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California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.6 - Financial Reports and Projections Subsequent to Qualification

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) For the first
				  five (5) years after qualification, the insurer shall file quarterly financial
				  reports covering its investment annuity business separate and apart from all
				  other business of the insurer, on a form provided by the Commissioner. Such
				  quarterly reports must be related to the previously filed projections. The five
				  (5) year projections initially submitted with the qualification material must
				  be revised and resubmitted annually for the first five (5) years.
(b) The first quarterly report after
				  qualification shall be due following the first full quarter after the original
				  qualification to transact an investment annuity business.
(c) After the insurer has been qualified to
				  transact such business for five (5) years, it will be required to file its
				  financial report of investment annuity business on an annual basis, unless the
				  Insurance Commissioner requests the insurer to file more frequently, together
				  with its projections for the next year and verification of the projections for
				  the previous years.
(d) The
				  Department's review of the verification may result in additional capital and
				  surplus requirements, restriction on writings or both.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.7 - Filing of Sales Materials

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  The word "advertisement," as used in this article, means any advertisement
				  material, illustration, descriptive literature or other sales material of any
				  kind relating to investment annuities. An insurer authorized to transact
				  investment annuity business in this state is responsible for all advertisements
				  of its product and shall not use in this state any advertisement which is
				  false, misleading, deceptive or inaccurate. All investment annuity
				  advertisements shall be filed with the commissioner not less than thirty (30)
				  days prior to use. Revised versions of such filed advertisements shall be filed
				  with the commissioner not less than thirty (30) days prior to use. A filed
				  advertisement may be used if either:
(1)
				  thirty (30) days expire without notice from the commissioner that the
				  advertisement is objectionable, or
(2) the commissioner prior to that time
				  indicates the advertisement is unobjectionable. The commissioner shall require
				  an insurer to cease the use of any advertisement if any such advertisement is
				  false, misleading, deceptive or inaccurate.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.11 - A Statement Shall be Furnished Applicants for Investment Annuities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A statement
				  containing the following information shall be furnished to an applicant upon
				  request and prior to the execution of an application or group enrollment form.
(1) A summary explanation in non-technical
				  terms of the principal features of the policy and of the manner in which any
				  benefits will vary based upon premiums payable from the segregated custodian
				  account which will reflect the investment experience of the assets in the
				  account.
(2) A listing of the kinds
				  of assets (investments) which are acceptable investments within a custodian
				  account.
(3) A specific and
				  complete schedule of all premiums and a specific and complete current custodian
				  fee schedule which clearly discloses the usual and customary charges imposed by
				  the custodian, including the charges for each type of investment transaction.
				  Such custodian fee schedule shall specify that the custodian shall not increase
				  the custodian account charges more than once each twelve months. A disclosure
				  of the amount of the premiums payable as commissions for the sale of the
				  investment annuity. Such disclosures shall comply with the requirements of
				  subsection (d) of Section
				  2522.7 of this Article.
(4) A statement of the federal income tax
				  liabilities applicable to the policy, and an explanation of the state premium
				  tax.
(5) A prominent statement with
				  respect to the fact that the custodian cannot return any assets of the account
				  to the policyholder, policyowner or annuitant.
(6) Subject to the approval of the
				  Commissioner, the insurer may include such other relevant information as the
				  insurer deems appropriate.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.12 - Custodian Reports

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any
				  insurer delivering or issuing for delivery in this State any investment annuity
				  policy shall require the custodian to provide the policyowner, if the
				  policyowner has the investment discretion as to the account, and to the
				  annuitant at his or her last known address a report containing, at a minimum,
				  the following information:
(1) Within thirty
				  (30) days after the end of each calendar year, the custodian shall furnish the
				  policyowner, if the policyowner has the investment discretion as to the
				  account, and to the annuitant, if other than the policyowner, and the insurer
				  with a statement of:
(A) Premiums, taxes,
				  charges, assessments, if any, and transactions within the account since the
				  last such statement, and
(B) A list
				  in detail of all of the dividends, interest and other income and other assets
				  in the account, the market value of each asset of the annuitant, and the
				  aggregate fair market value of all of the assets in the annuitant's account,
				  all as of the end of such calendar year.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.13 - Premium Tax

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No charge shall be made against the segregated custodian
					 account for a premium tax until such a premium tax is actually due and payable.
					 Section 28 of Article XIII of the
					 Constitution is applicable to investment annuities.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.14 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The use in this Article of any definition or statement
					 which directly or indirectly defines a word or phrase in the provisions of
					 policy forms and the custodian agreement does not prohibit the insurer from
					 using other words or phrases with the same generic source or meaning to state
					 or define the same subject matter in the provisions of policy forms and the
					 custodian agreement if the words or phrases are not misleading or are defined
					 to clearly state the meaning of such words or phrases.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.15 - Agent Licensing Procedure

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The sale of investment annuity policies by a life insurance
					 agent does not require licensing as a Variable Contract
					 Agent.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.1 - Investment Annuities › Section 2522.16 - Severability Provision

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If any section or portion of a section of this Article, or
					 the applicability thereof to any person or circumstance is held invalid by a
					 court of competent jurisdiction, the remainder of this Article, or the
					 applicability of such provisions to other persons or circumstances, shall not
					 be affected thereby.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.2 - Annuity Nonforfeiture › Section 2523 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The purpose of this Article is to implement, interpret and
					 make specific the provisions of Section
					 10168.25 of
					 the Insurance Code, which governs minimum nonforfeiture values for annuities
					 subject to that section.
1. New
					 article 10.2 (sections
					 2523-2523.6) and section filed
					 12-19-2012; operative 12-19-2012 pursuant to Government Code section
					 11343.4
					 (Register 2012, No. 51).
Note: Authority cited: Sections
						10168.25(f)
						and
						10168.92,
						Insurance Code. Reference: Section
						10168.25,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.2 - Annuity Nonforfeiture › Section 2523.1 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Basis" carries
				  two meanings.
(1) When used in the context of
				  an initial or redetermination method, "basis" means the specified period over
				  which an average is computed that produces the value of the five-year Constant
				  Maturity Treasury ("CMT") Rate. The "specified period" could be as short as a
				  single day. The same basis shall apply to all equity-indexed benefits and the
				  non equity-indexed benefit, if any.
(A) The
				  basis may also use a specified period that is determined by the level of change
				  in the CMT rate, or any other date dependent methodology adopted by the
				  National Association of Insurance Commissioners ("NAIC") and approved by the
				  commissioner. A specifically excluded method is one that defines the
				  nonforfeiture rate as the lowest rate in a specified time period. A method
				  based upon changes in CMT levels must move up or down in an identical manner
				  with changes in interest rates, subject to statutory minimums and
				  maximums.
(B) If the basis uses a
				  specified period determined by the level of change in the CMT rate:
1. The nonforfeiture rate applicable at the
				  time this subsection is first utilized for a contract form shall be determined
				  by a method using a specified period or another approved date dependent
				  methodology.
2. A symmetrical range
				  shall be defined that will determine when the rate shall be updated. The
				  maximum allowable range shall be plus or minus fifty (50) basis
				  points.
3. At the beginning of each
				  modal period (e.g., monthly, quarterly, etc.), a potential nonforfeiture rate
				  shall be calculated using the method in paragraph 1., above, without
				  incorporating any caps or floors. The "modal period" is the period the company
				  specifies during which the current nonforfeiture rate will remain
				  fixed.
4. If the difference between
				  the potential nonforfeiture rate and the current initial nonforfeiture rate is
				  less than or equal to the range, the current nonforfeiture rate shall not be
				  updated.
5. If the difference
				  between the potential nonforfeiture rate and the current nonforfeiture rate is
				  more than the range, the current nonforfeiture rate shall be updated to be
				  equal to the potential nonforfeiture rate adjusted for rounding and any caps or
				  floors.
6. See the examples of
				  indexing methods dependent upon changes in CMT levels in Section
				  2523.6, Appendix
				  A.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.2 - Annuity Nonforfeiture › Section 2523.2 - Initial Method

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  initial method shall be filed with the commissioner in accordance with
				  California filing and approval requirements.
(b) Changes to the initial method are allowed
				  once per calendar year. Any changes to the initial method shall be filed with
				  the commissioner in accordance with California filing and approval
				  requirements. A change in initial method would be applicable only to new
				  contracts (or new certificates) issued subsequent to the effective date of the
				  change in method.
(c) The initial
				  method is not required to be disclosed in the contract form.
(d) The initial nonforfeiture rate is not
				  required to be disclosed in the contract form, unless redetermination is
				  used.
(e) The minimum nonforfeiture
				  parameters (e.g., load, interest rate, expenses) need not be disclosed in the
				  contract unless they are utilized in the calculation of the guaranteed minimum
				  value of the contract as required under Subsection
				  10168.1(c)
				  of the Insurance Code.
1. New
					 section filed 12-19-2012; operative 12-19-2012 pursuant to Government Code
					 section
					 11343.4
					 (Register 2012, No. 51).
Note: Authority cited: Sections
						10168.25(f)
						and
						10168.92,
						Insurance Code. Reference: Section
						10168.25,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.2 - Annuity Nonforfeiture › Section 2523.3 - Redetermination Method

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) If
				  redetermination is used, the method shall be disclosed in the contract form (or
				  certificate).
(b) Changes in the
				  redetermination method for future issues (or certificates) are allowed at any
				  time subject to California filing and approval requirements.
1. New
					 section filed 12-19-2012; operative 12-19-2012 pursuant to Government Code
					 section
					 11343.4
					 (Register 2012, No. 51).
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 10.2 - Annuity Nonforfeiture › Section 2523.5 - Equity-Indexed Benefits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) If
				  a company chooses to take the additional reduction for an equity-indexed
				  benefit as provided under Subsection
				  10168.25(e)
				  of the Insurance Code, the company shall prepare a demonstration showing
				  compliance with the requirements in Subsection
				  10168.25(e).
(b) To demonstrate compliance, utilize the
				  following steps:
(1) Calculate the annualized
				  option cost for the equity-indexed benefit in the form of basis points for the
				  entire index term as of the beginning of the index term.
(A) Use the equity-indexed benefit's
				  guaranteed product features, such as the guaranteed participation rate,
				  guaranteed caps, etc.
(B) For the
				  option cost, use a basis representative of the point in time at the beginning
				  of the current index term. The company cannot change this basis during the
				  index term.
(C) Make no adjustments
				  for persistency, death, utilization, etc.
(D) The method and parameters for the option
				  cost shall be calibrated to capital markets based option
				  pricing.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2525 - Authority

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
These regulations are promulgated pursuant to the authority
					 granted the Insurance Commissioner by the provisions of Section
					 10506(h)
					 of the Insurance Code.
1. New
					 Article 11 (Sections
					 2525,
					 2525.1,
					 2525.2,
					 2526,
					 2526.1-2526.3,
					 2527-2530,
					 2530.1,
					 2531-2533,
					 2533.1) filed 4-4-72 as an
					 emergency; effective upon filing (Register 72, No. 15).
2.
					 Certificate of Compliance filed 7-17-72 (Register 72, No
					 30).
Note: Authority cited: Section
						10506,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2525.1 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The purposes of these regulations are to set forth rules
					 and procedural requirements which the Insurance Commissioner deems necessary to
					 implement the provisions of Section
					 10506 of
					 the Insurance Code concerning the issuance and delivery of variable contracts
					 in California, the payment of benefits thereunder, the manner in which the
					 separate accounts required thereunder shall be established, maintained and
					 administered and the administration of Article 16 (commencing with Section
					 1758.1), Chapter 5, Part 2,
					 Division 1, of the Insurance Code relating to variable contract
					 agents.
1. Amendment
					 filed 7-19-72; effective thirtieth day thereafter (Register 72, No.
					 30).
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2525.2 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The term
				  "variable contract," when used in these regulations shall mean any policy or
				  contract which provides for life insurance or annuity benefits which vary
				  according to the investment experience of any separate account or accounts
				  maintained by the insurer as to such policy or contract, in accordance with
				  Section
				  10506 of
				  the Insurance Code. A policy or contract providing fixed annuity benefits
				  during the annuity payment period shall be deemed to be a "variable contract"
				  if the amount of such benefits depends, prior to the commencement date of the
				  annuity payments, upon the investment experience of any separate account or
				  accounts maintained for such policy or contract.
(b) "Agent," when used in these regulations,
				  shall mean any person licensed as a life and disability or life only agent
				  under the provisions of Chapter 5 (commencing with Section
				  1621), Part 2, Division 1, of the
				  Insurance Code, more particularly defined in Section
				  1626 thereof.
(c) "Variable contract agent," when used in
				  these regulations, shall mean an agent licensed to transact, or required to be
				  licensed to transact, variable life insurance or variable annuity contracts by
				  Article 16 (commencing with Section
				  1758.1), Chapter 5, Part 2,
				  Division 1, of the Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2526 - Obtaining Certificate Permitting Transaction of Variable Contract Business

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No insurer shall deliver or issue for delivery in this
					 State any variable contract until it has received in writing from the Insurance
					 Commissioner a certification that he is satisfied that such insurer meets all
					 the standards for transacting such business required by Section
					 10506. Such certification may be
					 obtained by filing an application with the Insurance Commissioner together with
					 supporting documents and paying the minimum $100 filing fee therefor required
					 by Section
					 10506.1; and in case of a domestic
					 insurer, agreeing to pay such additional amount as may be assessed by the
					 Insurance Commissioner pursuant to said Section
					 10506.1. Such application shall be
					 verified by an executive officer of the insurer.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2526.1 - Application of Domestic Insurers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The application of a domestic insurer to write any variable
					 contract shall include the following:
(a) A copy of the resolution of its board of
				  directors, certified by the secretary or equivalent officer under corporate
				  seal to be a full and true copy thereof, authorizing the establishing of one or
				  more separate accounts for the purposes authorized by Section
				  10506.
(b) A copy of each written agreement in
				  accordance with which each such separate account is to be established,
				  maintained and administered, including for informational purposes a copy of
				  each variable contract proposed to be delivered or issued for delivery in
				  California.
(c) A statement of the
				  additional amount, if any, of the insurer's assets, not otherwise received from
				  variable contract holders for deposit in such a separate account, which have
				  been allocated to a separate account pursuant to the authority of Section
				  10506(b). No more
				  than 1% of its admitted assets, or 5% of the excess of its admitted assets over
				  its liabilities and required reserves, both as of the preceding December 31,
				  whichever is the smaller, may be so allocated.
(d) A statement of the history, organization,
				  and ownership and control of the insurer. Any changes in organization,
				  ownership and control which are contemplated shall also be set forth. Reference
				  to past official examination reports, whether by California or other insurance
				  regulatory authority, if appropriately brought up to date, is acceptable.
				  Similarly, reference to other records bearing upon such matters, which have
				  become part of the Commissioner's official files, are acceptable.
(e) A brief balance sheet statement of
				  assets, liabilities, capital and surplus, as shown by its last filed Annual
				  Statement. The Annual Statement filed will be relied upon for
				  details.
(f) A complete statement
				  of the plan and methods, including the marketing methods for the transaction of
				  the variable contract and related business, which shall show:
(1) The status of the insurer of each of the
				  separate accounts with the Federal Securities and Exchange Commission,
				  including
(A) Any exemption granted under
				  Section 3(c) (11) of the
				  Investment Company Act of 1940 and Section
				  3(a) (2) of the
				  Securities Act of 1933;
(B) The
				  current prospectus and registration statement required by the Securities Act of
				  1933.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2526.2 - Application of Foreign Insurer

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The application of a foreign insurer, including a Canadian
					 insurer, shall include all of the matters required of a domestic insurer,
					 except those specified in Paragraph (a) of Section
					 2526.1 hereof. The Commissioner
					 shall give due regard to the regulatory activities of the applicant's
					 domiciliary state in passing upon the qualifications of such foreign insurer to
					 do a variable contract business in California. If the Commissioner requires, a
					 foreign insurer shall furnish a copy of the statutes and regulations of its
					 domiciliary state under which it is authorized to transact a variable contract
					 business and which regulate such transaction.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2526.3 - Certificate of Qualification Required

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If the Commissioner, after review of the application for
					 certification of qualification to engage in the variable contract business, is
					 satisfied that the insurer meets the statutory requirements of Section
					 10506 and its proposed operations
					 will not be such as to be hazardous to the public or its policyholders in this
					 State, he shall issue his certification of such conclusion as provided in
					 Section 2526 hereof.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2527 - Separate Account or Accounts: Non-Variable Contracts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A domestic insurer may file under Section
					 10506 of
					 the Insurance Code resolutions and agreements for any separate account or
					 accounts maintained for policies and contracts which provide only fixed dollar
					 annuities. These regulations being designed primarily for variable policies or
					 contracts, are applicable to such a fixed dollar separate account only insofar
					 as these regulations are relevant to that type of operation. The required
					 approval by the Commissioner can be granted when filings are made in compliance
					 with the basic requirements of subsections (a), (b), (c), (d), (e), (g) and the
					 first sentence of (h) of Section
					 10506 of
					 the Insurance Code to the extent such requirements are relevant to any such
					 fixed dollar separate account.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2528 - Separate Account or Accounts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A domestic insurer issuing variable contracts shall
					 establish one or more separate accounts pursuant to Section
					 10506 of
					 the Insurance Code, subject to the following provisions:
(a) Except as may be provided with respect to
				  reserves for guaranteed benefits and funds referred to in Paragraph (b), (i)
				  amounts allocated to any separate account and accumulations thereon may be
				  invested and reinvested without regard to any requirements or limitations
				  prescribed by the laws of this State governing the investments of life
				  insurance companies and (ii) the investments in such separate account or
				  accounts shall not be taken into account in applying the investment limitations
				  otherwise applicable to the investments of the company.
(b) Reserves for
(i) benefits guaranteed as to dollar amount
				  and duration and
(ii) funds
				  guaranteed as to principal amount or stated rate of interest may be maintained
				  in a separate account if a portion of the assets of such separate account at
				  least equal to such reserve liability is invested in accordance with the laws
				  and regulations of this State governing the investments of life insurance
				  companies. Such portion of the assets also shall not be taken into account in
				  applying the investment limitations otherwise applicable to the investments of
				  the company. If a variable contract includes incidental minimum guarantees as
				  referred to in Section
				  2530(d) (3), this
				  paragraph shall apply only to the reserve for any excess of such minimum
				  guarantees over the reserves for the benefits that would be payable under the
				  contract if there were no such minimum guarantees.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2529 - Filing and Approval of Policy Forms

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
All variable contract policy forms (The term "policy forms"
					 as used in this Section means any individual policy delivered or issued for
					 delivery in this State and any document attached to and made a part of such
					 policy, and any group policy delivered or issued for delivery in this State and
					 any document attached to and made a part of such group policy and any group
					 certificate delivered pursuant to the provisions of such group policy.),
					 including contracts providing fixed dollar benefits as may be included in the
					 operation of any separate account, shall be submitted to the Commissioner prior
					 to delivery or issuance for delivery in this State, and no such form shall be
					 delivered or issued for delivery in this State until the use of such form has
					 been approved in writing by the Commissioner. The fees for such approval shall
					 be the fees set forth in Section
					 2202(a) (10),
					 California Administrative Code, Title 10, Chapter 5, Subchapter 2. The
					 provisions of Section
					 12957 of
					 the Insurance Code shall be applicable to variable contract
					 forms.
1. Amendment
					 filed 7-19-72; effective thirtieth day thereafter (Register 72, No.
					 30).
2. Amendment filed 10-4-79; designated effective 1-2-80
					 (Register 79, No. 40)
Note: Authority cited: Sections
						10506(h),
						12973.9,
						California Insurance Code. Reference: Section
						10506,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2530.1 - Disclosure Requirements for Variable Life Contracts

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following information shall be furnished to an
					 applicant for a contract of variable life insurance prior to execution of the
					 application:
(a) A summary description
				  of the insurance company and its principal activities.
(b) A summary explanation in non-technical
				  terms of the principal variable features of the contract and of the manner in
				  which any variable benefits reflect the investment experience of a separate
				  account.
(c) A brief description of
				  the investment policy for the separate account with respect to such
				  contract.
(d) A list of investments
				  in the separate account as of a date not earlier than the end of the last year
				  for which an annual statement has been filed with the Commissioner of the state
				  of domicile.
(e) Summary financial
				  statements of the insurance company and such separate account based upon the
				  last annual statement filed with such Commissioner, except that for a period of
				  four months after the filing of any annual statement the summary required
				  hereby may be based upon the annual statement, immediately preceding such last
				  annual statement, filed with such Commissioner.
The insurer may include such additional information as it
					 deems appropriate.
A copy of the statement containing the foregoing
					 information shall be filed with such Commissioner prior to any use thereof and
					 shall be subject to disapproval if found to be misleading or
					 inaccurate.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2531 - Required Reports

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any
				  insurer issuing individual variable contracts shall mail to the contractholder
				  at least once in each contract year after the first, at his last address known
				  to the insurer, a statement or statements reporting the investments held in the
				  separate account. The insurer shall submit annually to the Insurance
				  Commissioner a statement of the business of its separate account or accounts in
				  such form as may be prescribed by the National Association of Insurance
				  Commissioners.
(b) Any insurer
				  issuing individual variable contracts shall mail to the contractholder at least
				  once in each contract year after the first, at his last address known to the
				  insurer, a statement reporting as of a date not more than four months previous
				  to the date of mailing:
(1) in the case of an
				  annuity contract under which payments have not yet commenced, (i) the number of
				  accumulation units credited to such contract and the dollar value of a unit, or
				  (ii) the value of the contractholder's account; and
(2) in the case of a life insurance policy,
				  the dollar amount of the death benefit.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2532 - Foreign Insurers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If the law or regulation in the place of domicile of a
					 foreign insurer or the state of entry or a Canadian insurer provides a degree
					 of protection to the policyholders and the public which is substantially equal
					 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.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2533 - Examination of Agents and Other Persons

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except as permitted by the next Section
				  hereof and Article 16 (commencing with Section
				  1758.1), Chapter 5, Part 2,
				  Division 1, of the Insurance Code, no person may act as an agent for a life
				  insurer in the transaction of variable contracts unless and until he has
				  received from the Commissioner a license as a Variable Contract Agent pursuant
				  to said Article 16.
(b) A person
				  otherwise properly licensed as a life agent may, without qualifying as a
				  variable contract agent, transact for a life insurer such variable contracts as
				  are exempt from filing under the Securities Act of 1933 and the Investment
				  Company Act of 1940.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11 - Separate Account or Accounts-Variable Contracts › Section 2533.1 - Agent Licensing Procedures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  A person may obtain a license as a variable contract agent by:
(1) filing a completed application upon the
				  form prescribed by the Commissioner,
(2) paying the statutory fees with such
				  application,
(3) taking and passing
				  the qualifying examination prescribed by the Commissioner, and
(4) submitting written evidence to the
				  Commissioner that he is registered to sell securities in accordance with the
				  rules of the United States Securities and Exchange Commission or the National
				  Association of Securities Dealers, Inc.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534 - Authority

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following regulation applicable to variable life
					 insurance policies is promulgated under the authority of Section
					 10506(h),
					 of the Insurance Code of California, and repeals Ruling No. 177-A to the extent
					 that Ruling No. 177-A was applicable to variable life
					 insurance.
1. New
					 Article 11.1 (Sections
					 2534,
					 2534.1 through
					 2534.10) filed 12-20-73 as an
					 emergency; effective upon filing (Register 73, No. 51).
2. New
					 Article 11.1 (Sections
					 2534,
					 2534.1 through
					 2534.10) filed 4-19-74 as an
					 emergency; effective upon filing. Certificate of Compliance included (Register
					 74, No. 16).
Note: Authority cited: Section
						10506,
						Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.2 - Qualification of Insurer to Issue Variable Life Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following requirements are applicable to all insurers
					 either seeking authority to issue variable life insurance in this State or
					 which have authority to issue variable life insurance in this State.
(a) Licensing and Approval to Do Business in
				  This State. An insurer shall not deliver or issue for delivery in this State
				  any variable life insurance policy unless:
(1)
				  The insurer is licensed or organized to do a life insurance business in this
				  State;
(2) The state of domicile of
				  such insurer requires that permissible investments be substantially the same as
				  provided in Section
				  2534.5(c) and
				  that changes in the investment policy of the variable life insurance separate
				  account be regulated in a manner substantially similar to that required under
				  Section 2534.5 for such separate accounts
				  operated by insurers domiciled in this State, and
(3) The insurer has obtained the written
				  approval of the Commissioner for the issuance of variable life insurance
				  policies in this State. The Commissioner shall grant such written approval only
				  after he has found that:
(A) The plan of
				  operation for the issuance of variable life insurance policies is not
				  unsound;
(B) The general character,
				  reputation and experience of the management and those persons or firms proposed
				  to supply consulting, investment, administrative or custodial services to the
				  insurer are such as to reasonably assure competent operation of the variable
				  life insurance business of the insurer in this State, and
(C) The present and foreseeable future
				  financial condition of the insurer and its method of operation in connection
				  with the issuance of such policies is not likely to render its operation
				  hazardous to the public or its policyholders in this State. The Commissioner
				  shall consider, among other things:
1. The
				  history of operation and financial condition of the insurer;
2. The qualifications, fitness, character,
				  responsibility, reputation and experience of the officers and directors and
				  other management of the insurer and those persons or firms proposed to supply
				  consulting, investment, administrative, or custodial services to the
				  insurer;
3. The applicable law and
				  regulations under which the insurer is authorized in its state of domicile to
				  issue variable life insurance policies. The state of entry of an alien insurer
				  shall be deemed its state of domicile for this purpose, and
4. If the insurer is a subsidiary of, or is
				  affiliated by common management or ownership with another company, its
				  relationship to such other company and the degree to which the requesting
				  insurer, as well as the other company, meet these
				  standards.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.3 - Insurance Policy Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Policy Qualification. The Commissioner shall not approve
					 any variable life insurance form filed pursuant to this regulation unless it
					 conforms to the requirements of this Section.
(a) Filing of Variable Life Insurance
				  Policies. All variable life insurance policies, riders, endorsements,
				  applications and other related documents which are to be attached to and made a
				  part of the policy shall be filed with the Commissioner and approved by him in
				  writing prior to delivery or issuance for delivery in this State.
(1) The procedures and requirements for such
				  filing and approval shall be, to the extent appropriate and not inconsistent
				  with this regulation, the same as those otherwise applicable to other life
				  insurance policies.
(2) The
				  Commissioner may approve variable life insurance policies and related forms
				  which provisions the Commissioner deems to be not less than favorable to the
				  policyholder and the beneficiary than those required by this
				  regulation.
(3) The requirements of
				  subsections (b)(1), (b)(4), and (c)(16) of this Section shall not apply to
				  variable life insurance policies and related forms issued in connection with
				  corporate pension and profit sharing plans and retirement income H.R. 10
				  pension plans which are exempt pursuant to Section
				  3(c)(11) of the
				  Investment Company Act of 1940 and where applicable other provisions of the
				  Federal securities laws because of their tax qualified
				  status.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.6 - Information Furnished to Applicants

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An insurer delivering or issuing for delivery in this State
					 any variable life insurance policies shall deliver to the applicant for the
					 policy, and obtain a written acknowledgement 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 by the delivery to the applicant of a prospectus included in a
					 registration statement which satisfies the requirements of the Securities Act
					 of 1933 and which was declared effective by the Securities and Exchange
					 Commission to the extent that the prospectus contains the information required
					 by this Section.
(a) A summary
				  explanation, in non-technical terms, of the principal features of the policy,
				  including a description of the manner in which the variable benefits will
				  reflect the investment experience of the separate account and the factors which
				  affect such variation;
(b) A
				  statement of the investment policy of the separate account, including:
(1) A description of the investment objective
				  and orientation intended for the separate account and the principal types of
				  investments intended to be made, and
(2) Any restriction or limitations on the
				  manner in which the operations of the separate account are intended to be
				  conducted;
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.7 - Applications

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The application for a variable life insurance policy shall
					 contain:
(a) A prominent statement
				  that the death benefit may be variable or fixed under specified
				  conditions;
(b) A prominent
				  statement that cash values may increase or decrease in accordance with the
				  experience of the separate account (subject to any specified minimum
				  guarantees), and
(c) Questions
				  designed to elicit information which enables the insurer to determine the
				  suitability of variable life insurance for the applicant.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.9 - Qualification of Agents for the Sale of Variable Life Insurance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Qualification
				  to Sell Variable Life Insurance.
(1) No
				  person may sell or offer for sale in this State any variable life insurance
				  policy unless such person is an agent and has filed with the Commissioner, in a
				  form satisfactory to the Commissioner, evidence that such person holds any
				  license or authorization which may be required for the solicitation or sale of
				  variable life insurance by any federal or state securities law.
(2) Any examination administered by the
				  Department for the purpose of determining the eligibility of any person for
				  licensing as an agent shall, after the effective date of this regulation,
				  include such questions concerning the history, purpose, regulation, and sale of
				  variable life insurance as the Commissioner deems
				  appropriate.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.10 - Separability Provisions

Current through Register 2024 Notice Reg. No. 28, July 12, 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.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.2 - Separate Account or Accounts-Modified Guaranteed Annuities › Section 2534.20 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The purpose of this article is to set forth rules and
					 procedural requirements which are necessary to implement the provisions of
					 California Insurance Code Section
					 10506
					 concerning the issuance and delivery of modified guaranteed annuity contracts
					 in California, the payment of benefits thereunder, the manner in which the
					 separate accounts required thereunder shall be established, maintained and
					 administered and the administration of Article 16 (commencing with Section
					 1758.1), Chapter 5, Part 2,
					 Division 1, of the Insurance Code relating to modified guaranteed annuity
					 agents.
1. New
					 section filed 2-6-92; operative 3-9-92 (Register 92, No. 13).
2.
					 Editorial correction adding inadvertently omitted Article heading (Register 95,
					 No. 13).
Note: Authority cited: Sections
						10506(h)
						and
						10506.3(a),
						Insurance Code. Reference: Sections
						10506(h),
						10506.3(a) and
						1758.1 Insurance
						Code.