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

"Direct-response solicitation" meansa solicitation through a sponsoring or endorsing entity or individual solelythrough mails, telephone, the Internet, or other mass communication media.

"Existing insurer" means theinsurance company whose policy or contract is or will be changed or affected ina manner described within the definition of replacement.

"Existing policy or contract" meansan individual life insurance policy (policy) or annuity contract (contract) inforce, including a policy under a binding or conditional receipt or a policy orcontract that is within an unconditional refund period.

"Financed purchase" means thepurchase of a new policy involving the actual or intended use of funds obtainedby the withdrawal or surrender of, or by borrowing from values of an existingpolicy to pay all or part of any premium due on the new policy.  For purposesof a regulatory review of an individual transaction only, if a withdrawal,surrender, or borrowing involving the policy values of an existing policy isused to pay premiums on a new policy owned by the same policyholder and issuedby the same company within four months before or thirteen months after theeffective date of the new policy, it shall be deemed prima facie evidence ofthe policyholder's intent to finance the purchase of the new policy withexisting policy values.  This prima facie standard is not intended to increaseor decrease the monitoring obligations contained in section 431:10D-504(1)(E).

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

"Policy summary" for the purposes ofthis part:

(1)  For policies or contracts other than universallife policies, means a written statement regarding a policy or contract whichshall contain to the extent applicable, but need not be limited to, thefollowing information: current death benefit, annual contract premium, currentcash surrender value, current dividend, application of current dividend, andamount of outstanding loan.

(2)  For universal life policies, means a writtenstatement that shall contain at least the following information: the beginningand end date of the current report period; the policy value at the end of theprevious report period and at the end of the current report period; the totalamounts that have been credited or debited to the policy value during thecurrent report period, identifying each by type (e.g., interest, mortality,expense, and riders); the current death benefit at the end of the currentreport period on each life covered by the policy; the net cash surrender valueof the policy as of the end of the current report period; and the amount ofoutstanding 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 avariable annuity contract or variable life insurance policy subject to theprospectus delivery requirements of the Securities Act of 1933.

"Replacement" means a transaction inwhich a new policy or contract is to be purchased, and it is known or should beknown to the proposing producer, or to the proposing insurer if there is noproducer, that by reason of the transaction, an existing policy or contract hasbeen or is to be:

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

(2)  Converted to reduced paid-up insurance, continuedas extended term insurance, or otherwise reduced in value by the use ofnonforfeiture benefits or other policy values;

(3)  Amended so as to effect either a reduction inbenefits or in the term for which coverage would otherwise remain in force orfor which benefits would be paid;

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

(5)  Used in a financed purchase.

"Replacing insurer" means theinsurance company that issues or proposes to issue a new policy or contractthat replaces an existing policy or contract or is a financed purchase.

"Sales material" means a salesillustration and any other written, printed, or electronically presentedinformation created, completed, or provided by the company or producer and usedin the presentation to the policy or contract owner related to the policy orcontract 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]