The term blocked life insurance policy shall mean any life
insurance policy or annuity contract, or contract supplementary thereto,
in which there is a blocked interest.
(2) Any interest of a national of a designated foreign country shall
be deemed to be a ``blocked interest.''
(3) The term servicing shall mean the following transactions with
respect to any blocked life insurance policy:
(i) The payment of premiums, the payment of loan interest, and the
repayment of policy loans;
(ii) The effecting by a life insurance company or other insurer of
loans to an insured;
(iii) The effecting on behalf of an insured of surrenders,
conversions, modifications, and reinstatements; and
(iv) The exercise or election by an insured of non-forfeiture
options, optional modes of settlement, optional disposition of
dividends, and other policy options and privileges not involving payment by the insurer. Section