§ 58-58-330. Exemptions.
§ 58‑58‑330. Exemptions.
(a) This Part does notapply to solicitations or sales involving:
(1) Credit insurance.
(2) Group life insuranceor group annuities where there is no in‑person, face‑to‑facesolicitation of individuals by an insurance producer or where the contract orcertificate does not include a side fund.
(3) An application tothe existing insurer that issued the existing policy or contract when (i) acontractual change or a conversion privilege is being exercised, (ii) theexisting policy or contract is being replaced by the same insurer pursuant to aprogram filed with and approved by the Commissioner, or (iii) a term conversionprivilege is exercised among corporate affiliates.
(4) Contracts offered byServicemembers' Group Life Insurance or Veterans' Group Life Insurance, asauthorized by 38 U.S.C. § 1965, et seq.
(5) Individual stand‑alonehealth policies, including disability income policies.
(6) Life insurancecontracts offered through or by a nonprofit military association, qualifyingunder section 501(c)(23) of the Internal Revenue Code (IRC), and that are notunderwritten by an insurer.
(7) Contracts used tofund:
a. An employee pensionor welfare benefit plan that is covered by the Employee Retirement and IncomeSecurity Act (ERISA).
b. A plan described bysections 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code,if established or maintained by an employer.
c. A government orchurch plan defined in section 414 of the Internal Revenue Code, a governmentor church welfare benefit plan, or a deferred compensation plan of a state orlocal government or tax exempt organization under section 457 of the InternalRevenue Code.
d. A nonqualifieddeferred compensation arrangement established or maintained by an employer orplan sponsor.
e. Settlements of orassumptions of liabilities associated with personal injury litigation or anydispute or claim resolution process.
f. Prearranged funeralcontracts.
(b) Nothing in thisPart shall be construed to abrogate the ability of nonprofit organizations(and/or other organizations) to educate members of the United States armedforces in accordance with Department of Defense DoD Instruction 1344.07 PersonalCommercial Solicitation on DoD Installations or successor directive.
(c) For purposes ofthis Part, general advertisements, direct mail, and Internet marketing do notconstitute "solicitation." Telephone marketing does not constitute"solicitation," provided the caller explicitly and conspicuouslydiscloses that the product concerned is life insurance and makes no statementsthat avoid a clear and unequivocal statement that life insurance is the subjectmatter of the solicitation. Provided, however, nothing in this subsection shallbe construed to exempt an insurer or insurance producer from this Part in anyin‑person, face‑to‑face meeting established as a result ofthe "solicitation" exemptions identified in this subsection. (2007‑535, s. 1.)