Unless otherwise specifically included, this chapter shall not apply to transactions involving:

1. (a) Direct response solicitations where there is no recommendation based on information collected from the consumer pursuant to this chapter.

2. (b) Contracts used to fund any of the following:

   1. 1. An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act (ERISA).
   2. 2. A plan described by Sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code (IRC), as amended, if established or maintained by an employer.
   3. 3. A government or church plan defined in Section 414 of the IRC, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax-exempt organization under Section 457 of the IRC.
   4. 4. A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor.
3. (c) Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process.
4. (d) Formal prepaid funeral contracts.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§27-2-17; 27-12-1, et seq.

History: New Rule: May 19, 2006; effective January 1, 2007. Filed with LRS May 22, 2006. Rule is not subject to the Alabama Administrative Procedure Act. Amended: July 21, 2016; effective January 1, 2017. Filed with LRS July 21, 2016. Rule is not subject to the Alabama Administrative Procedure Act. Amended: June 10, 2021; effective January 1, 2022. Filed with LRS June 10, 2021. Rule is not subject to the Alabama Administrative Procedure Act.