reglab/statecodes huggingface dataset:
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.11 - Notification of Adverse Financial Condition

Current through Register 1525, July 5, 2024
The insurer required to furnish the annual Audited financial
				report shall require the independent certified public accountant to report, in
				writing, within five business days, to the board of directors or its Audit
				committee any determination by the independent certified public accountant that
				the insurer has materially misstated its financial condition as reported to the
				Commissioner as of the balance sheet date currently under audit or that the
				insurer does not meet the Massachusetts minimum capital and surplus requirement
				as of that date. An insurer who has received a report pursuant to this
				paragraph shall forward a copy of the report to the Commissioner within five
				business days of receipt of the report and shall provide the independent
				certified public accountant making the report with evidence of the report's
				being furnished to the Commissioner. If the independent certified public
				accountant fails to receive the evidence within the required five business day
				period, the independent certified public accountant shall furnish to the
				Commissioner a copy of its report within the next five business days.
No independent certified public accountant shall be liable in
				any manner to any person for any statement made in connection with the above
				paragraph if the statement is made in good faith in compliance with 211 CMR
				26.11.
If the accountant, subsequent to the date of the Audited
				financial report filed pursuant to
				211 CMR 26.00, becomes aware
				of facts that might have affected his or her report, the Division notes the
				obligation of the accountant to take such action as prescribed in the
				Professional Standards of the AICPA Volume 1, § AU 561.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.12 - Communication of Internal Control Related Matters Noted in an Audit

Current through Register 1525, July 5, 2024
In addition to the annual Audited financial report, each
				insurer shall furnish the Commissioner with a written communication as to any
				unremediated material weaknesses in its Internal controls over financial
				reporting noted during the audit. Such communication shall be prepared by the
				accountant within 60 days after the filing of the annual Audited financial
				report, and shall contain a description of any unremediated material weaknesses
				(as the term "material weakness" is defined by Statement on Auditing Standard
				60,
Communication of Internal Control Related Matters Noted in an
				Audit,
or its replacement) as of December
				31st immediately preceding (so as to coincide with
				the Audited financial report discussed in
				211
				CMR 26.05 ) in the insurer's Internal control
				over financial reporting noted by the accountant during the course of his or
				her audit of the financial statements. If no unremediated material weaknesses
				were noted, the communication should so state.
The insurer is required to provide a description of remedial
				actions taken or proposed to correct unremediated material weaknesses, if the
				actions are not described in the accountant's communication.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.13 - Accountant's Letter of Qualifications

Current through Register 1525, July 5, 2024
The accountant shall furnish the insurer in connection with,
				and for inclusion in, the filing of the annual Audited financial report, a
				letter stating the following:
(1) That
			 the accountant is independent with respect to the insurer and conforms to the
			 standards of his or her profession as contained in the Code of Professional
			 Ethics and pronouncements of the AICPA and the Rules of Professional Conduct of
			 the Massachusetts Board of Public Accountancy, or similar code.
(2) The background and experience in general,
			 and the experience in audits of insurers of the staff assigned to the
			 engagement and whether each is an independent certified public accountant.
			 Nothing within
			 211 CMR 26.00. shall be
			 construed as prohibiting the accountant from utilizing such staff as he or she
			 deems appropriate where such use is consistent with the standards prescribed by
			 generally accepted auditing standards.
(3) That the accountant understands the
			 annual Audited financial report and his opinion thereon will be filed in
			 compliance with
			 211 CMR 26.00 and that the
			 Commissioner will be relying on this information in the monitoring and
			 regulation of the financial position of insurers.
(4) That the accountant consents to the
			 requirements of
			 211
			 CMR 26.14 and that the accountant consents
			 and agrees to make available for review by the Commissioner, or the
			 Commissioner's designee or appointed agent, the workpapers, as defined in
			 211 CMR
			 26.04.
(5) A representation that the accountant is
			 properly licensed by an appropriate state licensing authority and is a member
			 in good standing in the AICPA and in all states in which he or she is licensed
			 to practice or, for a Canadian or British company, is a properly licensed
			 chartered accountant in good standing.
(6) A representation that the accountant is
			 in compliance with the requirements of
			 211 CMR
			 26.08.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.14 - Availability and Maintenance of Independent Certified Public Accountant Workpapers

Current through Register 1525, July 5, 2024
Every insurer required to file an Audited financial report
				pursuant to
				211 CMR 26.00 shall require
				the accountant to make available for review by the Commissioner or his or her
				appointed agent, all workpapers prepared in the conduct of the accountant's
				audit of the insurer, which shall include its parent and affiliates, as they
				relate to the audit of the insurer, and any communications related to the audit
				between the accountant and the insurer, at the offices of the insurer, at the
				Division or at any other reasonable place designated by the Commissioner. The
				insurer shall require that the accountant retain the audit workpapers and
				communications until the Division has filed a Report on Examination covering
				the period of the audit but no longer than seven years from the date of the
				audit report.
The aforementioned reviews by the Commissioner or his or her
				appointed agent shall be considered investigations and all workpapers and
				communications obtained during the course of such investigations shall be
				confidential as provided for under M.G.L. c. 175, § 4. The insurer shall
				require that the independent certified public accountant provide photocopies to
				the Division of any of the workpapers that the Division considers relevant,
				which may be retained by the Division.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.15 - Canadian and British Companies

Current through Register 1525, July 5, 2024
(1) In the case
			 of Canadian and British insurers, the annual Audited financial report shall be
			 defined as the annual statement of total business on the form filed by such
			 companies with their supervision authority duly audited by an independent
			 chartered accountant.
(2) For such
			 insurers, the letter required in
			 211 CMR
			 26.07 shall state that the accountant is
			 aware of the requirements relating to the annual Audited financial report filed
			 with the Commissioner pursuant to
			 211
			 CMR 26.05 and shall affirm that the opinion
			 expressed is in conformity with those requirements.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.17 - Internal Audit Function Requirements

Current through Register 1525, July 5, 2024
(1)
Exemption
. An insurer is exempt from the requirements
			 of 211 CMR 26.17 if:
(a) The insurer has
			 annual direct written and unaffiliated assumed premium, including international
			 direct and assumed premium, but excluding premiums reinsured with the Federal
			 Crop Insurance Corporation and Federal Flood Program, less than $500,000,000;
			 and
(b) If the insurer is a member
			 of a Group of insurers, the group has annual direct written and unaffiliated
			 assumed premium including international direct and assumed premium, but
			 excluding premiums reinsured with the Federal Crop Insurance Corporation and
			 Federal Flood Program, less than $1,000,000,000.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.18 - Conduct of Insurer in Connection with the Preparation of Required Reports and Documents

Current through Register 1525, July 5, 2024
(1) No director or
			 officer of an insurer shall, directly or indirectly:
(a) Make or cause to be made a materially
			 false or misleading statement to an accountant in connection with any audit,
			 review or communication required under
			 211 CMR 26.00; or
(b) Omit to state, or cause another person to
			 omit to state, any material fact necessary in order to make statements made, in
			 light of the circumstances under which the statements were made, not misleading
			 to an accountant in connection with any audit, review or communication required
			 under
			 211 CMR 26.00.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.21 - Severability

Current through Register 1525, July 5, 2024
If any provision of
				211 CMR 26.00 is held
				invalid, such invalidity shall not affect other provisions of
				211 CMR 26.00, which are
				severable.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 27.00 - Military Sales Practices › Section 27.01 - Purpose

Current through Register 1525, July 5, 2024
(1) The purpose of
			 211 CMR
			 27.00 is to set forth standards to protect active duty
			 service members of the United States Armed Forces from dishonest and predatory
			 insurance sales practices by declaring certain identified practices to be
			 false, misleading, deceptive or unfair.
(2) Nothing in
			 211 CMR
			 27.00 shall be construed to create or imply a private
			 cause of action for a violation.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 27.00 - Military Sales Practices › Section 27.02 - Scope

Current through Register 1525, July 5, 2024
211 CMR
				27.00 shall apply only to the solicitation or sale of
				any life insurance or annuity product by an insurer or insurance producer to an
				active duty service member of the United States Armed Forces.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 27.00 - Military Sales Practices › Section 27.03 - Exemptions

Current through Register 1525, July 5, 2024
(1)
								211 CMR
			 27.00 shall not apply to solicitations or sales
			 involving:
(a) Credit insurance;
(b) Group life insurance or group annuities
			 where there is no in-person, face-to-face solicitation of individuals by an
			 insurance producer or where the contract or certificate does not include a side
			 fund;
(c) An application to the
			 existing insurer that issued the existing policy or contract when a contractual
			 change or a conversion privilege is being exercised; or, when the existing
			 policy or contract is being replaced by the same insurer pursuant to a program
			 filed with and approved by the commissioner; or, when a term conversion
			 privilege is exercised among corporate affiliates;
(d) Individual stand-alone health policies,
			 including disability income policies;
(e) Contracts offered by Service members'
			 Group Life Insurance (SGLI) or Veterans' Group Life Insurance (VGLI), as
			 authorized by
			 38
			 U.S.C. §
										1965
et seq
.
			 or State Sponsored Life Insurance (SSLI) as authorized by
			 37 U.S.C. §
										707
et seq
.;
(f) Life insurance contracts offered through
			 or by a non-profit military association, qualifying under § 501(c)(23) of
			 the Internal Revenue Code (IRC), and which are not underwritten by an insurer;
			 or
(g) Contracts used to fund:
1. An employee pension or welfare benefit
			 plan that is covered by the Employee Retirement and Income Security Act
			 (ERISA);
2. A plan described by
			 §§ 401(a), 401(k), 403(b), 408(k) or 408(p) of the IRC, if
			 established or maintained by an employer;
3. A government or church plan defined in
			 § 414 of the IRC, a government or church welfare benefit plan, or a
			 deferred compensation plan of a state or local government or tax exempt
			 organization under § 457 of the IRC;
4. A nonqualified deferred compensation
			 arrangement established or maintained by an employer or plan sponsor;
5. Settlements of or assumptions of
			 liabilities associated with personal injury litigation or any dispute or claim
			 resolution process; or
6.
			 Prearranged funeral contracts.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 27.00 - Military Sales Practices › Section 27.05 - Practices Declared False, Misleading, Deceptive or Unfair on a Military Installation

Current through Register 1525, July 5, 2024
(1) The following
			 acts or practices when committed on a military installation by an insurer or
			 insurance producer with respect to the in-person, face-to-face solicitation of
			 life insurance are declared to be false, misleading, deceptive or unfair acts
			 or practices prohibited by M.G.L. c. 176D, § 3:
(a) Knowingly soliciting the purchase of any
			 life insurance product "door to door" or without first establishing a specific
			 appointment for each meeting with the prospective purchaser.
(b) Soliciting service members in a group or
			 "mass" audience or in a "captive" audience where attendance is not
			 voluntary.
(c) Knowingly making
			 appointments with or soliciting service members during their normally scheduled
			 duty hours.
(d) Making appointments
			 with or soliciting service members in barracks, day rooms, unit areas, or
			 transient personnel housing or other areas where the installation commander has
			 prohibited solicitation.
(e)
			 Soliciting the sale of life insurance without first obtaining permission from
			 the installation commander or the commander's designee.
(f) Posting unauthorized bulletins, notices
			 or advertisements.
(g) Failing to
			 present DD Form 2885, Personal Commercial Solicitation Evaluation, to service
			 members solicited or encouraging service members solicited not to complete or
			 submit a DD Form 2885.
(h)
			 Knowingly accepting an application for life insurance or issuing a policy of
			 life insurance on the life of an enlisted member of the United States Armed
			 Forces without first obtaining for the insurer's files a completed copy of any
			 required form which confirms that the applicant has received counseling or
			 fulfilled any other similar requirement for the sale of life insurance
			 established by regulations, directives or rules of the DoD or any branch of the
			 Armed Forces.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 27.00 - Military Sales Practices › Section 27.07 - Severability

Current through Register 1525, July 5, 2024
If any provision of
				211 CMR
				27.00 or the application thereof to any person or
				circumstance is held invalid for any reason, the invalidity shall not affect
				the other provisions or any other application of which can be given effect
				without the invalid provisions or application. To this end all provisions are
				declared to be severable.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.01 - Purpose

Current through Register 1525, July 5, 2024
The purpose of
				211
				CMR 28.00 is to provide rules for life insurance
				policy illustrations that will protect consumers and foster consumer education.
				211
				CMR 28.00 provides illustration formats, prescribes
				standards to be followed when illustrations are used, and specifies the
				disclosures that are required in connection with illustrations. The goal of
				211
				CMR 28.00 is to ensure that illustrations do not
				mislead purchasers of life insurance and to make illustrations more
				understandable. Insurers will, as far as possible, eliminate the use of
				footnotes and caveats and define terms used in the illustration in language
				that will be understood by a typical person within the segment of the public to
				which the illustration is directed.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.03 - Applicability and Scope

Current through Register 1525, July 5, 2024
211
				CMR 28.00 applies to all group and individual life
				insurance policies and certificates except:
(1) Variable life insurance;
(2) Individual and group annuities;
(3) Credit life insurance; and
(4) Life insurance policies with no
			 illustrated death benefits on any individual exceeding $10,000.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.05 - Policies to Be Illustrated

Current through Register 1525, July 5, 2024
(1) Each insurer
			 marketing policies to which
			 211
			 CMR 28.00 is applicable shall notify the commissioner
			 whether a policy form is to be marketed with or without an illustration. For
			 all policy forms being actively marketed on the effective date of
			 211
			 CMR 28.00, the insurer shall identify in writing those
			 forms and whether or not an illustration will be used with them. For policy
			 forms filed after September 1, 2006, the identification shall be made at the
			 time of filing. Any previous identification may be changed by notice to the
			 commissioner.
(2) 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.
(3) 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
			 211
			 CMR 28.00 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.
(4) Potential enrollees of non-term group
			 life subject to
			 211
			 CMR 28.00 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
			 211
			 CMR 28.00, 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.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.06 - General Rules and Prohibitions

Current through Register 1525, July 5, 2024
(1) An
			 illustration used in the sale of a life insurance policy shall satisfy the
			 applicable requirements of
			 211
			 CMR 28.00, be clearly labeled "life insurance
			 illustration" and contain the following basic information:
(a) Name of insurer;
(b) Name and business address of insurance
			 producer or insurer's authorized representative, if any;
(c) Name, age and sex of proposed insured,
			 except where a composite illustration is permitted under
			 211
			 CMR 28.00;
(d) Underwriting or rating classification
			 upon which the illustration is based;
(e) Generic name of policy, the company
			 product name, if different, and form number;
(f) Initial death benefit; and
(g) Dividend option election or application
			 of non-guaranteed elements, if applicable.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.08 - Standards for Supplemental Illustrations

Current through Register 1525, July 5, 2024
(1) A
			 supplemental illustration may be provided so long as:
(a) It is appended to, accompanied by or
			 preceded by a basic illustration that complies with
			 211
			 CMR 28.00;
(b) The non-guaranteed elements shown are not
			 more favorable to the policy owner than the corresponding elements based on the
			 scale used in the basic illustration;
(c) It contains the same statement required
			 of a basic illustration that non-guaranteed elements are not guaranteed;
			 and
(d) 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 the premium outlay shown in the
			 basic illustration.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.09 - Delivery of Illustration and Record Retention

Current through Register 1525, July 5, 2024
When an insurance producer or other authorized representative
				of the insurer uses a basic illustration in the sale of a life insurance policy
				the following shall be adhered to:
(1)
			 The insurance producer or other authorized representative shall give a signed
			 copy of that illustration to both the applicant and the insurer at the time the
			 applicant applies for the policy, if the applicant applies for the policy as
			 illustrated;
(2) For the purpose in
			 211 CMR 28.09(1), a signature on an electronic copy of the illustration shall
			 satisfy the requirement for a signed copy;
(3) If the illustration is displayed to the
			 applicant electronically and no hard copy is furnished to the applicant at the
			 time of application, an acknowledgement, signed by the applicant and insurance
			 producer or authorized representative for the insurance producer, shall be
			 obtained by the insurance producer or authorized representative for the
			 insurance producer at the time of application and submitted with the
			 application;
(4) The
			 acknowledgement in 211 CMR 28.09(3) shall contain the following:
(a) The applicant's gender
(b) The applicant's age
(c) The underwriting or rating
			 class
(d) The type of policy for
			 which an application is submitted
(e) The initial death benefit
(f) The dividend option, if any
(g) The insurance producer's name;
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.10 - Annual Report; Notice to Policy Owners

Current through Register 1525, July 5, 2024
(1)
			 In the case of a policy designated as one for which illustrations will be used,
			 the insurer shall provide each policy owner with an annual report on the status
			 of the policy that shall contain at least the following information:
(a) For universal life policies, the report
			 shall include all of the following:
1. The
			 beginning and end date 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 as of the end of the current report period; and
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 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
8. 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.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.11 - Annual Certifications

Current through Register 1525, July 5, 2024
(1) The board of
			 directors of each insurer shall appoint one or more illustration
			 actuaries.
(2) The illustration
			 actuary shall certify that the disciplined current scale used in illustrations
			 is in conformity with the Actuarial Standard of Practice for Compliance with
			 the NAIC Model Regulation on Life Insurance Illustrations promulgated by the
			 Actuarial Standards Board, and that the illustrated scales used in
			 insurer-authorized illustrations meet the requirements of
			 211
			 CMR 28.00.
(3) The illustration actuary shall:
(a) Be a member in good standing of the
			 American Academy of Actuaries
(b)
			 Be familiar with the standard of practice regarding life insurance policy
			 illustrations
(c) Not have been
			 found by the commissioner, following appropriate notice and hearing to have:
1. 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;
2. Been found guilty of fraudulent or
			 dishonest practices;
3.
			 Demonstrated his or her incompetence, lack of cooperation, or untrustworthiness
			 to act as an illustration actuary; or
4. Resigned or been removed as an
			 illustration actuary within the past five 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.
(d) Not fail to notify the
			 commissioner of any action taken by a commissioner of another state similar to
			 that under 211 CMR 28.11(3)(c).
(e)
			 Disclose in the annual certification whether, since the last certification, a
			 currently payable scale applicable for business issued within the previous five
			 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 nonguaranteed 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 nonguaranteed elements illustrated
			 for both new and in force policies are not consistent with the nonguaranteed
			 elements actually being paid, charged or credited to the same or similar forms,
			 this must be disclosed in the annual certification; and
(f) Disclose in the annual certification the
			 method used to allocate overhead expenses for all illustrations:
1. Fully allocated expenses;
2. Marginal expenses; or
3. A generally recognized expense table based
			 on fully allocated expenses representing a significant portion of insurance
			 companies and approved by the commissioner.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.12 - Penalties

Current through Register 1525, July 5, 2024
In addition to any other penalties provided by the laws of this
				state, an insurer or insurance producer that violates a requirement of
				211
				CMR 28.00 shall be guilty of a violation of the
				provisions of M.G.L. c. 176D.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 28.00 - Life Insurance Illustrations › Section 28.13 - Severability

Current through Register 1525, July 5, 2024
If any provision of
				211
				CMR 28.00 or its application to any person or
				circumstance is for any reason held to be invalid by any court of law, the
				remainder of
				211
				CMR 28.00 and its application to other persons or
				circumstances shall not be affected.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 29.00 - Valuation Of Life Insurance Policies › Section 29.01 - Purpose

Current through Register 1525, July 5, 2024
The purpose of
				211 CMR 29.00 is to provide
				tables of select mortality factors and rules for their use, rules concerning a
				minimum standard for the valuation of plans with non level premiums or
				benefits, and rules concerning a minimum standard for the valuation of plans
				with secondary guarantees. The method for calculating basic reserves defined in
				211 CMR 29.00 will constitute
				the Commissioners' Reserve Valuation Method for policies to which
				211 CMR 29.00 is
				applicable.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 29.00 - Valuation Of Life Insurance Policies › Section 29.03 - Applicability

Current through Register 1525, July 5, 2024
211 CMR 29.00 shall apply to
				all life insurance policies, with or without nonforfeiture values, issued by a
				carrier on or after January 1, 2001, subject to the following exceptions and
				conditions.
(1)
Exceptions.
(a)
									211 CMR 29.00 shall not apply
			 to any individual life insurance policy issued on or after January 1, 2001 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 of the same
			 or greater face amount, issued before January 1, 2001, that guarantees the
			 premium rates of the new policy,
			 211 CMR 29.00 also shall 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.
(b)
									211 CMR 29.00 shall not apply
			 to any universal life policy that meets all the following requirements:
1. The secondary guarantee period, if any, is
			 five years or less;
2. The
			 specified premium for the secondary guarantee period is not less than the net
			 level reserve premium for the secondary guarantee period based on the CSO
			 valuation tables as defined in
			 211 CMR 29.04 and the
			 applicable valuation interest rate; and
3. The initial surrender charge is not less
			 than 100% of the first year annualized specified premium for the secondary
			 guarantee period.
(c)
									211 CMR 29.00 shall 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.
(d)
									211 CMR 29.00 shall 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.
(e)
									211 CMR 29.00 shall not apply
			 to a group life insurance certificate unless the certificate provides 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.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 29.00 - Valuation Of Life Insurance Policies › Section 29.05 - General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves

Current through Register 1525, July 5, 2024
(1) At the election
			 of the carrier 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 (or any other valuation
			 mortality table adopted by the NAIC after the effective date of
			 211 CMR 29.00 and promulgated
			 by regulation by the commissioner for this purpose). If select mortality
			 factors are elected, they may be:
(a) The
			 ten-year select mortality factors incorporated into the 1980 amendments to the
			 NAIC Standard Valuation Law;
(b)
			 The select mortality factors in
			 211 CMR 29.100:
Appendix
; or
(c)
			 Any other table of select mortality factors adopted by the NAIC after the
			 effective date of
			 211 CMR 29.00 and promulgated
			 by regulation by the commissioner for the purpose of calculating basic
			 reserves.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 29.00 - Valuation Of Life Insurance Policies › Section 29.06 - Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)

Current through Register 1525, July 5, 2024
(1)
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 shall use the same
			 valuation mortality table and selection factors. At the option of the carrier,
			 in calculating segmented reserves and net premiums, either of the adjustments
			 described in 211 CMR 29.06(1)(a) or 211 CMR 29.06(1)(b) may be made:
(a) 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.
(b) 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.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 29.00 - Valuation Of Life Insurance Policies › Section 29.07 - Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policy owner to Keep a Policy in Force Over a Secondary Guarantee Period

Current through Register 1525, July 5, 2024
(1)
General.
(a)
			 Policies with a secondary guarantee include:
1. 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;
2. 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 any other table adopted after the
			 effective date of
			 211 CMR 29.00 by the NAIC and
			 promulgated by regulation by the commissioner for this purpose; or
3. A policy with any combination of 211 CMR
			 29.07(1)(a)1. or 211 CMR 29.07(1)(a)2.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 29.00 - Valuation Of Life Insurance Policies › Section 29.08 - Severability

Current through Register 1525, July 5, 2024
If any section or portion of a section of
				211 CMR 29.00 or the
				applicability thereof to any person or circumstance is held invalid by any
				Court of competent jurisdiction, the remainder of
				211 CMR 29.00, or the
				applicability thereof to other persons or circumstances, shall not be affected
				thereby.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.01 - Authority

Current through Register 1525, July 5, 2024
211 CMR 30.00 is promulgated
				pursuant to the authority of M.G.L. c. 175, § 54G.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.02 - Purpose

Current through Register 1525, July 5, 2024
The purpose of
				211 CMR 30.00 is to set forth
				rules and procedural requirements which the Commissioner of Insurance deems
				necessary for protection of the public and to carry out the provisions of
				M.G.L. c. 175, § 54G.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.03 - Severability

Current through Register 1525, July 5, 2024
If any provision of
				211 CMR 30.00, or application
				thereof to any person or circumstance, is held invalid, such invalidity shall
				not affect other provisions or applications of
				211 CMR 30.00 which can be
				given effect without the invalid provision or application, and to that end the
				provisions of
				211 CMR 30.00 are
				severable.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.04 - Applicability

Current through Register 1525, July 5, 2024
211 CMR 30.00 shall apply to
				any life insurance company which seeks to avail itself of the authority granted
				in the above referenced section of Massachusetts law to reinsure property and
				casualty insurance risks.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.05 - Notice of Intention and Securing of Approval

Current through Register 1525, July 5, 2024
Any authorized life insurance company which pursuant to the
				authority granted by the above referenced section of Massachusetts Law intends
				either by itself or together with other insurers through pooling arrangements
				or otherwise to reinsure property and casualty risks of every kind and
				description must:
(1) File a notice of
			 intention in writing to the Commissioner. This notice of intention shall set
			 forth the proposed plan of operations, the qualifications of its staff to
			 engage in this reinsurance business, proof that its charter and, in the case of
			 a foreign life insurer, the laws of its place of domicile authorize it to
			 engage in such business and proof, in the case of a foreign life insurer, that
			 the insurance regulatory authorities of its place of domicile have been
			 informed of its intended participation and have not objected to such
			 participation and that it has posted the required deposit; and
(2) Obtain the advance written approval of
			 the Commissioner prior to the writing of such reinsurance business.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.06 - Financial Requirements

Current through Register 1525, July 5, 2024
(1) The
			 conventional operations of such life insurance companies shall, to the extent
			 possible, be accounted for separately from its property and casualty
			 reinsurance business. Accordingly, each life insurance company proposing to
			 engage in such business shall account for this business as a separate line of
			 business. Life insurers transacting this reinsurance business shall be subject
			 to the same statutory provisions and administrative rules relating to net
			 annual premium volume and the maintenance of reserves for unearned premiums and
			 unpaid losses as are applicable to fire and casualty insurers transacting this
			 reinsurance.
(2) As a condition
			 precedent to approval of the entry of a life insurer into the property and
			 casualty reinsurance business, the insurer shall demonstrate that the company
			 maintains unallocated surplus of not less than $1 million and also in the case
			 of a foreign insurer, unless it maintains an unallocated surplus of $1 million
			 and has made a deposit in an amount and subject to the conditions specified in
			 M.G.L. c. 175, § 151 clause Second (3).
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.07 - Limitation of Risk

Current through Register 1525, July 5, 2024
Notwithstanding the other provisions of
				211 CMR 30.00, for the
				purpose of determining the extent to which a life insurance company may expose
				itself to loss of any single property or casualty reinsurance risk, the
				standard to be observed is that the amount of any single property and casualty
				reinsurance risk shall be limited to not more than 2% of the life insurer's
				total surplus including capital, if any.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.08 - Records and Reporting

Current through Register 1525, July 5, 2024
Each life insurer engaging in the property and casualty
				business shall maintain accounting records which adequately reflect the
				operation of this reinsurance business in a like manner as any fire or casualty
				insurer doing the same kind of business. Each life insurer engaging in such
				business shall report to the Commissioner in such manner and at such time as
				the Commissioner may hereafter prescribe with respect to these lines of
				business, the funds applied thereto and the allocation of
				expenses.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 30.00 - Reinsurance Of Property And Casualty Risks By Life Insurers › Section 30.09 - Pooling Agreements

Current through Register 1525, July 5, 2024
(1) Pooling
			 agreements for each life insurer engaging in the property and casualty
			 reinsurance business shall be filed with the Commissioner for his advance
			 written approval. The Commissioner shall approve the agreement upon his making
			 a determination that:
(a) the agreement
			 conforms to the requirements of Massachusetts Law and
			 211 CMR 30.00;
(b) the agreement will not unreasonably
			 restrain competition or tend to create a monopoly;
(c) there exists a reasonable basis for the
			 admission of additional members; and
(d) the agreement permits any member to
			 accept reinsurance on its own behalf outside the pool.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 31.00 - Life Insurance Solicitation › Section 31.02 - Purpose

Current through Register 1525, July 5, 2024
(1) The purpose of
			 211
			 CMR 31.00 is to require insurers to deliver to
			 purchasers of life insurance information which will improve the buyer's ability
			 to select the most appropriate plan of life insurance for the buyer's needs,
			 improve the buyer's understanding of the basic features of the policy which has
			 been purchased or which is under consideration and improve the ability of the
			 buyer to evaluate the relative costs of similar plans of life
			 insurance.
(2)
								211
			 CMR 31.00 does not prohibit the use of additional
			 material which is not in violation of
			 211
			 CMR 31.00 or any other state statute or
			 regulation.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 31.00 - Life Insurance Solicitation › Section 31.03 - Scope

Current through Register 1525, July 5, 2024
(1) Except for the exemptions specified in
			 211 CMR 31.03(2),
			 211
			 CMR 31.00 shall apply to any solicitation, negotiation
			 or procurement of life insurance occurring within Massachusetts.
			 211 CMR 31.05(2)
			  shall apply only to an existing nonexempt
			 policy held by a policy owner residing in Massachusetts.
			 211
			 CMR 31.00 shall apply to any issuer of life insurance
			 contracts including fraternal benefit societies.
(2) Unless otherwise specifically included,
			 211
			 CMR 31.00 shall not apply to:
(a) Individual and group annuity
			 contracts;
(b) Credit life
			 insurance;
(c) Group life insurance
			 (except for disclosures relating to pre-need funeral contracts and
			 arrangements; these disclosure requirements shall extend to the issuance or
			 delivery of certificates as well as to the master policy);
(d) Life insurance policies issued in
			 connection with pension and welfare plans as defined by and which are subject
			 to the federal Employee Retirement Income Security Act of 1974 (ERISA),
			 29 U.S.C Section
			 1001
et seq
.; or
(e) Variable life insurance under which the
			 amount or duration of the life insurance varies according to the investment
			 experience of a separate account.
Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 31.00 - Life Insurance Solicitation › Section 31.05 - Duties of Insurers

Current through Register 1525, July 5, 2024
(1)
Requirements Applicable Generally.
(a) The insurer shall provide a Buyer's Guide
			 to all prospective purchasers prior to accepting the applicant's initial
			 premium or premium deposit. However, if the policy for which application is
			 made contains an unconditional refund provision of at least ten days, the
			 Buyer's Guide may be delivered with the policy or prior to delivery of the
			 policy.
(b) The insurer shall
			 provide a policy summary to prospective purchasers where the insurer has
			 identified the policy form as one that will not be marketed with an
			 illustration. The policy summary shall show guarantees only. It shall consist
			 of a separate document with all required information set out in a manner that
			 does not minimize or render any portion of the summary obscure. Any amounts
			 that remain level for two or more years of the policy may be represented by a
			 single number if it is clearly indicated what amounts are applicable for each
			 policy year. Amounts in
			 211 CMR 31.04:
Policy Summary
(e) shall be listed in total, not on a
			 per thousand or per unit basis. If more than one insured is covered under one
			 policy or rider, death benefits shall be displayed separately for each insured
			 or for each class of insureds if the death benefits do not differ within the
			 class. Zero amounts shall be displayed as a blank space. Delivery of the policy
			 summary shall be consistent with the time for delivery of the Buyer's Guide as
			 specified in 211 CMR 31.05(1)(a).