposit funds, or other supplementary accounts) and mortality and expense charges are made to the policy. A universal life policy may provide for other credits and charges, such as charges for the cost of benefits provided by the rider.
14 Va. Admin. Code § 5-30-20
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.