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Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-14 - Authority of insurers

Current through July 10, 2024
The following requirements are applicable to all insurers
				  either seeking authority to issue Modified Guaranteed Annuities in this state
				  or having authority to issue Modified Guaranteed Annuities in this
				  state.
(a)
Licensing and
				Approval to do Business.
(1) No company
				shall deliver or issue for delivery Modified Guaranteed Annuities within this
				state unless it is licensed or organized to do a life insurance or annuity
				business in this state, and the Commissioner is satisfied that its condition or
				method of operation in connection with the issuance of such contracts will not
				render its operation hazardous to the public or its policyholders in this
				state. In this connection, the Commissioner shall consider among other things
				the history and financial condition of the company; the character,
				responsibility and fitness of the officers and directors of the company; and
				the law and regulation under which the company is authorized in the state of
				domicile to issue such annuities.
(2) If the company is a subsidiary of an
				admitted life insurance company, or affiliated with such company by common
				management or ownership, it may be deemed by the Commissioner to have satisfied
				the provision of subdivision (1) of this subsection if either it or such
				admitted life company satisfies the aforementioned provisions; provided,
				further, that companies licensed and having a satisfactory record of doing
				business in this state for a period of at least three years may be deemed to
				have satisfied the Commissioner with respect to subdivision (1) of this
				subsection.
(3) Before any company
				shall deliver or issue for delivery such annuities within this state it shall
				submit to the Commissioner a general description of the kinds of such annuities
				it intends to issue; if requested by the Commissioner, a copy of the statutes
				and regulations of its state of domicile under which it is authorized to issue
				such annuities; and if requested by the Commissioner, biographical data with
				respect to officers and directors of the company on the National Association of
				Insurance Commissioners uniform biographical data forms.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-15 - Filing of contracts

Current through July 10, 2024
No Modified Guaranteed Annuity shall be delivered or issued
				  for delivery to any person in this state, nor shall any application, rider or
				  endorsement be used in connection therewith, until a copy of the forms thereof
				  shall have been filed with and approved by the Commissioner. Filings shall
				  include a demonstration in a form satisfactory to the Commissioner that the
				  nonforfeiture provisions of the contract(s) comply with subsection
				  38a-433-16(b).
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-16 - Modified guaranteed annuity contract requirements

Current through July 10, 2024
(a)
Mandatory Contract Benefit and
				Design Requirements
.
(1) Any Modified
				Guaranteed Annuity contract delivered or issued for delivery in this state
				shall contain a statement of the essential features of the procedures to be
				followed by the insurance company in determining the dollar amount of
				nonforfeiture benefits.
(2) No
				Modified Guaranteed Annuity contract calling for the payment of periodic
				stipulated payments shall be delivered or issued for delivery in this state
				unless it contains in substance the following provisions:
(A) A provision that there shall be a period
				of grace of thirty days or of one month, within which any stipulated payment to
				the insurer falling due after the first may be made, during which period of
				grace the contract shall continue in force. The contract may include a
				statement of the basis for determining the date as of which any such payment
				received during the period of grace shall be applied to produce the values
				under the contract arising therefrom;
(B) A provision that, at any time within one
				year from the date of default, in making periodic stipulated payments to the
				insurer during the life of the annuitant and unless the cash surrender value
				has been paid, the contract may be reinstated upon payment to the insurer of
				such overdue payments as required by contract, and of all indebtedness to the
				insurer on the contract, including interest. The contract may include a
				statement of the basis for determining the date as of which the amount to cover
				such overdue payments and indebtedness shall be applied to produce the values
				under the contract arising therefrom.
(3) The market-value adjustment formula, used
				in determining nonforfeiture benefits, must (A) be stated in the contract, (B)
				be applicable for both upward and downward adjustments, and (C) provide
				reasonable equity to both the contract holder and the insurance company. When a
				contract is filed with the Commissioner for approval, it must be accompanied by
				an actuarial statement indicating the basis for the market-value adjustment
				formula and that the formula provides reasonable equity to both the contract
				holder and the insurance company.
(4) If and to the extent so provided under
				the applicable contracts, that portion of the assets of any separate account
				equal to the reserves and other contract liabilities with respect to such
				account shall not be chargeable with liabilities arising out of any other
				business the company may conduct.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-17 - Reserve liabilities

Current through July 10, 2024
Reserve liabilities for Modified Guaranteed Annuities shall
				  be established in accordance with actuarial procedures that recognize:
(a) that assets of the separate account are
				based on market values,
(b) the
				variable nature of benefits provided, and
(c) any mortality guarantees.
As a minimum, the separate account liability will equal the
				  surrender value based upon the market-value adjustment formula contained in the
				  contract. If that liability is greater than the market value of the assets, a
				  transfer of assets will be made into the separate account so that the market
				  value of the assets at least equals that of the liabilities. Also, any
				  additional reserve that is needed to cover future guaranteed benefits will also
				  be set up by the valuation actuary.
The market-value adjustment formula, the interest guarantees,
				  and the degree to which projected cash flow of assets and liabilities are
				  matched must also be considered. Each year, the valuation actuary must provide
				  an opinion on whether the assets in the separate account are adequate to
				  provide all future benefits that are guaranteed.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-18 - Separate accounts

Current through July 10, 2024
The following requirements apply to the establishment and
				  administration of Modified Guaranteed Annuity separate accounts by any domestic
				  insurer:
(a)
Establishment and
				Administration of Separate Accounts.
Any domestic insurer issuing
				Modified Guaranteed Annuities shall establish one or more separate accounts
				pursuant to Section
				38a-433
				of the Connecticut General Statutes.
(b)
Amounts in the Separate
				Account.
The insurer shall maintain in each separate account assets with
				a market or other value comporting to standards set out in Section
				38a-433
				of the Connecticut General Statutes at least equal to the valuation reserves
				and other contract liabilities respecting such account.
(c)
Valuation of Separate Account
				Assets.
Investments of the separate account shall be valued at their
				market value on the date of valuation, or at amortized cost if it approximates
				market value, or pursuant to standards contained in Section
				38a-433
				of the Connecticut General Statutes.
(d)
Investment Laws.
Unless
				otherwise approved by the Commissioner, separate accounts relating to Modified
				Guaranteed Annuities will be subject to investment laws applicable to the
				insurer's general asset account.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-19 - Reports to policyholders

Current through July 10, 2024
Companies will annually provide their contractholders with a
				  report showing both the account value and the cash surrender value. The report
				  should clearly indicate that the account value is prior to the application of
				  any surrender charges or market value adjustment formula. It should also
				  specify the surrender charge and market value adjustment used to determine the
				  cash surrender value.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-20 - Foreign companies

Current through July 10, 2024
If the law or regulation in the place of domicile of a
				  foreign company provides a degree of protection to the policyholders and the
				  public which is substantially similar to that provided by these regulations,
				  the Commissioner to the extent deemed appropriate by him or her may consider
				  compliance with such law or regulation as compliance with this
				  rule.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-21 - Authorization of agents

Current through July 10, 2024
No person, corporation, partnership, or other legal entity
				  may sell or offer for sale in this state any Modified Guaranteed Annuity
				  contract unless licensed to sell variable annuities under the insurance laws of
				  this state.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Annuities › Section 38a-433-22 - Separability

Current through July 10, 2024
If any provision of this regulation or the application
				  thereof to any person or circumstance is for any reason held to be invalid, the
				  remainder of the regulation and the application of such provision to other
				  persons or circumstances shall not be affected thereby.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-23 - Definitions

Current through July 10, 2024
(a) "Modified Guaranteed Life Insurance
				Policy" means an individual policy of life insurance, the underlying assets of
				which are held in a separate account, and the values of which are guaranteed if
				held for specified periods. It contains nonforfeiture values that are based
				upon a market value adjustment formula if held for shorter periods. The formula
				may, or may not, reflect the value of assets held in the separate account. The
				assets underlying the policy must be in a separate account during the period,
				or periods, when the policyholder can surrender the policy.
(b) "Agent" has the same meaning as provided
				in section
				38a-702a of the
				Connecticut General Statutes.
(c)
				"Interest Credits" means all interest that is credited to the policy.
(d) "Commissioner" means the Insurance
				Commissioner of this state.
(e)
				"Person" means an individual, corporation, partnership, association, trust, or
				fund.
(f) "Separate account" means
				a separate account established pursuant to Section
				38a-433
				of the Connecticut General Statutes or pursuant to the corresponding Section of
				the Insurance Laws of the state of domicile of a foreign or alien
				insurer.
(g) "Policy processing
				day" means the day on which charges authorized in the policy are deducted from
				the policy's cash value.
(h)
				"Unadjusted cash value" is the cash value before application of the market
				value adjustment formula and any surrender charge contained in the
				policy.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-24 - Authority of insurers

Current through July 10, 2024
The following requirements are applicable to all insurers
				  either seeking authority to issue Modified Guaranteed Life Insurance in this
				  state or having authority to issue Modified Guaranteed Life Insurance in this
				  state.
(a)
Licensing and
				Approval to do Business
.
(1) No company
				shall deliver or issue for delivery Modified Guaranteed Life Insurance within
				this state unless it is licensed to do a life insurance or annuity business in
				this state, and the Commissioner is satisfied that its condition or method of
				operation in connection with the issuance of such contracts will not render its
				operation hazardous to the public or its policyholders in this state. In this
				connection, the Commissioner shall consider among other things the history and
				financial condition of the company; the character, responsibility and fitness
				of the officers and directors of the company; and the law and regulation under
				which the company is authorized in the state of domicile to conduct such
				business.
(2) If the company is a
				subsidiary of an admitted life insurance company, or affiliated with such
				company by common management or ownership, it may be deemed by the Commissioner
				to have satisfied the provision of subdivision (1) of this subsection if either
				it or such admitted life company satisfies the aforementioned provisions;
				provided, further, that companies licensed and having a satisfactory record of
				doing business in this state for a period of at least three years may be deemed
				to have satisfied the Commissioner with respect to subdivision (1) of this
				subsection.
(3) Before any company
				shall deliver or issue for delivery such life insurance within this state it
				shall submit to the Commissioner a general description of the kinds of such
				life insurance it intends to issue; if requested by the Commissioner, a copy of
				the statutes and regulations of its state of domicile under which it is
				authorized to issue such life insurance; and if requested by the Commissioner,
				biographical data with respect to officers and directors of the company on the
				NAIC uniform biographical data forms.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-25 - Filing requirements

Current through July 10, 2024
The filing requirements applicable to Modified Guaranteed
				  Life Insurance shall be those filing requirements otherwise applicable under
				  existing statutes and regulations of this state with respect to individual life
				  insurance policy form filings, to the extent appropriate; provided, however,
				  filings shall include a demonstration in a form satisfactory to the
				  Commissioner that the nonforfeiture provisions of the contract(s) comply with
				  Section
				  38a-433-26.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-26 - Policy requirements

Current through July 10, 2024
(a)
Mandatory
				Policy Benefit and Design Requirements.
Modified Guaranteed Life
				Insurance Policies delivered or issued for delivery in this state shall comply
				with the following minimum requirements.
(1)
				Mortality and expense risks shall be borne by the insurer. The mortality and
				expense charges shall be subject to the maximum stated in the
				contract.
(2) For scheduled premium
				policies, a minimum death benefit shall be provided in an amount at least equal
				to the initial face amount of the policy so long as premiums are duly paid
				(subject to the provisions of subdivision (b) (4) of this section).
(3) The cash value of each Modified
				Guaranteed Life Insurance Policy shall be determined at least monthly. The
				method of computation of cash values and other nonforfeiture benefits shall be
				described in the policy. The market value adjustment formula, used in
				determining nonforfeiture benefits, must be stated in the policy and must be
				applicable for both upward and downward adjustments. The insurer must submit an
				actuarial statement indicating the basis for the market value adjustment
				formula and that the formula provides reasonable equity to both the
				policyholder and the insurer.
(4)
				The insurer must demonstrate that, if the interest credits at all times from
				the date of issue equal those guaranteed in the policy, with premiums and
				benefits determined accordingly under the terms of the policy, then the
				resulting unadjusted cash values and other nonforfeiture benefits must be at
				least equal to the minimum values required by Section
				38a-78
				of the Connecticut General Statutes for a fixed benefit general account policy
				with such premiums and benefits.
Guaranteed interest credits in each year for any period of
				  time for which interest credits are guaranteed shall be reasonably related to
				  the average guaranteed interest credits over that period of time.
(5) At the end of any specified
				guarantee period, the policyowner may select a new guarantee period. At those
				times, the policyowner must have the option of selecting a guarantee period of
				not more than five years, or a guarantee period that runs to the end of the
				coverage period, if shorter.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-27 - Reserve liabilities

Current through July 10, 2024
Reserve liabilities for Modified Guaranteed Life Insurance
				  Policies shall be established in accordance with actuarial procedures that
				  recognize:
(1) that assets of the
				separate account are based on market value;
(2) the variable nature of the benefits
				provided; and
(3) any mortality
				guarantees.
As a minimum, the separate account liability will equal the
				  surrender value based upon the market value adjustment formula contained in the
				  policy. If that liability is greater than the market value of the assets, a
				  transfer of assets will be made into the separate account so that the market
				  value of the assets at least equals that of the liabilities. Any additional
				  reserve that is needed to cover future guaranteed benefits shall be
				  established.
The market value adjustment formula, the interest guarantees,
				  and the degree to which projected cash flow of assets and liabilities are
				  matched must also be considered. Each year the statement of actuarial opinion
				  accompanying the annual statement shall include an opinion on whether the
				  assets in the separate account are adequate to provide all future guaranteed
				  benefits.
Reserve liabilities for all fixed incidental insurance
				  benefits and any guarantees associated with variable incidental insurance
				  benefits shall be maintained in the general account.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-28 - Separate accounts

Current through July 10, 2024
The following requirements apply to the establishment and
				  administration of Modified Guaranteed Life Insurance separate accounts by any
				  domestic insurer:
(a)
Establishment and Administration of Separate Accounts.
Any
				domestic insurer issuing Modified Guaranteed Life Insurance shall establish one
				or more separate accounts pursuant to Section
				38a-433
				of the Connecticut General Statutes.
(b)
Amounts in the Separate
				Account.
The insurer shall maintain in each separate account assets with
				a market or other value comporting to standards set out in Section
				38a-433
				of the Connecticut General Statutes at least equal to the valuation reserves
				and other contract liabilities respecting such account.
(c)
Valuation of Separate Account
				Assets.
Investments of the separate account shall be valued at their
				market value on the date of valuation, or at amortized cost if it approximates
				market value, or pursuant to standards contained in Section
				38a-433
				of the Connecticut General Statutes.
(d)
Investment Laws.
Unless
				otherwise approved by the Commissioner, assets held in separate accounts
				relating to Modified Guaranteed Life Insurance will be considered general
				account assets for purposes of the investment laws.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-29 - Information furnished to applicants

Current through July 10, 2024
An insurer delivering or issuing for delivery in this state
				  any Modified Guaranteed Life Insurance Policy shall deliver to the applicant
				  for the policy, and obtain a written acknowledgment of receipt from such
				  applicant coincident with or prior to the execution of the application, the
				  following information. The requirements of this section shall be deemed to have
				  been satisfied to the extent that a disclosure containing information required
				  by this section is delivered, either in the form of (1) a prospectus which is
				  part of an effective registration statement under the Securities Act of 1933;
				  or (2) all information and reports required by the Employee Retirement Income
				  Securities Act of 1974 if the policies are exempted from the registration
				  requirements of the Securities Act of 1933.
(a) A summary explanation, in non-technical
				terms, of the principal features of the policy, including a description of the
				manner in which the nonforfeiture benefits will be affected by the market value
				adjustment formula and the factors which affect such variation. Such
				explanation must include notices of the provision required by subdivision (b)
				(1) (B) of section
				38a-433-26;
(b) A summary of the federal income tax
				aspects of the policy applicable to the insured, the policyholder and the
				beneficiary;
(c) Illustrations of
				benefits payable under the Modified Guaranteed Life Insurance Policy. Such
				illustrations shall be prepared by the insurer and shall not include
				projections of past investment experience into the future or attempted
				predictions of future investment experience, provided that nothing contained
				herein prohibits use of hypothetical assumed rates of return to illustrate
				possible levels of benefits if it is made clear that such assumed rates are
				hypothetical only.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-30 - Applications

Current through July 10, 2024
The application for a Modified Guaranteed Life Insurance
				  Policy shall contain:
(1) immediately
				preceding the signature line, language denoting that amounts payable under the
				policy are subject to a market value adjustment prior to a date or dates
				specified in the policy; and
(2)
				questions designed to elicit information which enables the insurer to determine
				the suitability of Modified Guaranteed Life Insurance for the
				applicant.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-31 - Reports to policyholders

Current through July 10, 2024
Any insurer delivering or issuing for delivery in this state
				  any Modified Guaranteed Life Insurance Policies shall mail to each Modified
				  Guaranteed Life Insurance Policyholder at his or her last known address the
				  following reports:
(a) Within thirty
				days after each anniversary of the policy, a report showing the unadjusted cash
				value, the cash surrender value, death benefit, any partial withdrawal or
				policy loan, any interest charge, and any optional payments allowed under the
				policy computed as of the policy anniversary date. The report should clearly
				indicate that the unadjusted cash value is prior to the application of any
				surrender charges or market value adjustment formula. It should also specify
				the surrender charge and market value adjustment used to determine the cash
				surrender value. Provided, however, that such report may be furnished within
				thirty days after a specified date in each policy year so long as the
				information contained therein is computed as of a date not more than sixty days
				prior to the mailing of such notice. This statement shall state that, in
				accordance with the market value adjustment formula, the cash values may
				increase or decrease, and shall prominently identify any value described
				therein which may be recomputed prior to the next statement required by this
				section. For flexible premium policies, the report must contain a
				reconciliation of the change since the previous report in unadjusted cash value
				and cash surrender value, if different, because of payments made (less
				deductions for expense charges), withdrawals, investment experience, insurance
				charges and any other charges made against the cash value. In addition, the
				report must show the projected unadjusted cash value and cash surrender value,
				if different, as of one year from the end of the period covered by the report
				assuming that:
(1) planned periodic premiums,
				if any, are paid as scheduled;
(2)
				guaranteed costs of insurance are deducted; and
(3) interest is credited at the guaranteed
				rate or, in the absence of a guaranteed rate, at a rate not greater than zero.
				If the projected value is less than zero, a warning message must be included
				that states that the policy may be in danger of terminating without value in
				the next 12 months unless additional premium is paid.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-32 - Foreign companies

Current through July 10, 2024
If the law or regulation in the place of domicile of a
				  foreign company provides a degree of protection to the policyholders and the
				  public which is substantially similar to that provided by these regulations,
				  the Commissioner to the extent deemed appropriate by him in his discretion, may
				  consider compliance with such law or regulation as compliance with these
				  regulations.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-33 - Authorization of agents

Current through July 10, 2024
No person, corporation, partnership, or other legal entity
				  may sell or offer for sale in this state any Modified Guaranteed Life Insurance
				  Policy unless licensed to sell variable life insurance or variable annuity in
				  this state.
Connecticut Administrative Code › Title 38a - Insurance Department › 433 - Variable Life Insurance › Modified Guaranteed Life Insurance › Section 38a-433-34 - Separability

Current through July 10, 2024
If any provision of this regulation or the application
				  thereof to any person or circumstance is for any reason held to be invalid, the
				  remainder of the regulation and the application of such provision to other
				  persons or circumstances shall not be affected thereby.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-1 - Purpose and Scope

Current through July 10, 2024
(a) The purpose of
			 sections 38a-435-1 to 38-435-8, inclusive, of the Regulations of Connecticut
			 State Agencies is:
(1) To regulate the
			 activities of insurers and producers with respect to the replacement of
			 existing life insurance and annuities.
(2) To protect the interests of life
			 insurance and annuity purchasers by establishing minimum standards of conduct
			 to be observed in replacement or financed purchase transactions, which will:
(A) Ensure that purchasers receive
			 information with which a decision can be made in his or her own best interest;
			 and
(B) Reduce the opportunity for
			 misrepresentation and incomplete disclosure.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-3 - Duties of Producers

Current through July 10, 2024
(a) A producer who
			 initiates an application shall submit to the insurer, with or as part of the
			 application, a statement signed by both the applicant and the producer as to
			 whether the applicant has existing policies or contracts. If the answer is
			 "no," the producer's duties with respect to replacement are complete.
(b) If the applicant answered "yes" to the
			 question regarding existing coverage referred to in subsection (a) of this
			 section, the producer shall present and read to the applicant, not later than
			 at the time of taking the application unless such reading has been waived by
			 the applicant, a notice regarding replacements in the form as described in
			 Appendix A of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies or other substantially similar form
			 approved by the commissioner. However, no approval shall be required when
			 amendments to the notice are limited to the omission of references not
			 applicable to the product being sold or replaced. The notice shall be signed by
			 both the applicant and the producer attesting that the notice has been read
			 aloud by the producer or that the applicant did not wish the notice to be read
			 aloud, and a copy left with the applicant.
(c) The notice shall list all policies or
			 contracts proposed to be replaced, identified by name of the existing insurer,
			 name of the insured or annuitant, and policy or contract number if available;
			 and shall include a statement as to whether each policy or contract will be
			 replaced or whether a policy will be used as a source of financing for the new
			 policy or contract. If a policy or contract number has not been issued by the
			 existing insurer, alternative identification, such as an application or receipt
			 number, shall be listed.
(d) In
			 connection with a replacement, the producer shall leave with the applicant at
			 the time an application for a new policy or contract is completed, the original
			 or a copy of all sales material. With respect to electronically presented sales
			 material, it shall be provided to the policy or contract owner in printed form
			 no later than at the time of policy or contract delivery.
(e) Except as provided in section
			 38a-435-5(c) of
			 the Regulations of Connecticut State Agencies, in connection with a
			 replacement, the producer shall submit to the insurer to which an application
			 for a policy or contract is presented, a copy of each document required by this
			 section, a statement identifying any preprinted or electronically presented
			 company approved sales material used, and copies of any individualized sales
			 material, including any illustrations related to the specific policy or
			 contract purchased.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-4 - Duties of Insurers that Use Producers

Current through July 10, 2024
Each insurer that uses producers shall:
(a) Maintain a system of supervision and
			 control to ensure compliance with the requirements of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies. Such system may include, but need
			 not be limited to, systematic customer surveys, interviews, conformation
			 letters or internal monitoring programs, and shall include at least the
			 following:
(1) Informing its producers of the
			 requirements of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies and incorporate the requirements of
			 sections 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies into all relevant producer training
			 manuals prepared by the insurer;
(2) Providing to each producer a written
			 statement of the company's position with respect to the acceptability of
			 replacements and providing guidance to its producer as to the appropriateness
			 of these transactions;
(3) A system
			 to review the appropriateness of each replacement that the producer does not
			 indicate is in accord with subdivision (2) of this subsection;
(4) Procedures to confirm that the
			 requirements of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies have been met; and
(5) Procedures to detect transactions that
			 are replacements of existing policies or contracts by the existing insurer, but
			 that have not been reported as such by the applicant or producer.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-5 - Duties of Replacing Insurers that Use Producers

Current through July 10, 2024
(a) Where
			 a replacement is involved in the transaction, the replacing insurer shall:
(1) Verify that the required forms are
			 received and are in compliance with sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies;
(2) Notify any existing insurer that may be
			 affected by the proposed replacement not later than five (5) business days
			 after receiving a completed application indicating replacement or when the
			 replacement is identified if not indicated on the application. The replacing
			 insurer shall mail a copy of the available illustration or policy summary for
			 the proposed policy or available disclosure document for the proposed contract
			 to the existing insurer or applicant not later than five (5) business days
			 after receiving a request from an existing insurer;
(3) Be able to produce copies of the
			 notification regarding replacement required in section
			 38a-435-3(b) of
			 the Regulations of Connecticut State Agencies, indexed by producer, for at
			 least five (5) years from the date of the replacement application or until the
			 next regular examination by the insurance department of a company's state of
			 domicile, whichever is later; and
(4) Provide to the policy or contract owner
			 notice of the right to return the policy or contract not later than ten (10)
			 days after receiving the policy or contract and receive an unconditional full
			 refund of all premiums or considerations paid on it, including any policy fees
			 or charges or, in the case of a variable or market value adjustment policy or
			 contract, a payment of the cash surrender value provided under the policy or
			 contract plus the fees and other charges deducted from the gross premiums or
			 considerations or imposed under such policy or contract. Such notice may be
			 included in the notice described in Appendix A or C of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-6 - Duties of the Existing Insurer

Current through July 10, 2024
Where a replacement is involved in the transaction, the
				existing insurer shall:
(1) Retain and
			 be able to produce all replacement notifications received, indexed by replacing
			 insurer, for at least five (5) years from the date of the replacement
			 application or until the conclusion of the next regular examination conducted
			 by the Insurance Department of its state of domicile, whichever is
			 later.
(2) Send a letter to the
			 policy or contract owner of the right to receive information regarding the
			 existing policy or contract values including, if available, an in force
			 illustration, or if an in force illustration cannot be produced not later than
			 five (5) business days after receiving a notice that an existing policy or
			 contract is being replaced, a policy summary. The information shall be provided
			 not later than five (5) business days after receiving the request from the
			 policy or contract owner.
(3) Upon
			 receipt of a request to borrow, surrender or withdraw any policy values, send a
			 notice to the policy owner, advising the policy owner that the release of
			 policy values may affect the guaranteed elements, non-guaranteed elements, face
			 amount or surrender value of the policy from which the values are released. The
			 notice shall be sent separate from the check if the check is sent to anyone
			 other than the policy owner. In the case of consecutive automatic premium
			 loans, the insurer is only required to send the notice at the time of the first
			 loan.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-7 - Duties of Insurers with Respect to Direct Response Solicitations

Current through July 10, 2024
(a) In the case of an application that is
			 initiated as a result of a direct response solicitation, the insurer shall
			 require, with or as part of each completed application for a policy or
			 contract, a statement asking whether the applicant, by applying for the
			 proposed policy or contract, intends to replace, discontinue or change an
			 existing policy or contract. If the applicant indicates a replacement or change
			 is not intended or if the applicant fails to respond to the statement, the
			 insurer shall send the applicant, with the policy or contract, a notice
			 regarding replacement as described in Appendix B of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies, or other substantially similar form
			 approved by the commissioner.
(b)
			 If the insurer has proposed the replacement or if the applicant indicates a
			 replacement is intended and the insurer continues with the replacement, the
			 insurer shall:
(1) Provide to applicants or
			 prospective applicants with the policy or contract a notice, as described in
			 Appendix C of sections
			 38a-435-1 to
			 38a-435-8, inclusive, of the
			 Regulations of Connecticut State Agencies, or other substantially similar form
			 approved by the commissioner. In these instances the insurer may delete the
			 references to the producer, including the producer's signature, and references
			 not applicable to the product being sold or replaced, without having to obtain
			 approval of the form from the commissioner. The insurer shall make a reasonable
			 effort to obtain the applicant's signature on such notice. The insurer's
			 obligation to make a reasonable effort to obtain the applicant's signature
			 shall be satisfied if it can demonstrate that it has made a diligent effort to
			 secure a signed copy of the notice referred to in this subdivision. The
			 requirement to make a diligent effort shall be deemed satisfied if the insurer
			 includes in the mailing a self-addressed postage prepaid envelope with
			 instructions for the return of the signed notice referred to in this section;
			 and
(2) Comply with the
			 requirements of section
			 38a-435-5(a)(2)
			 of the Regulations of Connecticut State Agencies if the applicant furnishes the
			 names of the existing insurers, and the requirements of sections
			 38a-435-5(a)(3),
			 38a-435-5(a)(4),
			 and 38a-435-5(b) of
			 the Regulations of Connecticut State Agencies.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Section 38a-435-8 - Severability

Current through July 10, 2024
If any section or portion of a section of this regulation, or
				its applicability to any person or circumstances, is held invalid by a court,
				the remainder of this regulation, or the applicability of its provisions to
				other persons, shall not be affected.
Connecticut Administrative Code › Title 38a - Insurance Department › 435 - Requirements for the Replacement of Life Insurance and Annuities › Appendix B

Current through July 10, 2024
NOTICE REGARDING REPLACEMENT
REPLACING YOUR LIFE INSURANCE POLICY OR
				ANNUITY?
Are you thinking about buying a new life insurance policy or
				annuity and discontinuing or changing an existing one? If you are, your
				decision could be a good one-or a mistake. You will not know for sure unless
				you make a careful comparison of your existing benefits and the proposed policy
				or contract's benefits.
Make sure you understand the facts. You should ask the company
				or agent that sold you your existing policy or contract to give you information
				about it.
Hear both sides before you decide. This way you can be sure you
				are making a decision that is in your best interest.
Connecticut Administrative Code › Title 38a - Insurance Department › 439 - Mortality Tables: Minimum Nonforfeiture Benefits › Determining Minimum Nonforfeiture Benefits › Section 38a-439-1 - Purpose

Current through July 10, 2024
NAIC Model Regulation Permitting Smoker/Nonsmoker Mortality
				  Tables for Use in Determining Minimum Nonforfeiture Benefits
The purpose of Sections
				  38a-439-2 to
				  38a-439-4, inclusive,
				  is to permit the use of mortality tables that reflect differences in mortality
				  between smokers and nonsmokers in determining minimum cash surrender values and
				  amounts of paid-up nonforfeiture benefits for plans of insurance with separate
				  premium rates for smokers and nonsmokers.
Connecticut Administrative Code › Title 38a - Insurance Department › 439 - Mortality Tables: Minimum Nonforfeiture Benefits › Determining Minimum Nonforfeiture Benefits › Section 38a-439-2 - Definitions

Current through July 10, 2024
As used in Sections
				  38a-439-3 and
				  38a-439-4:
(a) "1980 CSO Table, with or without Ten-Year
				Select Mortality Factor" means that mortality table, consisting of separate
				rates of mortality for male and female lives, developed by the Society of
				Actuaries Committee to Recommend New Mortality Tables for Valuation of Standard
				Individual Ordinary Life Insurance, incorporated in the 1980 NAIC Amendments to
				the Model Standard Valuation Law and Standard Nonforfeiture Law for Life
				Insurance, and referred to in those models as the Commissioners 1980 Standard
				Ordinary Mortality Table, with or without Ten-Year Select Mortality Factors.
				The same select factors will be used for both smokers and nonsmokers
				tables.
(b) "1980 CET Table" means
				that mortality table consisting of separate rates of mortality for males and
				females lives, developed by the Society of Actuaries Committee to Recommend New
				Mortality Tables for Valuation of Standard Individual Ordinary Life Insurance,
				incorporated in the 1980 NAIC Amendments to the Model Standard Nonforfeiture
				Law for Life Insurance, and referred to in those models as the Commissioners
				1980 Extended Term Insurance Table.
(c) "1958 CSO Table" means that mortality
				table developed by the Society of Actuaries Special Committee on New Mortality
				Tables, incorporated in the NAIC Model Standard Nonforfeiture Law for Life
				Insurance, and referred to in that model as the Commissioners 1958 Ordinary
				Mortality Table.
(d) "1958 CET
				Table" means that mortality table developed by the Society of Actuaries Special
				Committee on New Mortality Tables, incorporated in the NAIC Model Standard
				Nonforfeiture Law for Life Insurance, and referred to in that model as the
				Commissioners 1958 Extended Term Insurance Table.
(e) The phrase "smoker and nonsmoker
				mortality tables" refers to the mortality tables with separate rates of
				mortality for smokers and nonsmokers derived from the tables defined in
				subsections (a) through (d) of this section which were developed by the Society
				of Actuaries Task Force on Smoker/Nonsmoker Mortality and recommended by the
				NAIC Technical Staff Actuarial Group.
(f) The phrase "composite mortality tables"
				refers to the mortality tables defined in subsections (a) through (d) of this
				section as they were originally published with rates of mortality that do not
				distinguish between smokers and nonsmokers.
Connecticut Administrative Code › Title 38a - Insurance Department › 439 - Mortality Tables: Minimum Nonforfeiture Benefits › Determining Minimum Nonforfeiture Benefits › Section 38a-439-3 - Alternate tables

Current through July 10, 2024
(a) For any policy
				of insurance delivered or issued for delivery in this state on or after the
				date of election pursuant to Section
				38a-439(e)
				(11) of the General Statutes for that policy
				form, but prior to January 1, 1989, a company may, subject to the conditions of
				Section
				38a-439-4, substitute
				for use in determining minimum cash surrender values and amounts of paid up
				nonforfeiture benefits:
(1) the 1958 CSO
				Smoker and Nonsmoker Mortality Tables for the 1980 CSO Table, with or without
				Ten-Year Select Mortality Factors; and
(2) the 1958 CET Smoker and Nonsmoker
				Mortality Tables for the 1980 CET Table. Provided that for any category of
				insurance issued on female lives with minimum cash surrender values and amounts
				of paid-up nonforfeiture benefits determined using the 1958 CSO or 1958 CET
				Smoker and Nonsmoker Mortality Tables, such minimum values may be calculated
				according to an age not more than six years younger than the actual age of the
				insured. Provided further that the substitution of the 1958 CSO or 1958 CET
				Smoker and Nonsmoker Mortality Tables is available only if made for each policy
				of insurance on a policy form delivered or issued for delivery on or after the
				operative date for that policy form and before a date not later than January 1,
				1989.
Connecticut Administrative Code › Title 38a - Insurance Department › 439 - Mortality Tables: Minimum Nonforfeiture Benefits › Determining Minimum Nonforfeiture Benefits › Section 38a-439-4 - Conditions

Current through July 10, 2024
For each plan of insurance with separate rates for smokers
				  and nonsmokers, an insurer may:
(a)
				use composite mortality tables to determine minimum cash surrender values and
				amounts of paid-up nonforfeiture benefits; or
(b) use smoker and nonsmoker mortality to
				determine minimum cash surrender values and amounts of paid-up nonforfeiture
				benefits.
Connecticut Administrative Code › Title 38a - Insurance Department › 439 - Mortality Tables: Minimum Nonforfeiture Benefits › NAIC Procedure for Permitting Same Minimum Nonforfeiture Standards for Men and Women Under 1980 CSO and 1980 CET Mortality Tables › Section 38a-439-5 - Purpose

Current through July 10, 2024
The purpose of Sections
				  38a-439-6 to
				  38a-439-8,
				  inclusive, is to permit individual life insurance policies to provide the same
				  cash values and paid-up nonforfeiture benefits to both men and women. No change
				  in minimum valuation standards is implied by this rule.