(a) The following actsor practices by an insurer or insurance producer constitute corrupt practices,improper influences or inducements and are declared to be false, misleading,deceptive, or unfair:
(1) Submitting,processing, or assisting in the submission or processing of any allotment formor similar device used by the United States armed forces to direct a servicemember's pay to a third party for the purchase of life insurance. The foregoingincludes, but is not limited to, using or assisting in using a service member'sMyPay account or other similar Internet or electronic medium for such purposes.This subdivision does not prohibit assisting a service member by providinginsurer or premium information necessary to complete any allotment form.
(2) Knowingly receivingfunds from a service member for the payment of premium from a depositoryinstitution with which the service member has no formal banking relationship.For purposes of this section, a formal banking relationship is established whenthe depository institution:
a. Provides the servicemember a deposit agreement and periodic statements and makes the disclosuresrequired by the Truth in Savings Act, 12 U.S.C. § 4301, et seq. and theregulations promulgated thereunder; and
b. Permits the servicemember to make deposits and withdrawals unrelated to the payment or processingof insurance premiums.
(3) Employing any deviceor method or entering into any agreement whereby funds received from a servicemember by allotment for the payment of insurance premiums are identified on theservice member's Leave and Earnings Statement or equivalent or successor formas "Savings" or "Checking" and where the service member hasno formal banking relationship as defined in subdivision (a)(2) of thissection.
(4) Entering into anyagreement with a depository institution for the purpose of receiving funds froma service member whereby the depository institution, with or withoutcompensation, agrees to accept direct deposits from a service member with whomit has no formal banking relationship.
(5) Using Department ofDefense personnel, directly or indirectly, as a representative or agent in anyofficial or unofficial capacity with or without compensation with respect tothe solicitation or sale of life insurance to service members who are junior inrank or grade or to the family members of such personnel.
(6) Offering or givinganything of value, directly or indirectly, to Department of Defense personnelto procure their assistance in encouraging, assisting, or facilitating thesolicitation or sale of life insurance to another service member.
(7) Knowingly offeringor giving anything of value to a service member with a pay grade of E‑4or below for his or her attendance to any event where an application for lifeinsurance is solicited.
(8) Advising a servicemember with a pay grade of E‑4 or below to change his or her income taxwithholding or state of legal residence for the sole purpose of increasingdisposable income to purchase life insurance.
(b) The following actsor practices by an insurer or insurance producer lead to confusion regardingsource, sponsorship, approval, or affiliation and are declared to be false,misleading, deceptive, or unfair:
(1) Making anyrepresentation, or using any device, title, descriptive name, or identifierthat has the tendency or capacity to confuse or mislead a service member intobelieving that the insurer, insurance producer, or product offered isaffiliated, connected or associated with, endorsed, sponsored, sanctioned, orrecommended by the U.S. Government, the United States armed forces, or anystate or federal agency or government entity. Examples of prohibited insuranceproducer titles include, but are not limited to, "Battalion InsuranceCounselor," "Unit Insurance Advisor," "Servicemen's GroupLife Insurance Conversion Consultant," or "Veteran's BenefitsCounselor." Nothing in this subdivision prohibits a person from using aprofessional designation awarded after the successful completion of a course ofinstruction in the business of insurance by an accredited institution of higherlearning. Those designations include, but are not limited to, Chartered LifeUnderwriter (CLU), Chartered Financial Consultant, (ChFC), Certified FinancialPlanner (CFP), Master of Science in Financial Services (MSFS), or Masters ofScience Financial Planning (MS).
(2) Soliciting thepurchase of any life insurance product through the use of or in conjunction withany third party organization that promotes the welfare of or assists members ofthe United States armed forces in a manner that has the tendency or capacity toconfuse or mislead a service member into believing that either the insurer,insurance producer, or insurance product is affiliated, connected or associatedwith, endorsed, sponsored, sanctioned, or recommended by the U.S. Government orthe United States armed forces.
(c) The following actsor practices by an insurer or insurance producer lead to confusion regardingpremiums, costs, or investment returns and are declared to be false,misleading, deceptive, or unfair:
(1) Using or describingthe credited interest rate on a life insurance policy in a manner that impliesthat the credited interest rate is a net return on premium paid.
(2) Excludingindividually issued annuities, misrepresenting the mortality costs of a lifeinsurance product, including stating or implying that the product "costsnothing" or is "free."
(d) The following actsor practices by an insurer or insurance producer regarding SGLI or VGLI aredeclared to be false, misleading, deceptive, or unfair:
(1) Making anyrepresentation regarding the availability, suitability, amount, cost,exclusions, or limitations to coverage provided to a service member ordependents by SGLI or VGLI that is false, misleading, or deceptive.
(2) Making anyrepresentation regarding conversion requirements, including the costs ofcoverage, or exclusions or limitations to coverage of SGLI or VGLI to private insurersthat is false, misleading, or deceptive.
(3) Suggesting,recommending, or encouraging a service member to cancel or terminate his or herSGLI policy or issuing a life insurance policy that replaces an existing SGLIpolicy unless the replacement shall take effect upon or after the servicemember's separation from the armed forces.
(e) The following actsor practices by an insurer and/or insurance producer regarding disclosure aredeclared to be false, misleading, deceptive, or unfair:
(1) Deploying, using, orcontracting for any lead generating materials designed exclusively for use withservice members that do not clearly and conspicuously disclose that therecipient will be contacted by an insurance producer, if that is the case, forthe purpose of soliciting the purchase of life insurance.
(2) Failing to disclosethat a solicitation for the sale of life insurance will be made whenestablishing a specific appointment for an in‑person, face‑to‑facemeeting with a prospective purchaser.
(3) Excluding individuallyissued annuities, failing to clearly and conspicuously disclose the fact thatthe product being sold is life insurance.
(4) Failing to make, atthe time of sale or offer to an individual known to be a service member, thewritten disclosures required by section 10 of the Military Personnel FinancialServices Protection Act, Pub. L. No. 109‑290, p.16.
(5) Excludingindividually issued annuities, when the sale is conducted in‑person, face‑to‑facewith an individual known to be a service member, failing to provide theapplicant at the time the application is taken:
a. An explanation ofany free look period with instructions on how to cancel if a policy is issued;and
b. Either a copy of theapplication or a written disclosure. The copy of the application or the writtendisclosure shall clearly and concisely set out the type of life insurance, thedeath benefit applied for, and its expected first year cost. A basicillustration that meets the requirements of rules adopted by the Commissionerconcerning life insurance illustrations are sufficient to meet this requirementfor a written disclosure.
(f) The following actsor practices by an insurer or insurance producer with respect to the sale ofcertain life insurance products are declared to be false, misleading,deceptive, or unfair:
(1) Excludingindividually issued annuities, recommending the purchase of any life insuranceproduct which includes a side fund to a service member in pay grades E‑4and below unless the insurer has reasonable grounds for believing that the lifeinsurance death benefit, standing alone, is suitable.
(2) Offering for sale orselling a life insurance product which includes a side fund to a service memberin pay grades E‑4 and below who is currently enrolled in SGLI is presumedunsuitable unless, after the completion of a needs assessment, the insurerdemonstrates that the applicant's SGLI death benefit, together with any othermilitary survivor benefits, savings and investments, survivor income, and otherlife insurance are insufficient to meet the applicant's insurable needs forlife insurance. As used in this subdivision, "insurable needs" arethe risks associated with premature death taking into consideration thefinancial obligations and immediate and future cash needs of the applicant'sestate and/or survivors or dependents; and "other military survivorbenefits" include, but are not limited to: the Death Gratuity, FuneralReimbursement, Transition Assistance, Survivor and Dependents' EducationalAssistance, Dependency and Indemnity Compensation, TRICARE Healthcare Benefits,Survivor Housing Benefits and Allowances, Federal Income Tax Forgiveness, andSocial Security Survivor Benefits.
(3) Excludingindividually issued annuities, offering for sale or selling any life insurancecontract which includes a side fund:
a. Unless interestcredited accrues from the date of deposit to the date of withdrawal and permitswithdrawals without limit or penalty;
b. Unless the applicanthas been provided with a schedule of effective rates of return based upon cashflows of the combined product. For this disclosure, the effective rate ofreturn will consider all premiums and cash contributions made by thepolicyholder and all cash accumulations and cash surrender values available tothe policyholder in addition to life insurance coverage. This schedule will beprovided for at least each policy year from one to 10 and for every fifthpolicy year thereafter ending at age 100, policy maturity, or final expiration;and
c. Which by defaultdiverts or transfers funds accumulated in the side fund to pay, reduce, oroffset any premiums due.
(4) Excludingindividually issued annuities, offering for sale or selling any life insurancecontract which after considering all policy benefits, including, but not limitedto, endowment, return of premium, or persistency, does not comply with standardnonforfeiture law for life insurance.
(5) Selling any lifeinsurance product to an individual known to be a service member that excludescoverage if the insured's death is related to war, declared or undeclared, orany act related to military service except for an accidental death coverage,e.g., double indemnity, which may be excluded. (2007‑535, s. 1.)
(a) The following actsor practices by an insurer or insurance producer constitute corrupt practices,improper influences or inducements and are declared to be false, misleading,deceptive, or unfair:
(1) Submitting,processing, or assisting in the submission or processing of any allotment formor similar device used by the United States armed forces to direct a servicemember's pay to a third party for the purchase of life insurance. The foregoingincludes, but is not limited to, using or assisting in using a service member'sMyPay account or other similar Internet or electronic medium for such purposes.This subdivision does not prohibit assisting a service member by providinginsurer or premium information necessary to complete any allotment form.
(2) Knowingly receivingfunds from a service member for the payment of premium from a depositoryinstitution with which the service member has no formal banking relationship.For purposes of this section, a formal banking relationship is established whenthe depository institution:
a. Provides the servicemember a deposit agreement and periodic statements and makes the disclosuresrequired by the Truth in Savings Act, 12 U.S.C. § 4301, et seq. and theregulations promulgated thereunder; and
b. Permits the servicemember to make deposits and withdrawals unrelated to the payment or processingof insurance premiums.
(3) Employing any deviceor method or entering into any agreement whereby funds received from a servicemember by allotment for the payment of insurance premiums are identified on theservice member's Leave and Earnings Statement or equivalent or successor formas "Savings" or "Checking" and where the service member hasno formal banking relationship as defined in subdivision (a)(2) of thissection.
(4) Entering into anyagreement with a depository institution for the purpose of receiving funds froma service member whereby the depository institution, with or withoutcompensation, agrees to accept direct deposits from a service member with whomit has no formal banking relationship.
(5) Using Department ofDefense personnel, directly or indirectly, as a representative or agent in anyofficial or unofficial capacity with or without compensation with respect tothe solicitation or sale of life insurance to service members who are junior inrank or grade or to the family members of such personnel.
(6) Offering or givinganything of value, directly or indirectly, to Department of Defense personnelto procure their assistance in encouraging, assisting, or facilitating thesolicitation or sale of life insurance to another service member.
(7) Knowingly offeringor giving anything of value to a service member with a pay grade of E‑4or below for his or her attendance to any event where an application for lifeinsurance is solicited.
(8) Advising a servicemember with a pay grade of E‑4 or below to change his or her income taxwithholding or state of legal residence for the sole purpose of increasingdisposable income to purchase life insurance.
(b) The following actsor practices by an insurer or insurance producer lead to confusion regardingsource, sponsorship, approval, or affiliation and are declared to be false,misleading, deceptive, or unfair:
(1) Making anyrepresentation, or using any device, title, descriptive name, or identifierthat has the tendency or capacity to confuse or mislead a service member intobelieving that the insurer, insurance producer, or product offered isaffiliated, connected or associated with, endorsed, sponsored, sanctioned, orrecommended by the U.S. Government, the United States armed forces, or anystate or federal agency or government entity. Examples of prohibited insuranceproducer titles include, but are not limited to, "Battalion InsuranceCounselor," "Unit Insurance Advisor," "Servicemen's GroupLife Insurance Conversion Consultant," or "Veteran's BenefitsCounselor." Nothing in this subdivision prohibits a person from using aprofessional designation awarded after the successful completion of a course ofinstruction in the business of insurance by an accredited institution of higherlearning. Those designations include, but are not limited to, Chartered LifeUnderwriter (CLU), Chartered Financial Consultant, (ChFC), Certified FinancialPlanner (CFP), Master of Science in Financial Services (MSFS), or Masters ofScience Financial Planning (MS).
(2) Soliciting thepurchase of any life insurance product through the use of or in conjunction withany third party organization that promotes the welfare of or assists members ofthe United States armed forces in a manner that has the tendency or capacity toconfuse or mislead a service member into believing that either the insurer,insurance producer, or insurance product is affiliated, connected or associatedwith, endorsed, sponsored, sanctioned, or recommended by the U.S. Government orthe United States armed forces.
(c) The following actsor practices by an insurer or insurance producer lead to confusion regardingpremiums, costs, or investment returns and are declared to be false,misleading, deceptive, or unfair:
(1) Using or describingthe credited interest rate on a life insurance policy in a manner that impliesthat the credited interest rate is a net return on premium paid.
(2) Excludingindividually issued annuities, misrepresenting the mortality costs of a lifeinsurance product, including stating or implying that the product "costsnothing" or is "free."
(d) The following actsor practices by an insurer or insurance producer regarding SGLI or VGLI aredeclared to be false, misleading, deceptive, or unfair:
(1) Making anyrepresentation regarding the availability, suitability, amount, cost,exclusions, or limitations to coverage provided to a service member ordependents by SGLI or VGLI that is false, misleading, or deceptive.
(2) Making anyrepresentation regarding conversion requirements, including the costs ofcoverage, or exclusions or limitations to coverage of SGLI or VGLI to private insurersthat is false, misleading, or deceptive.
(3) Suggesting,recommending, or encouraging a service member to cancel or terminate his or herSGLI policy or issuing a life insurance policy that replaces an existing SGLIpolicy unless the replacement shall take effect upon or after the servicemember's separation from the armed forces.
(e) The following actsor practices by an insurer and/or insurance producer regarding disclosure aredeclared to be false, misleading, deceptive, or unfair:
(1) Deploying, using, orcontracting for any lead generating materials designed exclusively for use withservice members that do not clearly and conspicuously disclose that therecipient will be contacted by an insurance producer, if that is the case, forthe purpose of soliciting the purchase of life insurance.
(2) Failing to disclosethat a solicitation for the sale of life insurance will be made whenestablishing a specific appointment for an in‑person, face‑to‑facemeeting with a prospective purchaser.
(3) Excluding individuallyissued annuities, failing to clearly and conspicuously disclose the fact thatthe product being sold is life insurance.
(4) Failing to make, atthe time of sale or offer to an individual known to be a service member, thewritten disclosures required by section 10 of the Military Personnel FinancialServices Protection Act, Pub. L. No. 109‑290, p.16.
(5) Excludingindividually issued annuities, when the sale is conducted in‑person, face‑to‑facewith an individual known to be a service member, failing to provide theapplicant at the time the application is taken:
a. An explanation ofany free look period with instructions on how to cancel if a policy is issued;and
b. Either a copy of theapplication or a written disclosure. The copy of the application or the writtendisclosure shall clearly and concisely set out the type of life insurance, thedeath benefit applied for, and its expected first year cost. A basicillustration that meets the requirements of rules adopted by the Commissionerconcerning life insurance illustrations are sufficient to meet this requirementfor a written disclosure.
(f) The following actsor practices by an insurer or insurance producer with respect to the sale ofcertain life insurance products are declared to be false, misleading,deceptive, or unfair:
(1) Excludingindividually issued annuities, recommending the purchase of any life insuranceproduct which includes a side fund to a service member in pay grades E‑4and below unless the insurer has reasonable grounds for believing that the lifeinsurance death benefit, standing alone, is suitable.
(2) Offering for sale orselling a life insurance product which includes a side fund to a service memberin pay grades E‑4 and below who is currently enrolled in SGLI is presumedunsuitable unless, after the completion of a needs assessment, the insurerdemonstrates that the applicant's SGLI death benefit, together with any othermilitary survivor benefits, savings and investments, survivor income, and otherlife insurance are insufficient to meet the applicant's insurable needs forlife insurance. As used in this subdivision, "insurable needs" arethe risks associated with premature death taking into consideration thefinancial obligations and immediate and future cash needs of the applicant'sestate and/or survivors or dependents; and "other military survivorbenefits" include, but are not limited to: the Death Gratuity, FuneralReimbursement, Transition Assistance, Survivor and Dependents' EducationalAssistance, Dependency and Indemnity Compensation, TRICARE Healthcare Benefits,Survivor Housing Benefits and Allowances, Federal Income Tax Forgiveness, andSocial Security Survivor Benefits.
(3) Excludingindividually issued annuities, offering for sale or selling any life insurancecontract which includes a side fund:
a. Unless interestcredited accrues from the date of deposit to the date of withdrawal and permitswithdrawals without limit or penalty;
b. Unless the applicanthas been provided with a schedule of effective rates of return based upon cashflows of the combined product. For this disclosure, the effective rate ofreturn will consider all premiums and cash contributions made by thepolicyholder and all cash accumulations and cash surrender values available tothe policyholder in addition to life insurance coverage. This schedule will beprovided for at least each policy year from one to 10 and for every fifthpolicy year thereafter ending at age 100, policy maturity, or final expiration;and
c. Which by defaultdiverts or transfers funds accumulated in the side fund to pay, reduce, oroffset any premiums due.
(4) Excludingindividually issued annuities, offering for sale or selling any life insurancecontract which after considering all policy benefits, including, but not limitedto, endowment, return of premium, or persistency, does not comply with standardnonforfeiture law for life insurance.
(5) Selling any lifeinsurance product to an individual known to be a service member that excludescoverage if the insured's death is related to war, declared or undeclared, orany act related to military service except for an accidental death coverage,e.g., double indemnity, which may be excluded. (2007‑535, s. 1.)
(a) The following actsor practices by an insurer or insurance producer constitute corrupt practices,improper influences or inducements and are declared to be false, misleading,deceptive, or unfair:
(1) Submitting,processing, or assisting in the submission or processing of any allotment formor similar device used by the United States armed forces to direct a servicemember's pay to a third party for the purchase of life insurance. The foregoingincludes, but is not limited to, using or assisting in using a service member'sMyPay account or other similar Internet or electronic medium for such purposes.This subdivision does not prohibit assisting a service member by providinginsurer or premium information necessary to complete any allotment form.
(2) Knowingly receivingfunds from a service member for the payment of premium from a depositoryinstitution with which the service member has no formal banking relationship.For purposes of this section, a formal banking relationship is established whenthe depository institution:
a. Provides the servicemember a deposit agreement and periodic statements and makes the disclosuresrequired by the Truth in Savings Act, 12 U.S.C. § 4301, et seq. and theregulations promulgated thereunder; and
b. Permits the servicemember to make deposits and withdrawals unrelated to the payment or processingof insurance premiums.
(3) Employing any deviceor method or entering into any agreement whereby funds received from a servicemember by allotment for the payment of insurance premiums are identified on theservice member's Leave and Earnings Statement or equivalent or successor formas "Savings" or "Checking" and where the service member hasno formal banking relationship as defined in subdivision (a)(2) of thissection.
(4) Entering into anyagreement with a depository institution for the purpose of receiving funds froma service member whereby the depository institution, with or withoutcompensation, agrees to accept direct deposits from a service member with whomit has no formal banking relationship.
(5) Using Department ofDefense personnel, directly or indirectly, as a representative or agent in anyofficial or unofficial capacity with or without compensation with respect tothe solicitation or sale of life insurance to service members who are junior inrank or grade or to the family members of such personnel.
(6) Offering or givinganything of value, directly or indirectly, to Department of Defense personnelto procure their assistance in encouraging, assisting, or facilitating thesolicitation or sale of life insurance to another service member.
(7) Knowingly offeringor giving anything of value to a service member with a pay grade of E‑4or below for his or her attendance to any event where an application for lifeinsurance is solicited.
(8) Advising a servicemember with a pay grade of E‑4 or below to change his or her income taxwithholding or state of legal residence for the sole purpose of increasingdisposable income to purchase life insurance.
(b) The following actsor practices by an insurer or insurance producer lead to confusion regardingsource, sponsorship, approval, or affiliation and are declared to be false,misleading, deceptive, or unfair:
(1) Making anyrepresentation, or using any device, title, descriptive name, or identifierthat has the tendency or capacity to confuse or mislead a service member intobelieving that the insurer, insurance producer, or product offered isaffiliated, connected or associated with, endorsed, sponsored, sanctioned, orrecommended by the U.S. Government, the United States armed forces, or anystate or federal agency or government entity. Examples of prohibited insuranceproducer titles include, but are not limited to, "Battalion InsuranceCounselor," "Unit Insurance Advisor," "Servicemen's GroupLife Insurance Conversion Consultant," or "Veteran's BenefitsCounselor." Nothing in this subdivision prohibits a person from using aprofessional designation awarded after the successful completion of a course ofinstruction in the business of insurance by an accredited institution of higherlearning. Those designations include, but are not limited to, Chartered LifeUnderwriter (CLU), Chartered Financial Consultant, (ChFC), Certified FinancialPlanner (CFP), Master of Science in Financial Services (MSFS), or Masters ofScience Financial Planning (MS).
(2) Soliciting thepurchase of any life insurance product through the use of or in conjunction withany third party organization that promotes the welfare of or assists members ofthe United States armed forces in a manner that has the tendency or capacity toconfuse or mislead a service member into believing that either the insurer,insurance producer, or insurance product is affiliated, connected or associatedwith, endorsed, sponsored, sanctioned, or recommended by the U.S. Government orthe United States armed forces.
(c) The following actsor practices by an insurer or insurance producer lead to confusion regardingpremiums, costs, or investment returns and are declared to be false,misleading, deceptive, or unfair:
(1) Using or describingthe credited interest rate on a life insurance policy in a manner that impliesthat the credited interest rate is a net return on premium paid.
(2) Excludingindividually issued annuities, misrepresenting the mortality costs of a lifeinsurance product, including stating or implying that the product "costsnothing" or is "free."
(d) The following actsor practices by an insurer or insurance producer regarding SGLI or VGLI aredeclared to be false, misleading, deceptive, or unfair:
(1) Making anyrepresentation regarding the availability, suitability, amount, cost,exclusions, or limitations to coverage provided to a service member ordependents by SGLI or VGLI that is false, misleading, or deceptive.
(2) Making anyrepresentation regarding conversion requirements, including the costs ofcoverage, or exclusions or limitations to coverage of SGLI or VGLI to private insurersthat is false, misleading, or deceptive.
(3) Suggesting,recommending, or encouraging a service member to cancel or terminate his or herSGLI policy or issuing a life insurance policy that replaces an existing SGLIpolicy unless the replacement shall take effect upon or after the servicemember's separation from the armed forces.
(e) The following actsor practices by an insurer and/or insurance producer regarding disclosure aredeclared to be false, misleading, deceptive, or unfair:
(1) Deploying, using, orcontracting for any lead generating materials designed exclusively for use withservice members that do not clearly and conspicuously disclose that therecipient will be contacted by an insurance producer, if that is the case, forthe purpose of soliciting the purchase of life insurance.
(2) Failing to disclosethat a solicitation for the sale of life insurance will be made whenestablishing a specific appointment for an in‑person, face‑to‑facemeeting with a prospective purchaser.
(3) Excluding individuallyissued annuities, failing to clearly and conspicuously disclose the fact thatthe product being sold is life insurance.
(4) Failing to make, atthe time of sale or offer to an individual known to be a service member, thewritten disclosures required by section 10 of the Military Personnel FinancialServices Protection Act, Pub. L. No. 109‑290, p.16.
(5) Excludingindividually issued annuities, when the sale is conducted in‑person, face‑to‑facewith an individual known to be a service member, failing to provide theapplicant at the time the application is taken:
a. An explanation ofany free look period with instructions on how to cancel if a policy is issued;and
b. Either a copy of theapplication or a written disclosure. The copy of the application or the writtendisclosure shall clearly and concisely set out the type of life insurance, thedeath benefit applied for, and its expected first year cost. A basicillustration that meets the requirements of rules adopted by the Commissionerconcerning life insurance illustrations are sufficient to meet this requirementfor a written disclosure.
(f) The following actsor practices by an insurer or insurance producer with respect to the sale ofcertain life insurance products are declared to be false, misleading,deceptive, or unfair:
(1) Excludingindividually issued annuities, recommending the purchase of any life insuranceproduct which includes a side fund to a service member in pay grades E‑4and below unless the insurer has reasonable grounds for believing that the lifeinsurance death benefit, standing alone, is suitable.
(2) Offering for sale orselling a life insurance product which includes a side fund to a service memberin pay grades E‑4 and below who is currently enrolled in SGLI is presumedunsuitable unless, after the completion of a needs assessment, the insurerdemonstrates that the applicant's SGLI death benefit, together with any othermilitary survivor benefits, savings and investments, survivor income, and otherlife insurance are insufficient to meet the applicant's insurable needs forlife insurance. As used in this subdivision, "insurable needs" arethe risks associated with premature death taking into consideration thefinancial obligations and immediate and future cash needs of the applicant'sestate and/or survivors or dependents; and "other military survivorbenefits" include, but are not limited to: the Death Gratuity, FuneralReimbursement, Transition Assistance, Survivor and Dependents' EducationalAssistance, Dependency and Indemnity Compensation, TRICARE Healthcare Benefits,Survivor Housing Benefits and Allowances, Federal Income Tax Forgiveness, andSocial Security Survivor Benefits.
(3) Excludingindividually issued annuities, offering for sale or selling any life insurancecontract which includes a side fund:
a. Unless interestcredited accrues from the date of deposit to the date of withdrawal and permitswithdrawals without limit or penalty;
b. Unless the applicanthas been provided with a schedule of effective rates of return based upon cashflows of the combined product. For this disclosure, the effective rate ofreturn will consider all premiums and cash contributions made by thepolicyholder and all cash accumulations and cash surrender values available tothe policyholder in addition to life insurance coverage. This schedule will beprovided for at least each policy year from one to 10 and for every fifthpolicy year thereafter ending at age 100, policy maturity, or final expiration;and
c. Which by defaultdiverts or transfers funds accumulated in the side fund to pay, reduce, oroffset any premiums due.
(4) Excludingindividually issued annuities, offering for sale or selling any life insurancecontract which after considering all policy benefits, including, but not limitedto, endowment, return of premium, or persistency, does not comply with standardnonforfeiture law for life insurance.
(5) Selling any lifeinsurance product to an individual known to be a service member that excludescoverage if the insured's death is related to war, declared or undeclared, orany act related to military service except for an accidental death coverage,e.g., double indemnity, which may be excluded. (2007‑535, s. 1.)
