210 Neb. Admin. Code, ch. 50, § 003

Current through September 17, 2024

Section 210-50-003 - Definitions

For the purpose of these rules:

003.01 Advertisement

"Advertisement" shall be material designed to create public interest in life insurance or annuities or in an insurer, or in an insurance producer; or to induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, or retain a policy including:

003.01A printed and published material, audiovisual material, and descriptive literature of an insurer or producer used in direct mail, newspapers, magazines, telephone, radio and television scripts, telemarketing scripts, billboards and similar displays, and the Internet or any other mass communication media;

003.01B descriptive literature and sales aids of all kinds, authored by the insurer, its producers, or third parties, issued, distributed or used by such insurer or producer; including but not limited to circulars, leaflets, booklets, web pages, depictions, illustrations and form letters;

003.01C material used for the recruitment, training, and education of an insurer's insurance producers which is designed to be used or is used to induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace or retain a policy; and

003.01D prepared sales talks, presentations and material for use by insurance agents or brokers.

003.02 Advertisement

"Advertisement" for the purpose of these rules shall not include:

003.02A communications or materials used within an insurer's own organization and not intended for dissemination to the public;

003.02B communications with policyholders other than material urging policyholders to purchase, increase, modify, reinstate or retain a policy; and

003.02C a general announcement from a group or blanket policyholder to eligible individuals on an employment or membership list that a policy or program has been written or arranged; provided the announcement clearly indicates that it is preliminary to the issuance of a booklet explaining the proposed coverage.

003.03 Determinable policy elements

"Determinable policy elements" means elements that are derived from processes or methods that are guaranteed at issue and not subject to company discretion, but where the values or amounts cannot be determined until some point after issue. These elements include the premiums, credited interest rates (including any bonus), benefits, values, non-interest based credits, charges or elements of formulas used to determine any of these. These elements may be described as guaranteed but not determined at issue. An element is considered determinable if it was calculated from underlying determinable policy elements only, or from both determinable and guaranteed policy elements.

003.04 Guaranteed policy elements

"Guaranteed policy elements" means the premiums, benefits, values, credits or charges under a policy, or elements of formulas used to determine any of these that are guaranteed and determined at issue.

003.05 Insurance producer

"Insurance producer" means a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance.

003.06 Insurer

"Insurer" shall include any individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyd's, fraternal benefit society, and any other legal entity which is defined as an "insurer" in the insurance laws of this State or issues life insurance or annuities in this State and is engaged in the advertisement of a policy.

003.07 Nonguaranteed elements

"Nonguaranteed elements" means the premiums, credited interest rates (including any bonus), benefits, values, non-interest based credits, charges or elements of formulas used to determine any of these, that are subject to company discretion and are not guaranteed at issue. An element is considered nonguaranteed if any of the underlying nonguaranteed elements are used in its calculation.

003.08 Policy

"Policy" shall include any policy, plan, certificate, including a fraternal benefit certificate, contract, agreement, statement of coverage, rider or endorsement which provides for life insurance or annuity benefits.

003.09 Preneed Funeral Contract or Prearrangement

"Preneed Funeral Contract or Prearrangement" shall mean an agreement by or for an individual before the individual's death relating to the purchase or provision of specific funeral or cemetery merchandise or services.

210 Neb. Admin. Code, ch. 50, § 003