Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-32 - VARIABLE LIFE INSURANCE › Rule 120-2-32-.04 - Qualification of Insurer to Issue Variable Life Insurance

Current through Rules and Regulations filed through June 27, 2024
The following requirements are applicable to all insurers
				  either seeking authority to issue variable life insurance in this State or
				  having authority to issue variable life insurance in this State:
(1) 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:
(a)
				the insurer is licensed or organized to transact the business of life insurance
				in this State;
(b) 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:
1. the plan of operation for the issuance of
				variable life insurance policies is not unsound;
2. the insurer has the administrative
				capability in terms of executive qualifications and staff qualifications as
				well as the computer capability to comply with the requirements of this
				Regulation;
3. 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
4. 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 operation
				hazardous to the public or its policyholders in this State.
The Commissioner shall consider, among other things:
(i) the history of operation and financial
				condition of the insurer;
(ii) 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.
(iii) 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
(iv) 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.
5. the company has submitted
				either as a part of its application for variable life authority (or within
				ninety (90) days after the effective date of this Regulation for those
				companies presently authorized for variable life insurance in this State) a
				detailed outline of the training course agents will receive with respect to
				variable life insurance. This preexamination course should meet the following
				requirements:
(i) candidates for variable life
				agents' licenses must hold a current life agents' license and be a N.A.S.D.
				Registered Representative.
(ii) the
				preexamination course must contain a minimum of eight (8) classroom hours of
				instruction.
(iii) the instructors
				must have had training or educational experience satisfactory to the
				Commissioner in order to be certified to teach any part of an approved course.
				Each instructor must have two (2) or more years in relevant insurance work or
				otherwise qualify with equivalent educational and teaching experience and be
				approved in writing by the Commissioner prior to teaching any preexamination
				course or any part thereof, which has been approved by the
				Commissioner.
(iv) reference
				materials such as sample policy forms, prospectuses, policy proposals and
				projections, reports to policyholders as required by this Regulation, the
				Georgia Insurance Code, text books, study manuals as appropriate and any other
				illustrative materials are required to be readily available for students'
				use.
(v) All classrooms used shall
				be rooms separate from other activities while instruction is being given, while
				providing comfortable and appropriate physical facilities for the
				students.
(vi) The subject matter
				of agent's preexamination courses must include the applicable provisions of the
				Georgia law and Georgia Insurance Department Regulations regarding variable
				life insurance.