SECTION 365:10-3-31. Definitions

(a)   The following words or terms, when used in this Part, shall have the following meaning, unless the context clearly indicates otherwise:

(1)   "Advertisement" means 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, provided:

(A)   "Advertisement" shall include:

(i)   printed and published material, audiovisual material, and descriptive literature of an insurer or insurance producer used in direct mail, newspapers, magazines, radio and television scripts, social media, billboards and similar displays;

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

(iii)   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;

(iv)   prepared sales talks, presentations and material for use by insurance producers.

(B)   "Advertisement" shall not include:

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

(ii)   communications with policyholders other than material urging policyholders to purchase, increase, modify, reinstate or retain a policy;

(iii)   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.

(2)   "Insurance producer" means an individual who solicits, negotiates, effects, procures, renews, continues or binds policies of life insurance covering risks located in this State.

(3)   "Insurer" means any individual, corporation, association, partnership, reciprocal exchange, interinsurer, Lloyd's, fraternal benefit society, and any other legal entity which is defined as an "insurer" in the insurance code of this State or issues life insurance or annuities in this State and is engaged in the advertisement of a policy.

(4)   "Policy" means any policy, plan, certificate, including fraternal benefit certificate, contract, agreement, statement of coverage, rider or endorsement which provides for life insurance or annuity benefits.

(5)   "Non-guaranteed policy element" means any premium, cash value, death benefit, endowment value, dividend or other policy benefit or pricing element or portion thereof whose amount is not guaranteed by the terms of the contract. Any policy element that contractually follows a separate account result or a defined index is not considered a non-guaranteed policy element.

(6)   "Pre-need funeral contract or prearrangement" means an agreement by or for an individual before the individual's death relating to the purchase of provision of specific funeral or cemetery merchandise or services.

(b)   Applicability.

(1)   The rules of this section shall apply to any life insurance or annuity advertisement intended for dissemination in this State.

(2)   Every insurer of life insurance shall establish and at all times maintain a system of control over the content, form and method of dissemination of all advertisements of its policies. All such advertisements, regardless of by whom written, created, designed or presented, shall be the responsibility of the insurer.

(c)   Conflict with other rules. It is not intended that the rules of this section conflict with or supersede any rules currently in force or subsequently adopted in this State governing specific aspects of the sale or replacement of life insurance including, but not limited to, rules dealing with life insurance cost comparison indices, deceptive practices in the sale of life insurance, and replacement of life insurance policies. Consequently, no disclosure required under any such rules shall be deemed to be an advertisement within the meaning of the rules of this section.

(d)   Severability. If any section, term or provision of this section shall be adjudged invalid for any reason, such judgment shall not affect, impair or invalidate any other Section, term or provision of this section, and the remaining Sections, terms and provisions shall be and remain in full force and effect.

[Source: Amended at 32 Ok Reg 1930, eff 9-15-15]