reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.40 - Policies to Be Illustrated

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
			 insurer marketing policies pursuant to this Part shall notify the Director
			 whether a policy form is to be marketed with or without an illustration. For
			 all policy forms being actively marketed on June 1, 1998, the insurer shall
			 give written notice to the Director identifying which policy forms it was
			 marketing on June 1, 1998, and the insurer must also indicate whether or not an
			 illustration is used in marketing each policy identified. This written notice
			 must be filed with the Life/Accident and Health Compliance Unit of the
			 Department of Insurance by June 1, 1998, and must include the policy form
			 number and filing number. For policy forms filed after June 1, 1998, the
			 identification shall be made at the time of filing. Written notice must also be
			 given to the Director if an insurer changes the usage of an illustration when
			 marketing a previously identified policy form. Such notice must be filed with
			 the Life/Accident and Health Compliance Unit of the Department of Insurance
			 within 60 days after such change.
b) If the insurer identifies a policy form as
			 one to be marketed without an illustration, any use of an illustration for any
			 policy using that form prior to the first policy anniversary is
			 prohibited.
c) If a policy form is
			 identified by the insurer as one to be marketed with an illustration, a basic
			 illustration prepared and delivered in accordance with this Part is required,
			 except that a basic illustration need not be provided to individual members of
			 a group or to individuals insured under multiple lives coverage issued to a
			 single applicant unless the coverage is marketed to these individuals. The
			 illustration furnished an applicant for a group life insurance policy or
			 policies issued to a single applicant on multiple lives may be either an
			 individual or composite illustration representative of the coverage on the
			 lives of members of the group or the multiple lives covered.
d) Potential enrollees of non-term group life
			 subject to this Part shall be furnished a quotation with the enrollment
			 materials. The quotation shall show potential policy values for sample ages and
			 policy years on a guaranteed and non-guaranteed basis appropriate to the group
			 and the coverage. This quotation shall not be considered an illustration for
			 purposes of this Part, but all information provided shall be consistent with
			 the illustrated scale. A basic illustration shall be provided at delivery of
			 the certificate to enrollees for non-term group life who enroll for more than
			 the minimum premium necessary to provide pure death benefit protection. In
			 addition, the insurer shall make a basic illustration available to any non-term
			 group life enrollee who requests it.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.60 - Standards for Supplemental Illustrations

Current through Register Vol. 48, No. 28, July 12, 2024
a) A supplemental illustration may be
			 provided so long as:
1) It is appended to,
			 accompanied by or preceded by a basic illustration that complies with this
			 Part;
2) The non-guaranteed
			 elements shown are not more favorable to the policyowner than the corresponding
			 elements based on the scale used in the basic illustration;
3) It contains the same statement required of
			 a basic illustration that non-guaranteed elements are not guaranteed;
			 and
4) For a policy that has a
			 contract premium, the contract premium underlying the supplemental illustration
			 is equal to the contract premium shown in the basic illustration. For policies
			 that do not require a contract premium, the premium outlay underlying the
			 supplemental illustration shall be equal to premium outlay shown in the basic
			 illustration.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.70 - General Rules and Prohibitions

Current through Register Vol. 48, No. 28, July 12, 2024
a) An
			 illustration used in the sale of an individual or group life insurance policy
			 shall satisfy the applicable requirements of this Part, be clearly labeled
			 "Life Insurance Illustration" and contain the following basic information:
1) Name of insurer;
2) Name and business address of insurance
			 producer or insurer's authorized representative, if any;
3) Name, age and sex of proposed insured,
			 except where a composite illustration is permitted pursuant to this
			 Part;
4) Underwriting or rating
			 classification upon which the illustration is based;
5) Generic name of policy, the insurer
			 product name, if different, and form number;
6) Initial death benefit; and
7) Dividend option election or application of
			 non-guaranteed elements, if applicable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.80 - Delivery of Illustrations and Record Retention

Current through Register Vol. 48, No. 28, July 12, 2024
a) If a basic illustration:
1) Is used by an insurance producer or other
			 authorized representative of the insurer in the sale of a life insurance policy
			 and the policy is applied for as illustrated, a copy of that illustration,
			 signed in accordance with Section
			 1406.50(d)(2),
			 shall be submitted to the insurer at the time of policy application. A copy
			 also shall be provided to the applicant.
2) Is revised due to the policy being issued
			 other than as applied for, a revised basic illustration conforming to the
			 policy as issued shall be sent with the policy. The revised illustration shall
			 conform to the requirements of this Part, shall be labeled "Revised
			 Illustration" and shall be signed and dated by the applicant or policyowner and
			 insurance producer or other authorized representative of the insurer no later
			 than the time the policy is delivered. A copy shall be provided to the insurer
			 and the policyowner.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.90 - Annual Report - Notice to Policyowners

Current through Register Vol. 48, No. 28, July 12, 2024
a) In the case of a policy designated as one
			 for which illustrations will be used, the insurer shall provide each
			 policyowner with an annual report on the status of the policy that shall
			 contain at least the following information:
1) For universal life policies, the report
			 shall include the following:
A) The beginning
			 and end date of the current report period;
B) The policy value at the end of the
			 previous report period and at the end of the current report period;
C) The total amounts that have been credited
			 or debited to the policy value during the current report period, identifying
			 each by type (e.g., interest, mortality, expense and riders);
D) The current death benefit at the end of
			 the current report period on each life covered by the policy;
E) The net cash surrender value of the policy
			 as of the end of the current report period;
F) The amount of outstanding loans, if any,
			 as of the end of the current report period; and
G) Either:
i) For fixed premium policies, if, assuming
			 guaranteed interest, mortality and expense loads and continued scheduled
			 premium payments, the policy's net cash surrender value is such that it would
			 not maintain insurance in force until the end of the next reporting period, a
			 notice to this effect shall be included in the report; or
ii) For flexible premium policies, if,
			 assuming guaranteed interest, mortality and expense loads, the policy's net
			 cash surrender value will not maintain insurance in force until the end of the
			 next reporting period unless further premium payments are made, a notice to
			 this effect shall be included in the report.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.100 - Annual Certifications

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 Board of Directors of each insurer shall appoint one or more illustration
			 actuaries.
b) The illustration
			 actuary shall certify that the disciplined current scale used in illustrations
			 is in conformity with the Actuarial Standard of Practice No. 24, Compliance
			 with the NAIC Life Insurance Illustrations Model Regulation promulgated by the
			 Actuarial Standards Board (ASB), as of December 2016 (no subsequent dates or
			 editions), 1850 M Street NW, Suite 300, Washington DC 20006; website
http://www.actuarialstandardsboard.org/
),
			 and that the illustrated scales used in insurer-authorized illustrations meet
			 the requirements of this Part.
c)
			 The illustration actuary shall:
1) Be a
			 member of the American Academy of Actuaries;
2) Be familiar with the standard of practice
			 regarding life insurance policy illustrations;
3) Not have been found by the Director,
			 following appropriate notice and hearing, to have:
A) Violated any provision of, or any
			 obligation imposed by, the insurance law or other law in the course of his or
			 her dealings as an illustration actuary;
B) Been found guilty of fraudulent or
			 dishonest practices;
C)
			 Demonstrated his or her incompetence, lack of cooperation, or untrustworthiness
			 to act as an illustration actuary; or
D) Resigned or been removed as an
			 illustration actuary within the past 5 years as a result of acts or omissions
			 indicated in any adverse report on examination or as a result of a failure to
			 adhere to generally acceptable actuarial standards;
4) Not fail to notify the Director of any
			 action taken by a commissioner of another state similar to that identified
			 under subsection (c)(3);
5)
			 Disclose in the annual certification whether, since the last certification, a
			 currently payable scale applicable for business issued within the previous 5
			 years and within the scope of the certification has been reduced for reasons
			 other than changes in the experience factors underlying the disciplined current
			 scale. If non-guaranteed elements illustrated for new policies are not
			 consistent with those illustrated for similar in force policies, this must be
			 disclosed in the annual certification. If non-guaranteed elements illustrated
			 for both new and in force policies are not consistent with the non-guaranteed
			 elements actually being paid, charged or credited to the same or similar forms,
			 this must be disclosed in the annual certification; and
6) Disclose, in the annual certification, the
			 method, of the following, used to allocate overhead expenses for all
			 illustrations:
A) Fully allocated
			 expenses;
B) Marginal expenses;
			 or
C) A generally recognized
			 expense table based on fully allocated expenses representing a significant
			 portion of insurance companies and approved by the NAIC or by the
			 Director.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS › Section 1406.110 - Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
In addition to any penalties authorized by the Illinois
				Insurance Code, an insurer or insurance producer who violates a requirement of
				this Part may be in violation of other State laws or
				regulations.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.10 - Purpose and Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to regulate accelerated benefit
				provisions in individual and group life insurance policies, contracts, riders,
				endorsements or amendments and to provide required standards of disclosure.
				This Part is not applicable to long-term care policies, contracts, riders,
				endorsements or amendments subject to the provisions of Article XIXA of the
				Illinois Insurance Code [215 ILCS 5/351A-1 through 351 A-11] or to long-term
				care partnership policies subject to provisions of the Partnership for
				Long-Term Care Act [320 ILCS 35 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Accelerated Benefits" means amounts payable in advance of the
				time life insurance benefits would otherwise be payable because of the
				occurrence of a terminal illness or a qualified covered condition.
"Code" means the Illinois Insurance Code [ 215 ILCS 5 ].
"Qualified Actuary" has the meaning ascribed in Section 223(13)
				of the Code.
"Qualified Covered Condition" means, but is not limited to, any
				one of the separate covered conditions as set forth in Section 4, Class 1(a) of
				the Code the occurrence of which may result in the payment of an accelerated
				benefit of up to 75% of the face amount of the policy.
"Terminal Illness" means a medical condition that, in the
				opinion of a physician who is licensed to practice medicine in all of its
				branches, would generally result in the insured's death within 24 months, or
				any condition that requires continuous confinement in an eligible institution
				as defined by the contract if the insured is expected to remain there until
				death.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.30 - Form Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
No policies, contracts, riders, endorsements or amendments
				which provide for accelerated benefits may be issued for delivery in this State
				unless they meet the following requirements.
a) General Standards and Practices
1) The name given to the coverage must be
			 descriptive of the coverage provided and the terminology "accelerated benefit"
			 shall be included in the descriptive title. Products regulated under this Part
			 shall not be described or marketed as long-term care insurance, as providing
			 long-term care benefits, or as long-term care partnership insurance.
2) The death benefit net of any outstanding
			 policy loans shall not be reduced by more than the amount of the accelerated
			 benefits and any applicable accrued interest, or any applicable actuarial
			 present value discount appropriate to the policy design.
3) The renewability and cost of any
			 accelerated benefit life insurance policy must be guaranteed for the term of
			 the policy or rider. This requirement will not apply to coverage in which the
			 insurer pays the present value of the life insurance face amount based on an
			 applicable actuarial discount. The requirements of this subsection are not
			 applicable to group insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.40 - Standards for Claims Payment

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Before payment of any benefits the insurer may require medical evidence of the
			 terminal illness or qualified condition, including clinical, radiological,
			 histological or laboratory evidence of the condition. Insurers shall evaluate
			 the medical evidence and may order their own medical examinations.
b) Prior to payment of the accelerated
			 benefit, the insurer is required to obtain from an assignee or irrevocable
			 beneficiary a signed acknowledgement of concurrence for payout. If the insurer
			 making the accelerated benefit is itself the assignee under the policy, no
			 acknowledgement is required.
c)
			 Lump Sum Settlement Option Required. Contract payment options shall include the
			 option to take the benefit as a lump sum. The benefit shall not be made
			 available as an annuity contingent upon the life of the insured.
d) Restrictions on Use of Proceeds. No
			 restrictions are permitted on the use of the proceeds.
e) Accidental Death Benefit Provision. If any
			 death benefit remains after payment of an accelerated benefit, the accidental
			 death benefit provisions, if any, in the policy or rider shall not be affected
			 by the payment of the accelerated benefit.
f) The insurer shall maintain in its files
			 descriptions of the bases and procedures used to calculate benefits payable
			 under these provisions. These descriptions shall be made available for
			 examination by the Director upon request.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.50 - Required Disclosure Provisions

Current through Register Vol. 48, No. 28, July 12, 2024
Solicitations:
a) If
			 there is a premium or cost of insurance charge, the insurer shall give the
			 applicant a generic illustration numerically demonstrating any effect of the
			 payment of the accelerated benefit on the policy's cash value, accumulation
			 account, death benefit, premium, policy loans and policy liens.
1) In the case of producer solicited
			 insurance, the producer shall provide the illustration to the applicant prior
			 to or concurrently with the application.
2) In the case of direct mail solicitations,
			 the insurer shall provide the illustration to the applicant at the time the
			 policy is delivered.
3) Information
			 on the policy or certificate values shall be furnished by the company upon the
			 request of the policyowner or certificateholder.
4) In the case of group insurance policies,
			 the disclosure form shall be contained as part of the certificate of coverage
			 or any related document furnished by the insurer for the
			 certificateholder.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.60 - Actuarial Standards

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Financing Options
1) The insurer may require
			 a premium charge or cost of insurance charge for the accelerated benefit. In
			 the case of group insurance, the additional cost may also be reflected in the
			 experience rating. This premium charge or cost of insurance charge shall be
			 based on subsections (a)(1)(A) and (B) below:
A) Either:
i) The current yield on 90-day treasury
			 bills; or
ii) The current maximum
			 statutory adjustable policy loan interest rate; and
Illinois Administrative Code › Title 50 - INSURANCE › Part 1407 - ACCELERATED LIFE BENEFIT/TERMINAL ILLNESS/QUALIFIED CONDITIONS › Section 1407.70 - Actuarial Disclosure and Reserves

Current through Register Vol. 48, No. 28, July 12, 2024
a) Actuarial Memorandum. Concurrently with
			 the accelerated benefit policy form filing required by this Part, each insurer
			 shall file with the Director an actuarial memorandum prepared by a qualified
			 actuary that describes the accelerated benefits, the risks, the expected costs
			 and the calculation of statutory reserves.
b) When benefits are provided through the
			 acceleration of benefits under group or individual policies or riders to such
			 policies, policy reserves shall be determined in accordance with Section 223 of
			 the Illinois Insurance Code [215
			 ILCS 5/223 ]. All valuation assumptions used in
			 constructing the reserves shall be determined as appropriate for statutory
			 valuation purposes by a qualified actuary. Reserves in the aggregate shall be
			 sufficient to cover:
1) Policies upon which
			 no claim has yet arisen; and
2)
			 Policies upon which an accelerated benefits claim has arisen.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose of
			 this Part is to provide:
1) Tables of select
			 mortality factors and procedures for their use;
2) Minimum standards for the valuation of
			 plans with nonlevel premiums or benefits;
3) Minimum standards for the valuation of
			 plans with secondary guarantees.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.20 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
This Part shall apply to all life insurance policies, with or
				without nonforfeiture values issued on or after January 1, 2000, subject to the
				following exceptions and conditions:
a) Exceptions
1) This Part does not apply to any individual
			 life insurance policy issued on or after January 1, 2000 if the policy is
			 issued in accordance with, and as a result of the exercise of, a reentry
			 provision contained in the original life insurance policy or any individual
			 life insurance policy of the same or greater face amount, issued before January
			 1, 2000 that guarantees the premium rates of the new policy. This Part also
			 does not apply to subsequent policies issued as a result of the exercise of
			 such a provision, or a derivation of the provision in the new policy.
2) This Part does not apply to any universal
			 life policy that meets all the following requirements with regard to all
			 secondary guarantee periods:
A) Secondary
			 guarantee period, if any, is 5 years or less;
B) Specified premium for the secondary
			 guarantee period is not less than the net level reserve premium for the
			 secondary guarantee period based on the 1980 CSO valuation tables as defined in
			 Section
			 1409.30
			 and the applicable valuation interest rate; and
C) The initial surrender charge is not less
			 than 100% of the first year annualized specified premium for the secondary
			 guarantee period.
3)
			 This Part does not apply to any variable life insurance policy that provides
			 for life insurance, the amount or duration of which varies according to the
			 investment experience of any separate account or accounts.
4) This Part does not apply to any variable
			 universal life insurance policy that provides for life insurance, the amount or
			 duration of which varies according to the investment experience of any separate
			 account or accounts.
5) This Part
			 does not apply to group life insurance certificates unless the certificates
			 provide for a stated or implied schedule of maximum gross premiums required in
			 order to continue coverage in force for a period in excess of one
			 year.
6) This Part does not apply
			 to any policy that is subject to the requirements of a principle-based
			 valuation as determined by Section 223(8)(d)(ii) of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.40 - General Calculation Requirements for Basic Reserves and Deficiency Reserves

Current through Register Vol. 48, No. 28, July 12, 2024
a) Basic
			 Reserves
1) At the election of the company
			 for any one or more specified plans of life insurance, the minimum mortality
			 standard for basic reserves may be calculated using the 1980 CSO valuation
			 tables with select mortality factors.
2) If select mortality factors are elected,
			 they may be:
A) The 10-year select mortality
			 factors incorporated into the 1980 amendments to the NAIC Standard Valuation
			 Law; or
B) The select mortality
			 factors found in Appendix A.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.50 - Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Premiums or Guaranteed Nonlevel Benefits (Other Than Universal Life Policies)

Current through Register Vol. 48, No. 28, July 12, 2024
a) Basic
			 Reserves.
Basic reserves shall be calculated as the greater of the
				segmented reserves and the unitary reserves. Both the segmented reserves and
				the unitary reserves for any policy must use the same valuation mortality table
				and selection factors. At the option of the insurer, in calculating segmented
				reserves and net premiums, either of the adjustments described in subsection
				(a)(1) or (2) below may be made:
1)
			 Treat the unitary reserve, if greater than zero, applicable at the end of each
			 segment as a pure endowment; and subtract the unitary reserve, if greater than
			 zero, applicable at the beginning of each segment from the present value of
			 guaranteed life insurance and endowment benefits for each segment.
2) Treat the guaranteed cash surrender value,
			 if greater than zero, applicable at the end of each segment as a pure
			 endowment; and subtract the guaranteed cash surrender value, if greater than
			 zero, applicable at the beginning of each segment from the present value of
			 guaranteed life insurance and endowment benefits for each segment.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.60 - Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period

Current through Register Vol. 48, No. 28, July 12, 2024
a) General.
1) Policies with a secondary guarantee
			 include, but are not limited to:
A) A policy
			 with a guarantee that the policy will remain in force at the original schedule
			 of benefits, subject only to the payment of specified premiums;
B) A policy in which the minimum premium at
			 any duration is less than the corresponding one year valuation premium,
			 calculated using the maximum valuation interest rate and the 1980 CSO valuation
			 tables with or without ten-year select mortality factors; or
C) A policy with any combination of (a)(1)(A)
			 and (B) above.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.70 - Use of 2001 CSO Mortality Table

Current through Register Vol. 48, No. 28, July 12, 2024
The 2001 CSO Mortality Tables found in 50 Ill. Adm. Code
				1412.Appendix A may be used for calculations under the requirements of this
				Part as authorized and described in 50 Ill. Adm. Code
				1412.50.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Section 1409.80 - Use of 2001 CSO Preferred Class Structure Mortality Table

Current through Register Vol. 48, No. 28, July 12, 2024
The 2001 CSO Preferred Class Structure Mortality Tables may be
				used for calculations under the requirements of this Part using the guidance in
				50 Ill. Adm. Code
				1412.50,
				but substituting the 2001 CSO Preferred Class Structure Mortality Table for use
				in determining minimum reserve liabilities as authorized and described in 50
				Ill. Adm. Code 1413.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS › Appendix A - Select Mortality Factors

Current through Register Vol. 48, No. 28, July 12, 2024
This Appendix contains six tables of select mortality factors
				which include:
1) male aggregate,
2) male nonsmoker,
3) male smoker,
4) female aggregate,
5) female nonsmoker, and
6) female smoker.
These tables apply to both age last birthday and age nearest
				birthday mortality tables.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.20 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
This Part shall apply to insurance producers who sell modified
				guaranteed annuity contracts and insurers who issue such contracts in this
				State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Adjusted Minimum Nonforfeiture Amount" means the minimum
				nonforfeiture amount as defined in Section 229.4 a of the Code, adjusted by the
				Market Value Adjustment.
"Appointed Actuary" means an appointed actuary as defined in
				Section 223(13) of the Code.
"Code" means the Illinois Insurance Code [ 215 ILCS 5 ].
"Director" means the Director of the Department of
				Insurance.
"Insurance Producer" means an individual licensed pursuant to
				Article XXXI of the Code [ 215 ILCS 5 /Art. XXXI] who solicits, negotiates,
				effects, procures, renews, continues or binds modified guaranteed annuity
				contracts in this State.
"Insurer" means any insurance company that has delivered or
				issued for delivery in this State a modified guaranteed annuity
				contract.
"Interest Credit" means all interest that is credited to the
				contract.
"Market Value Adjustment" or "MVA" means a formula specified in
				the contract that adjusts the cash value of the contract. It reflects changes
				in prevailing interest rates and the time remaining until the date on which the
				cash surrender value is available without adjustment.
"Minimum Nonforfeiture Amount" means the minimum nonforfeiture
				amount as defined in Section 229.4a of the Code.
"Modified Guaranteed Annuity" or "MGA" means a fixed annuity,
				or a fixed portion of a combination annuity, that is funded through the general
				account and provides for guaranteed values on specified dates or specified ages
				and with interim nonforfeiture values that are adjusted in accordance with an
				MVA. This term applies to contracts issued before January 1, 2017. The term
				"Modified Guaranteed Annuity" or "MGA" is to be substituted with "General
				Account Modified Guaranteed Annuity" or "GAMGA" throughout this Part for
				contracts issued on or after January 1, 2017. A GAMGA otherwise has the same
				definition as an MGA.
"Qualified Actuary" means a qualified actuary as defined in
				Section 223(13) of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.40 - Authority of Insurers

Current through Register Vol. 48, No. 28, July 12, 2024
The following requirements apply to all insurers who have
				authority to issue MGA contracts in this State.
a) Approval to do Business:
1) No insurer shall deliver or issue for
			 delivery any MGA contracts unless licensed to do life insurance or annuity
			 business in this State.
2) An
			 insurer shall submit to the Director a general description of the kinds of
			 annuities it intends to issue prior to the deliverance or issue of the
			 contracts within this State.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.50 - Filing of Contracts

Current through Register Vol. 48, No. 28, July 12, 2024
The filing requirements applicable to MGA contracts shall be
				made pursuant to Section 143 of the Code and 50 Ill. Adm. Code 916. Filings
				shall include a demonstration that the nonforfeiture provisions of the contract
				comply with Section 229.4 a of the Code and Section
				1410.60(b)
				of this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.60 - General Account Modified Guaranteed Annuity (GAMGA) Contract Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Mandatory Contract Benefit and Design Requirements
1) Any MGA contract delivered or issued for
			 delivery in this State shall contain a statement of the procedures to be
			 followed by the insurer in determining the dollar amount of nonforfeiture
			 benefits.
2) No MGA contract
			 calling for the payment of periodic stipulated payments shall be delivered or
			 issued for delivery in this State unless it contains the following provisions:
A) A provision that there shall be a grace
			 period of 30 days or one month following the premium due date during which the
			 contract shall remain in force and, within which any payment due to the
			 insurer, other than the first, may be made. The contract may include a
			 statement of the basis for determining the date as of which any payment
			 received during the grace period shall be applied to produce the values under
			 the contract.
B) A provision that,
			 at any time within one year from the date of default, the contract may be
			 reinstated upon payment to the insurer of any overdue payments required by
			 contract, and of all indebtedness to the insurer on the contract, including
			 interest. Reinstatement may not occur if the cash value has been paid. The
			 contract may include a statement of the basis for determining the date as of
			 which the amount to cover the overdue payments and indebtedness shall be
			 applied to produce the values under the contract.
3) The MVA formula, used in determining
			 nonforfeiture benefits, must be stated in the contract and must be applicable
			 for both upward and downward adjustments. When a contract is filed, it must be
			 accompanied by an actuarial certification by a qualified actuary indicating the
			 basis for the MVA formula and that the formula provides reasonable equity to
			 both the contractholder and the insurer.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.70 - Reserve Liabilities

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 reserve is the greater of (a)(1) or (a)(2) below:
1) the cash surrender value at the date of
			 valuation, excluding the effect of the MVA; or
2) the present value of the contract benefits
			 that are guaranteed, such present value assuming a "B" type contract as defined
			 in Section 223(6)(c)(i)(C)(5) of the Code [215
			 ILCS 5/223(6)(c)(i)(C)(5)
			 ].
Illinois Administrative Code › Title 50 - INSURANCE › Part 1410 - GENERAL ACCOUNT MODIFIED GUARANTEED ANNUITY (GAMGA) CONTRACTS › Section 1410.80 - Reports to Policyholders

Current through Register Vol. 48, No. 28, July 12, 2024
Insurers will annually provide their contractholders with a
				report showing both the account value and the cash surrender value. The report
				must indicate the amount of any expense charges used to determine the account
				value and that the account value is determined prior to any adjustment(s) for
				surrender charges or the MVA formula. It should also specify the surrender
				charge and MVA and any other charges used to determine the cash surrender
				value.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1411 - UNIVERSAL LIFE INSURANCE › Section 1411.10 - Purpose and Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to supplement the Department's
				existing regulations on life insurance policies with standards and requirements
				specifically applicable to all individual and group universal life insurance
				policies and group certificates except variable universal life policies and
				group certificates. It establishes minimum standards for reserve valuation and
				cash surrender values, as well as mandatory policy provisions, including a
				periodic policy status report to the policyowner or group
				certificateholder.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1411 - UNIVERSAL LIFE INSURANCE › Section 1411.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Cash Surrender Value means the net cash surrender value plus
				any amounts outstanding as policy loans.
Code means the Illinois Insurance Code [215 ILCS 5 ].
Director means the Director of the Illinois Department of
				Insurance.
Fixed Premium Universal Life Insurance Policy means a universal
				life insurance policy other than a flexible premium universal life insurance
				policy.
Flexible Premium Universal Life Insurance Policy means a
				universal life insurance policy that permits the policyowner or group
				certificateholder to vary, independently of each other, the amount or timing of
				one or more premium payments or the amount of insurance.
Net Cash Surrender Value means the maximum amount payable to
				the policyowner or group certificateholder upon surrender.
Policy Value means the amount to which separately identified
				interest credits and mortality, expense, or other charges are made under a
				universal life insurance policy.
Universal Life Insurance Policy means a group or individual
				life insurance policy where separately identified interest credits (other than
				in connection with dividend accumulations, premium deposit funds, or other
				supplementary accounts) and mortality and expense charges are made to the
				policy or group certificate. A universal life insurance policy may provide for
				other credits and charges, such as charges for the cost of benefits provided by
				rider.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1411 - UNIVERSAL LIFE INSURANCE › Section 1411.50 - Policy and Group Certificate Requirements and Disclosures

Current through Register Vol. 48, No. 28, July 12, 2024
a) Periodic Disclosure
The policy shall provide that the individual policyowner or
				group certificateholder will be sent, without charge, at least annually, a
				report that will serve to keep the policyowner or group certificateholder
				advised as to the status of the policy. The end of the current report period
				must be not more than 3 months previous to the date of the mailing of the
				report. Specific requirements of this report are detailed in Section
				1411.60 of this
				Part.
b) Current
			 Illustrations
The annual report shall provide notice that the individual
				policyowner or group certificateholder may request an illustration of current
				and future benefits and values, as required by 50 Ill. Adm. Code 1406, when the
				policy is illustrated.
c)
			 Policy Guarantees
The policy shall provide guarantees of minimum interest credits
				and maximum mortality and expense charges. All values and data shown in the
				policy or group certificate shall be based on guarantees. No figures based on
				nonguarantees shall be included in the policy or group
				certificate.
d) Calculation
			 of Cash Surrender Values
The individual policy or group certificate shall contain at
				least a general description of the calculation of cash surrender value
				including the following information:
1) The guaranteed maximum expense charges and
			 loads.
2) Any limitation on the
			 crediting of additional interest. Interest credits shall not remain conditional
			 for a period longer than 24 months.
3) The guaranteed minimum rate or rates of
			 interest.
4) The guaranteed maximum
			 mortality charges.
5) Any other
			 guaranteed charges.
6) Any
			 surrender or partial withdrawal charges.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1411 - UNIVERSAL LIFE INSURANCE › Section 1411.60 - Annual Report to Individual Policyowner or Group Certificateholder

Current through Register Vol. 48, No. 28, July 12, 2024
a) Requirements
The policy shall provide that the individual policyowner or
				group certificateholder will be sent, without charge, at least annually, a
				report that will serve to keep the policyowner or group certificateholder
				advised of the status of the policy. The end of the current report period shall
				be not more than 3 months previous to the date of the mailing of the
				report.
b) The report shall
			 include the following:
1) The beginning and
			 end of the current report period;
2) The policy value at the end of the
			 previous report period and at the end of the current report period;
3) The total amounts that have been credited
			 or debited to the policy value during the current report period, identifying
			 each by type (e.g., interest, mortality, expense and riders);
4) The current death benefit at the end of
			 the current report period on each life covered by the policy;
5) The net cash surrender value of the policy
			 or group certificate as of the end of the current report period;
6) The amount of outstanding loans, if any,
			 as of the end of the current report period;
7) For fixed premium policies:
If, assuming guaranteed interest, mortality and expense loads
				and continued scheduled premium payments, the individual policy's or group
				certificate's net cash surrender value is such that it would not maintain
				insurance in force until the end of the next reporting period, a notice to this
				effect shall be included in the report;
8) For flexible premium policies:
If, assuming guaranteed interest, mortality and expense loads,
				the individual policy's or group certificate's net cash surrender value will
				not maintain insurance in force until the end of the next reporting period
				unless further premium payments are made, a notice to this effect shall be
				included in the report.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1412 - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 1412.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to recognize, permit and prescribe
				the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table under
				the authority of Sections 223(3)(a)(i) and 229.2(4c)(h)(vi) of the Illinois
				Insurance Code and for use under 50 Ill. Adm. Code
				1409.40(a) and
				(b).
Illinois Administrative Code › Title 50 - INSURANCE › Part 1412 - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 1412.30 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
a) 2001 CSO
			 Mortality Table
1) At the election of the
			 company for any one or more specified plans of insurance and subject to the
			 conditions stated in this Part, the 2001 CSO Mortality Table may be used as the
			 minimum standard for policies issued on or after July 1, 2004 and before
			 January 1, 2017, to which Sections 223(3)(a)(i) and 229.2(4c)(h)(vi) of the
			 Code and 50 Ill. Adm. Code
			 1409.40(a) and
			 (b) are applicable. If the company elects to
			 use the 2001 CSO Mortality Table, it shall do so for both valuation and
			 nonforfeiture purposes.
2) Subject
			 to the conditions of this Part, the 2001 CSO Mortality Table shall be used in
			 determining minimum standards for policies issued on and after January 1, 2009
			 and before January 1, 2017, to which Sections 223(3)(a)(i) and 229.2(4c)(h)(vi)
			 of the Code and 50 Ill. Adm. Code
			 1409.40(a) and
			 (b) are applicable.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1412 - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 1412.40 - Conditions

Current through Register Vol. 48, No. 28, July 12, 2024
a) For each plan of
			 insurance with separate rates for smokers and nonsmokers, an insurer may use:
1) Composite mortality tables to determine
			 minimum reserve liabilities and minimum cash surrender values and amounts of
			 paid-up nonforfeiture benefits;
2)
			 Smoker and nonsmoker mortality tables to determine the valuation net premiums
			 and additional minimum reserves, if any, required by Section 223(3)(f) of the
			 Code and use composite mortality tables to determine the basic minimum
			 reserves, minimum cash surrender values and amounts of paid-up nonforfeiture
			 benefits; or
3) Smoker and
			 nonsmoker mortality to determine minimum reserve liabilities and minimum cash
			 surrender values and amounts of paid-up nonforfeiture benefits.
Illinois Administrative Code › Title 50 - INSURANCE › Part 1412 - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS › Section 1412.50 - Applicability of the 2001 CSO Mortality Table to 50 Ill. Adm. Code 1409

Current through Register Vol. 48, No. 28, July 12, 2024
a) The 2001 CSO
			 Mortality Table may be applied to 50 Ill. Adm. Code 1409 in the following
			 manner, subject to the transition dates for use found in Section
			 1412.30:
1) 50 Ill. Adm. Code
			 1409.20(a)(2)(B):
			 The net level reserve premium is based on the ultimate mortality rates in the
			 2001 CSO Mortality Table.
2) 50
			 Ill. Adm. Code
			 1409.30:
			 All calculations are made using the 2001 CSO Mortality Rate and, if elected,
			 the optional minimum mortality standard for deficiency reserves stipulated in
			 subsection (a)(4). The value of "qx+k+t-1" is the
			 valuation mortality rate for deficiency reserves in policy year k+t, but using
			 the unmodified select mortality rates if modified select mortality rates are
			 used in the computation of deficiency reserves.
3) 50 Ill. Adm. Code
			 1409.40(a):
			 The 2001 CSO Mortality Table is the minimum standard for basic
			 reserves.
4) 50 Ill. Adm. Code
			 1409.40(b):
			 The 2001 CSO Mortality Table is the minimum standard for deficiency reserves.
			 If select mortality rates are used, they may be multiplied by X percent for
			 durations in the first segment, subject to the conditions specified in 50 Ill.
			 Adm. Code
			 1409.40(b)(3).
			 In demonstrating compliance with those conditions, the demonstrations may not
			 combine the results of tests that utilize the 1980 CSO Mortality Table with
			 those tests that utilize the 2001 CSO Mortality Table, unless the combination
			 is explicitly required by regulation or necessary to be in compliance with
			 relevant Actuarial Standards of Practice.
5) 50 Ill. Adm. Code
			 1409.50(c):
			 The valuation mortality table used in determining the tabular cost of insurance
			 shall be the ultimate mortality rates in the 2001 CSO Mortality
			 Table.
6) 50 Ill. Adm. Code
			 1409.50(e)(4):
			 The calculations specified in 50 Ill. Adm. Code
			 1409.50(e)
			 shall use the ultimate mortality rates in the 2001 CSO Mortality
			 Table.
7) 50 Ill. Adm. Code
			 1409.50(f)(4):
			 The calculations specified in 50 Ill. Adm. Code
			 1409.50(f)
			 shall use the ultimate mortality rates in the 2001 CSO Mortality
			 Table.
8) 50 Ill. Adm. Code
			 1409.50(g)(2):
			 The calculations specified in 50 Ill. Adm. Code
			 1409.50(g)
			 shall use the ultimate mortality rates in the 2001 CSO Mortality
			 Table.
9) 50 Ill. Adm. Code
			 1409.60(a)(1)(B):
			 The one-year valuation premium shall be calculated using the ultimate mortality
			 rates in the 2001 CSO Mortality Table.