(a) "Active duty" means full-time duty in the active military service of the United States and includes members of the reserve component (National Guard and Reserve) while serving under published orders for active duty or full-time training. The term does not include members of the reserve component who are performing active duty or active duty for training under military calls or orders specifying periods of less than 31 calendar days.(b) "Department of Defense (DoD) personnel" means all active duty service members and all civilian employees, including nonappropriated fund employees and special government employees, of the Department of Defense.(c) "Door to door" means a solicitation or sales method whereby an insurance producer proceeds randomly or selectively from household to household without prior specific appointment.(d) "General advertisement" means an advertisement having as its sole purpose the promotion of the reader's or viewer's interest in the concept of insurance, or the promotion of the insurer or the insurance producer.(e) "Individually issued annuity" means any annuity that neither directly nor indirectly includes, is part of or is attached by rider, endorsement or other mechanism to another life insurance product of any kind.(f) "Insurer" means an insurance company required to be licensed under the laws of this state to provide life insurance products, including annuities.(g) "Insurance producer" means a person required to be licensed under the laws of this state to sell, solicit or negotiate life insurance, including annuities.(h) "Known" or "knowingly" means, depending on its use herein, the insurance producer or insurer had actual awareness, or in the exercise of ordinary care should have known, at the time of the act or practice complained of, that the person solicited is a service member.(i) "Life insurance" means insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income and, unless otherwise specifically excluded, includes individually issued annuities.(j) "Military installation" means any federally owned, leased, or operated base, reservation, post, camp, building, or other facility to which service members are assigned for duty, including barracks, transient housing, and family quarters.(k) "MyPay" is a Defense Finance and Accounting Service (DFAS) web-based system that enables service members to process certain discretionary pay transactions or provide updates to personal information data elements without using paper forms.(l) As used in this article, in Sections 2534.28, 2542.3 and 2544.2, and in Insurance Code section 10168, "premium deposit fund" means amounts paid in (including any interest credited thereon) and held for payments of future contractual obligations of policyholders or contractholders under an individual life insurance policy (or individual annuity contract). The term does not include paid-in amounts, or interest credited thereon, held for the purchase at a future date of annuity benefits for the policyholder of an individual life insurance policy (or the contractholder of an individual annuity contract).(m) "Service member" means any active duty officer (commissioned and warrant) or enlisted member of the United States Armed Forces.(n) "Side fund" is defined as a fund or reserve that is part of or otherwise attached to a life insurance policy (which life insurance policy is not an individually issued annuity) by rider, endorsement or other mechanism and which accumulates premium or deposits with interest or by other means. Three exceptions are added to the definition of "side fund" that is stated in the preceding sentence, and these exceptions are described in paragraphs (n)(1), (n)(2) and (n)(3) of this subdivision (n), respectively. For purposes of paragraphs (n)(1) and (n)(2) below, the term "presumptive side fund" means a fund or reserve that, before any of the three exceptions is added, satisfies the definition stated in the first sentence of this subdivision (n).(1) The following values or guarantees provided by a universal life policy are excepted from the definition of "side fund": accumulated value, cash surrender value or secondary guarantees. However, unless the statement in subparagraph (n)(1)(A) below or the statement in subparagraph (n)(1)(B) below is true, a presumptive side fund constitutes a "side fund," regardless of whether amounts held in such presumptive side fund are taken into account in the method by which accumulated value, cash surrender value or secondary guarantees are calculated:(A) the presumptive side fund in question is itself nothing other than an accumulated value, cash surrender value or secondary guarantee, each provided by a universal life policy, or(B) the presumptive side fund in question is pursuant to paragraph (n)(2) below or paragraph (n)(3) below excepted from the definition of "side fund."(2) Cash surrender values provided by a whole life policy which are subject to Article 3A of Chapter 1 of Part 2 of Division 2, commencing at section 10159.1, of the Insurance Code are excepted from the definition of "side fund." However, unless the statement in subparagraph (n)(2)(A) below or the statement in subparagraph (n)(2)(B) below is true, a presumptive side fund constitutes a "side fund," regardless of whether amounts held in such presumptive side fund are taken into account in the method by which cash surrender values are calculated: (A) the presumptive side fund in question is itself nothing other than a cash surrender value as described in the first sentence of this paragraph (n)(2), or(B) the presumptive side fund in question is pursuant to paragraph (n)(1) above or paragraph (n)(3) below excepted from the definition of "side fund."(3) The following is excepted from the definition of "side fund": a premium deposit fund which: (A) contains only premiums paid in advance which accumulate at interest;(B) imposes no penalty for withdrawal;(C) does not permit funding beyond future required premiums;(D) is not marketed or intended as an investment; and(E) does not carry a commission, either paid or calculated.(o) "Specific appointment" means a prearranged appointment agreed upon by both parties and definite as to place and time.(p) "United States Armed Forces" means all components of the Army, Navy, Air Force, Marine Corps, and Coast Guard.Cal. Code Regs. Tit. 10, § 2695.24
1. New section filed 2-22-2008; operative 2-22-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 8). Note: Authority cited: Sections 720, 790.10, 10168.92, 10206.5, 10506 and 10506.3, Insurance Code; CalFarm Ins. Co. v. Deukmejian, 48 Cal.3d 805 (1989); 20th Century Ins. Co. v. Garamendi, 8 Cal. 4th 216 (1994). Reference: Sections 32, 101, 330, 331, 332, 333, 334, 350, 351, 358, 359, 360, 700, 730, 733, 780, 781, 783, 783.5, 790.03, 791.02, 791.03, 1626, 10159.1, 10165, 10168, 10206.5, 10506, 10506.3, 10509.8, 10509.9 and 10540, Insurance Code; Section 823.5, Military and Veterans Code.
1. New section filed 2-22-2008; operative 2-22-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 8).