§431:10D-502  Definitions.  For the
purposes of this part:



"Direct-response solicitation" means
a solicitation through a sponsoring or endorsing entity or individual solely
through mails, 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 thirteen months after the
effective date of the new policy, it shall 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 section 431:10D-504(1)(E).



"Illustration" means a presentation
or depiction that includes non-guaranteed elements of a policy of life
insurance over a period of years as defined in part IV of this article.



"Policy summary" for the purposes of
this part:



(1)  For policies or contracts other than universal
life policies, means a written statement regarding a policy or contract which
shall contain to the extent applicable, but need not be limited to, the
following information: current death benefit, annual contract premium, current
cash surrender value, current dividend, application of current dividend, and
amount of outstanding loan.



(2)  For universal life policies, means a written
statement that shall contain at least the following information: the beginning
and end date of the current report period; the policy value at the end of the
previous report period and at the end of the current report period; the total
amounts that have been credited or debited to the policy value during the
current report period, identifying each by type (e.g., interest, mortality,
expense, and riders); the current death benefit at the end of the current
report period on each life covered by the policy; the net cash surrender value
of the policy as of the end of the current report period; and the amount of
outstanding loans, if any, as of the end of the current report period.



"Producer" includes any person, firm,
association, or corporation licensed pursuant to article 9A.



"Registered contract" means a
variable annuity contract or variable life insurance policy subject to the
prospectus delivery requirements of the Securities Act of 1933.



"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 producer, or to the proposing insurer if there is no
producer, that by reason of the transaction, an existing policy or contract has
been or is to be:



(1)  Lapsed, forfeited, surrendered or partially
surrendered, assigned to the replacing insurer, or otherwise terminated;



(2)  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;



(3)  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;



(4)  Reissued with any reduction in cash value; or



(5)  Used in a financed purchase.



"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.



"Sales material" means a sales
illustration and any other written, printed, or electronically presented
information created, completed, or provided by the company or producer and used
in the presentation to the policy or contract owner related to the policy or
contract purchased. [L 2000, c 252, pt of §3; am L 2001, c 216, §20; am L 2002,
c 155, §73; am L 2004, c 122, §57]