Section 20-1241 - DefinitionsIn this article, unless the context otherwise requires:
1. "Contract" means a contract for the purchase of an annuity.2. "Direct response solicitation" means a solicitation to purchase a policy or contract solely through mail, telephone, the internet or other mass communication media.3. "Direct solicitation" means personal contact to solicit someone to purchase a policy or contract, but 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 a group assisting the individual with selection of investment options offered by a single insurer in connection with enrolling that individual.4. "Existing insurer" means the insurer whose policy or contract is or will be replaced.5. "Existing policy or contract" means a policy or contract that is in force and includes a policy under a binding or conditional receipt and a policy or contract that is within an unconditional refund period.6. "Financed purchase" means the purchase of a new policy involving the actual or intended use of monies 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 the 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 insurer within four months before or thirteen months after the effective date of the new policy, it is 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 of section 20-1241.04, subsection B, paragraph 5.7. "Illustration" means a presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years.8. "Insurance producer" has the same meaning prescribed in section 20-281.9. "Policy summary" means a description of a policy or contract that meets the requirements in section 20-1241.02 and prescribed by the director.10. "Registered contract" means a variable annuity contract or variable life insurance policy subject to the prospectus delivery requirements of the securities act of 1933 (P.L. 107-377; 15 United States Code sections 77a through 77aa).11. "Replaced" or "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 insurance producer, or to the proposing insurer if there is no insurance producer, that by reason of the transaction an existing policy or contract has been or is to be: (a) Lapsed, forfeited, surrendered or partially surrendered, assigned to the replacing insurer or otherwise terminated.(b) Converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture benefits or other policy values.(c) Amended so as to effect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid.(d) Reissued with any reduction in cash value.(e) Used in a financed purchase.12. "Replacing insurer" means the insurer that issues or proposes to issue a new policy or contract that replaces an existing policy or contract or is a financed purchase.13. "Sales material" means a sales illustration and any other written, printed or electronically presented information that is created, completed or provided by an insurer or insurance producer, that is used in the presentation to the policy or contract owner and that is related to the policy or contract purchased.