justicedao/ipfs_state_laws huggingface dataset:
836-051-0005 Statutory Authority; Purpose; Applicability (1) OAR 836-051-0005 to 836-051-0020 are adopted by the Director pursuant to general rulemaking authority in ORS 731.244, and specific authority in 742.009 to issue rules requiring disclosures to prospective insurance purchasers. (2) The purpose of OAR 836-051-0005 to 836-051-0020 is to require insurers that are not electing to illustrate life insurance policies under 836-051-0500 to 836-051-0600 to deliver to prospective buyers of life insurance guaranteed policy information that will improve the buyer's ability to select the most appropriate plan of life insurance for the buyer's needs, improve the buyer's understanding of the basic features of the policy that has been purchased or that is under consideration and improve the buyer's ability to evaluate the relative costs of similar plans of life insurance. OAR 836-051-0005 to 836-051-0020 do not prohibit the use of additional material that is not in violation of these or other rules of the Director or provisions of the Insurance Code. (3) OAR 836-051-0005 to 836-051-0020 apply to all transactions of life insurance in this state except with respect to: (a) Annuities; (b) Credit life insurance; (c) Group life insurance; (d) Life insurance policies issued in connection with employee benefit plans as defined by Section 3(3) of the federal Employee Retirement Income Security Act of 1974 (ERISA) as amended from time to time; and (e) Life insurance policies that comply with OAR 836-051-0500 to 836-051-0600. Statutory/Other Authority: ORS 731.244 & 742.009 Statutes/Other Implemented: ORS 742.009 History: ID 19-2006, f. & cert. ef. 9-26-06 ID 5-1997, f. 5-27-97, cert. ef. 7-1-97 ID 15-1996, f. & cert. ef. 11-12-96 IC 3-1978, f. & ef. 6-9-78
836-051-0015 Disclosure Requirements (1) An insurer shall provide to each prospective buyer of life insurance a Buyer's Guide and a Policy Summary prior to accepting the applicant's initial premium or premium deposit, except that if the policy for which application is made contains an unconditional refund provision effective for at least ten days or if the Policy Summary contains such an unconditional refund provision, the Buyer's Guide and Policy Summary must be delivered with the policy or prior to delivery of the policy. (2) An insurer shall provide a Buyer's Guide and a Policy Summary to any prospective buyer upon request of the prospective buyer. (3) In the case of policies for which the Equivalent Level Death Benefit does not exceed $5,000, the Policy Summary need include only the information described in the items in OAR 836-051-0010(8)(b), (c), (d), (e)(A), (e)(B), (e)(C), (f), (g), (j), and (k). Statutory/Other Authority: ORS 731 & 743 Statutes/Other Implemented: ORS 742.009(2) History: ID 19-2006, f. & cert. ef. 9-26-06 IC 3-1978, f. & ef. 6-9-78
836-051-0020 General Requirements (1) An insurer shall maintain at its home office or principal office a complete file containing one copy of each document authorized by the insurer for use pursuant to OAR 836-051-0005 to 836-051-0020. Each such document shall be retained in the file for at least three years following the date of its last authorized use. (2) An insurance producer shall inform a prospective buyer, prior to the beginning a life insurance sales presentation, that the insurance producer is acting as a life insurance producer, and shall inform the prospective buyer of the full name of the insurer that the insurance producer is representing to the buyer. In sales situations in which an insurance producer is not involved, the insurer shall identify its full name. (3) Such terms as "financial planner," "investment advisor," "financial consultant," or "financial counseling" shall not be used in such a way as to imply that the insurance producer is generally engaged in an advisory business in which compensation is unrelated to sales, unless such is actually the case. (4) Any reference to policy dividends must include a statement that dividends are not guaranteed. (5) A presentation that does not recognize through the use of appropriate interest adjustments the time value of money shall not be used for comparing the cost of two or more life insurance policies. Such a presentation may be used for the purpose of demonstrating the cash-flow pattern of a policy if it is accompanied by a statement disclosing that the presentation does not recognize that a dollar in the future has less value than a dollar today because of interest. (6) A presentation of benefits shall not display guaranteed and non-guaranteed benefits as a single sum unless they are also shown separately in close proximity to the single sum. (7) A statement regarding the use of the Life Insurance Net Cost and Surrender Cost Indexes shall include a explanation to the effect that the Indexes are useful only for the comparison of the relative costs of two or more similar policies. (8) A statement of a Life Insurance Net Cost or Surrender Cost Index that reflects dividends, and an Equivalent Level Annual Dividend, shall be accompanied by a statement that it is based on the insurer's current dividend scale and is not guaranteed. (9) For the purposes of OAR 836-051-0005 to 836-051-0020, the annual premium for a basic policy or optional rider for which the insurer reserves the right to change the premium shall be the maximum annual premium. Statutory/Other Authority: ORS 731 & 743 Statutes/Other Implemented: ORS 742.009(2) History: ID 19-2006, f. & cert. ef. 9-26-06 ID 8-2005, f. 5-18-05, cert. ef. 8-1-05 IC 3-1978, f. & ef. 6-9-78
836-051-0030 Purpose and Applicability (1) The purpose of OAR 836-051-0030 to 836-051-0040 is to establish rules that ensure meaningful information is provided to the purchasers of small face amount policies. (2) OAR 836-051-0030 to 836-051-0040 apply to insurance policies and certificates issued on or after July 1, 2011. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 743.218, 746.100, 746.110 & 746.240 History: ID 6-2011, f. & cert. ef. 2-23-11
836-051-0032 Definition "Small face amount policy" means a life insurance policy or certificate with an initial face amount of $15,000 or less. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 743.218, 746.100, 746.110 & 746.240 History: ID 6-2011, f. & cert. ef. 2-23-11
836-051-0034 Exemptions OAR 836-051-0030 to 836-051-0040 apply to all group and individual life insurance policies and certificates except: (1) Variable life insurance; (2) Individual and group annuity contracts; (3) Credit life insurance; (4) Group or individual policies of life insurance issued to members of an employer group or other permitted group where: (a) Every plan of coverage was selected by the employer or other group representative; (b) Some portion of the premium is paid by the group or through payroll deduction; and (c) Group underwriting or simplified underwriting is used; or (5) Policies and certificates where an illustration has been provided pursuant to the requirements of OAR 836-051-0500 to 836-051-0600. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 743.218, 746.100, 746.110 & 746.240 History: ID 6-2011, f. & cert. ef. 2-23-11
836-051-0036 Disclosure Requirements (1) An insurer issuing a small face amount policy, where over the term of the policy the cumulative policy premiums paid may exceed the face amount of the policy, shall clearly and prominently disclose, on or before policy delivery, the length of time until the cumulative policy premiums paid may exceed the face amount of the policy. (2) If an insurer is required to provide a disclosure under section (1) of this rule, the insurer shall clearly and prominently disclose, on or before policy delivery, available premium payment plans. (3) Cumulative premiums shall include premiums paid for riders. However, the face amount shall not include the benefit attributable to the riders. (4) Each policy subject to the disclosure requirements of this section shall contain a provision that allows the policyholder to cancel the policy within 10 days following the delivery of the policy with full premium refund to the consumer and with no charge or penalty. The free-look period shall be clearly and prominently disclosed to the consumer. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 743.218, 746.100, 746.110 & 746.240 History: ID 6-2011, f. & cert. ef. 2-23-11
836-051-0038 Insurer Duties The insurer and its producers shall provide additional information to any policyholder or certificate holder who asks questions about the disclosure statement. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 743.218, 746.100, 746.110 & 746.240 History: ID 6-2011, f. & cert. ef. 2-23-11
836-051-0040 Trade Practice Regulation Violation of any provision of OAR 836-051-0030 to 836-051-0040 is an unfair trade practice under ORS 746.240. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 743.218, 746.100, 746.110 & 746.240 History: ID 6-2011, f. & cert. ef. 2-23-11
836-051-0101 Statutory Authority; Purpose; Applicability; and Effective Date (1) OAR 836-051-0101 to 836-051-0115 are adopted pursuant to the general rulemaking authority of the Director in ORS 731.244, and specific authority of 733.306 and 743.215 for approving mortality tables adopted by the National Association of Insurance Commissioners for use in determining minimum valuation and nonforfeiture standards. (2) OAR 836-051-0101 to 836-051-0115 apply to policies of ordinary life insurance issued on the standard basis. Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 9-2003, f. 12-26-03, cert. ef. 1-1-04 ID 15-1997, f. & cert. ef. 10-29-97 ID 15-1996, f. & cert. ef. 11-12-96 IC 5-1985, f. & ef. 11-20-85
836-051-0110 Life Insurance Nonforfeiture Standards for Men and Women (1) Use of the blended tables procedure described in section (2) of this rule shall be limited to situations in which sex neutral benefits are required to comply with the decision of the United States Supreme Courts in Arizona Governing Committee v. Norris, 463 U.S. 1073, 103 S. Ct. 3492, 77 1. Ed 2d 1236 (1983). (2) In situations of section (1) of this rule, insurers may use the blended tables described in NAIC Proposed Procedures for Permitting Same Minimum Nonforfeiture Standards for Men and Women Insureds Under 1980 CSO and 1980 CET Mortality Tables, NAIC Proceedings, 1984 Volume I, pp. 426–428, as amended in Section 4 by NAIC Proceedings, 1984 Volume 1, p. 395. These procedures establish the method by which select factors are to be obtained for blended 1980 CSO Mortality Tables as described in NAIC Proceedings, 1984 Volume I, p. 457. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 731, 733 & 743 Statutes/Other Implemented: ORS 733.306(1)-(2) & 733.306(4)-(6) History: IC 5-1985, f. & ef. 11-20-85
836-051-0115 Smoker/Nonsmoker Mortality Tables Insurers may use the tables as described in Proposed NAIC Model Rule Permitting Smoker/Nonsmoker Mortality Rates for Use in Determining Minimum Reserve Liabilities and Nonforfeiture Benefits. NAIC Proceedings, 1984 Volume I, pp. 458–460. Nothing in this rule permits a company which has elected use of 1980 CSO for all new forms to revert to 1958 CSO for a subsequent form. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 731, 733 & 743 Statutes/Other Implemented: ORS 733.306(1)-(2) & 733.306(4)-(6) History: IC 5-1985, f. & ef. 11-20-85
836-051-0150 Individual Deferred Annuities Surrender Charge Statutory Authority; Purpose; Applicability (1) OAR 836-051-0150 to 836-051-0156 are adopted pursuant to the authority granted to the Director of the Department of Consumer and Business Services in section 2, chapter 85, Oregon Laws 2015 to adopt rules to regulate the penalties, fees or other charges that an insurer imposes for a withdrawal, before maturity or after the owner or annuitant dies, from an individual deferred annuity policy. (2) OAR 836-051-0150 to 836-051-0156 apply to individual deferred non-variable annuity policies and to the fixed accounts of individual deferred variable annuity policies. (3) OAR 836-051-0150 to 836-051-0156 apply to contracts entered into on and after July 1, 2017. New contracts submitted for approval to the Department of Consumer and Business Services for effective dates on or after January 1, 2016 must comply with section 2, chapter 85, Oregon Laws 2015. Statutory/Other Authority: Sec. 2 & Ch. 85 OL 2015 Statutes/Other Implemented: Sec. 2 & Ch. 85 OL 2015 History: ID 17-2015, f. 12-29-15, cert. ef. 1-1-16
836-051-0153 Limitations on Surrender Charge Scales (1) For contracts where surrender charge scales are measured from the date of each premium payment an insurer must demonstrate compliance with minimum value either by: (a) Treating each premium payment as a separate single premium contract, in which case the maturity date for each single premium shall be the later of the tenth anniversary of the payment, or the annuitant’s 70th birthday; or (b) Treating the entire contract as a single contract providing for flexible premiums. (2) If minimum value compliance is demonstrated as described in section (1)(a) of this rule, the retrospective test minimum values must be the greater of those based on the contract being treated either as: (a) Each premium considered as a single premium contract, in which case the values for all such “contracts” will be summed; or (b) A single contract providing for flexible premiums. (3) An insurer may not impose a surrender charge on or after annuitization or on or after the maturity date. Statutory/Other Authority: Sec. 2 & Ch. 85 OL 2015 Statutes/Other Implemented: Sec. 2 & Ch. 85 OL 2015 History: ID 17-2015, f. 12-29-15, cert. ef. 1-1-16
836-051-0156 Fair Surrender Charges An insurer shall treat funds withdrawn from a contract, when such funds are subject to surrender charges, as withdrawn on a first-in-first-out basis unless the insurer allows an alternative method that is more beneficial to the contract holder. Statutory/Other Authority: Sec. 2 & Ch. 85 OL 2015 Statutes/Other Implemented: Sec. 2 & Ch. 85 OL 2015 History: ID 17-2015, f. 12-29-15, cert. ef. 1-1-16
836-051-0200 Authority; Effective Date OAR 836-051-0200 to 836-051-0250 are adopted by the Director of the Department of Consumer and Business Services pursuant to ORS 733.308. Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 15-1997, f. & cert. ef. 10-29-97
836-051-0210 Purpose The purpose of OAR 836-051-0200 to 836-051-0250 is to recognize the following mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts: (1) The 1983 Table "a". (2) The 1983 Group Annuity Mortality (1983 GAM) Table. (3) The Annuity 2000 Mortality Table. (4) The 2012 Individual Annuity Reserving (2012 IAR) Table. (5) The 1994 Group Annuity Reserving (1994 GAR) Table. [ED. NOTE: Tables referenced are available from the agency.] Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 20-2014, f. 12-16-14, cert. ef. 1-1-15 ID 15-1997, f. & cert. ef. 10-29-97
836-051-0220 Definitions For the purpose of OAR 836-051-0200 to 836-051-0250, the following terms have the following meanings: (1) "1983 Table 'a'" means that mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June 1982 by the National Association of Insurance Commissioners. (See 1982 Proceedings of the NAIC II, page 454.) (2) "1983 GAM Table" means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners. (See 1984 Proceedings of the NAIC I, pages 414 to 415.) (3) "1994 GAR Table" means that mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force and shown on pages 866-867 of Volume XLVII of the Transactions of the Society of Actuaries (1995). (4) “2012 IAR Table” means that Generational mortality table developed by the Society of Actuaries Committee on Life Insurance Research and containing rates, qx 2012+n, derived from a combination of the 2012 IAM Period Table and Projection Scale G2, using the methodology stated in Section 5. (5) “2012 Individual Annuity Mortality Period Life (2012 IAM Period) Table” means the Period table containing loaded mortality rates for calendar year 2012. This table contains rates, qx 2012, developed by the Society of Actuaries Committee on Life Insurance Research and is shown in Appendices 1-2. (6) "Annuity 2000 Mortality Table" means that mortality table developed by the Society of Actuaries Committee on Life Insurance Research and shown on page 240 of Volume XLVII of the Transactions of the Society of Actuaries (1995). (7) “Generational mortality table” means a mortality table containing a set of mortality rates that decrease for a given age from one year to the next based on a combination of a Period table and a projection scale containing rates of mortality improvement. (8) “Period table” means a table of mortality rates applicable to a given calendar year (the Period). (9) “Projection Scale G2 (Scale G2)” is a table of annual rates, G2x, of mortality improvement by age for projecting future mortality rates beyond calendar year 2012. This table was developed by the Society of Actuaries Committee on Life Insurance Research and is shown in Appendices 3-4. [ED. NOTE: Tables referenced are available from the agency.] Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 20-2014, f. 12-16-14, cert. ef. 1-1-15 ID 15-1997, f. & cert. ef. 10-29-97
836-051-0230 Individual Annuity or Pure Endowment Contracts (1) Except as provided in sections (2) and (3) of this rule, the 1983 Table "a" is recognized and approved as an individual annuity mortality table for valuation and, at the option of the insurer, may be used for purposes of determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after October 4, 1977. (2) Except as provided in section (3) of this rule, either the 1983 Table "a" or the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1998. (3) Except as provided in section (4) of this rule, the Annuity 2000 Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 1999. (4) Except as provided in section (5) of this rule, the 2012 IAR Mortality Table shall be used for determining the minimum standard of valuation for any individual annuity or pure endowment contract issued on or after January 1, 2015. (5) The 1983 Table "a" without projection is to be used for determining the minimum standards of valuation for an individual annuity or pure endowment contract issued on or after January 1, 1998, solely when the contract is based on life contingencies and is issued to fund periodic benefits arising from: (a) Settlements of various forms of claims pertaining to court settlements or out of court settlements from tort actions; (b) Settlements involving similar actions such as workers' compensation claims; or (c) Settlements of long term disability claims where a temporary or life annuity has been used in lieu of continuing disability payments. [ED. NOTE: Tables referenced are available from the agency.] Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 20-2014, f. 12-16-14, cert. ef. 1-1-15 ID 15-1997, f. & cert. ef. 10-29-97
836-051-0235 Application of the 2012 IAR Mortality Table (1) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows: q*x **2012+n** = qx**2012** (1 – G2x)**n**. The resulting qx 2012+n shall be rounded to three decimal places per 1,000, e.g., 0.741 deaths per 1,000. Also, the rounding shall occur according to the formula above, starting at the 2012 period table rate. (2) For example, for a male age 30, qx 2012= 0.741. qx 2013= 0.741 * (1 – 0.010) ^ 1 = 0.73359, which is rounded to 0.734. qx 2014= 0.741 * (1 – 0.010) ^ 2 = 0.7262541, which is rounded to 0.726. (3) A method leading to incorrect rounding would be to calculate qx 2014 as qx 2013 * (1 – 0.010), or 0.734 * 0.99 = 0.727. (4) It is incorrect to use the already rounded qx 2013 to calculate qx 2014. Statutory/Other Authority: ORS 731.244, ORS 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 20-2014, f. 12-16-14, cert. ef. 1-1-15
836-051-0240 Group Annuity or Pure Endowment Contracts (1) Except as provided in sections (1) and (2) of this rule, the 1983 GAM Table, the 1983 Table “a” and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the insurer, any one of these tables may be used for purposes of valuation for an annuity or pure endowment purchased on or after October 4, 1977, under a group annuity or pure endowment contract. (2) Except as provided in section (3) of this rule, either the 1983 GAM Table or the 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 1998. (3) The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after January 1, 2000, under a group annuity or pure endowment contract. [ED. NOTE: Tables referenced are available from the agency.] Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 15-1997, f. & cert. ef. 10-29-97
836-051-0250 Application of the 1994 GAR Table In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows: q*x **1994+n** = qx**1994** (1 - AAx)**n** where the qx**1994** and AAxs are as specified in the 1994 GAR Table. [ED. NOTE: Tables referenced are available from the agency.] Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 History: ID 15-1997, f. & cert. ef. 10-29-97
836-051-0300 Statutory Authority; Effective Date; Applicability (1) OAR 836-051-0300 to 836-051-0380 are adopted pursuant to ORS 743.154. (2) OAR 836-051-0300 to 836-051-0380 become effective on June 1, 1992. (3) No life insurance policy, certificate or rider containing an accelerated benefit provision may be delivered or issued for delivery in this state on or after June 1, 1992, unless the provision complies with OAR 836-051-0300 to 836-051-0380. (4) OAR 836-051-0300 to 836-051-0380 apply to individual and group life insurance policies and to riders and certificates issued thereunder. OAR 836-051-0300 to 836-051-0380 apply to all accelerated benefits provisions of life insurance policies except for provisions for advance payment of life insurance proceeds under 836-052-0500 to 836-052-0645. Statutory/Other Authority: ORS 731.244 & 743.154 Statutes/Other Implemented: ORS 743.154 History: ID 1-1996, f. & cert. ef. 1-12-96 ID 8-1992, f. 5-26-92, cert. ef. 6-1-92
836-051-0310 Acknowledgement of Concurrence for Payout from Assignee or Beneficiary Prior to payment of an accelerated benefit, an insurer shall obtain a signed acknowledgement of concurrence for payout as follows: (1) From an assignee, when the amount of benefit that is accelerated exceeds the unassigned portion of the death benefit, unless the assignee is the insurer. (2) From an irrevocable beneficiary, if there is an irrevocable beneficiary. Statutory/Other Authority: ORS 731.244 & 743.154 Statutes/Other Implemented: ORS 743.154 History: ID 8-1992, f. 5-26-92, cert. ef. 6-1-92