reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 08 - PROPERTY AND CASUALTY INSURANCE › Chapter 31.08.17 - Statement of Actual Reason for Cancellation or Nonrenewal of Commercial Insurance Policy › Section 31.08.17.01 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. This chapter applies only to policies of commercial insurance.
B. This chapter does not apply to:
(1) A policy in effect for 45 days or less, as provided in Insurance Article, §
										12-106, Annotated Code of Maryland; or
(2) A policy issued to an exempt commercial policyholder under Insurance Article, §
										11-206, Annotated Code of Maryland, if the policy provides for written notice of not less than 30 days of the insurer's intent to cancel or refusal to renew.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 08 - PROPERTY AND CASUALTY INSURANCE › Chapter 31.08.17 - Statement of Actual Reason for Cancellation or Nonrenewal of Commercial Insurance Policy › Section 31.08.17.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter the following term has the meaning indicated.
B. Commercial Insurance Defined.
(1) "Commercial insurance" means property insurance or casualty insurance:
(a) Issued to an individual, sole proprietor, partnership, corporation, limited liability company, or similar entity; and
(b) Intended to insure against loss arising from the business pursuits of the insured entity.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 08 - PROPERTY AND CASUALTY INSURANCE › Chapter 31.08.17 - Statement of Actual Reason for Cancellation or Nonrenewal of Commercial Insurance Policy › Section 31.08.17.03 - Statement of Actual Reason

Current through Register Vol. 51, No. 14, July 12, 2024
A. Whenever an insurer cancels or refuses to renew a policy of commercial insurance for a reason other than nonpayment of premium, the insurer shall provide to the named insured a written statement of the actual reason for the cancellation or refusal to renew.
B. An insurer shall include in a statement of actual reason:
(1) An offer to provide additional information in support of the proposed action on the written request of the insured;
(2) A notice that if the insured would like additional information in support of the proposed action, the insured is required to send the written request for additional information within 30 days after the date of the statement of actual reason; and
(3) An address for the insured to submit the written request for additional information.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 08 - PROPERTY AND CASUALTY INSURANCE › Chapter 31.08.18 - Homeowner's Insurance Notice › Section 31.08.18.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to provide the form that insurers may use to comply with the requirements of Insurance Article, §§
									19-202,  19-205(a)(4)(vii), 19-2100,  19-214(a),  19-216, and  27-501(n)  (2), Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 08 - PROPERTY AND CASUALTY INSURANCE › Chapter 31.08.18 - Homeowner's Insurance Notice › Section 31.08.18.03 - No Private Cause of Action

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter does not create a private cause of action for a violation of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.01 - Definition

Current through Register Vol. 51, No. 14, July 12, 2024
A. "Wholesale life insurance" means life insurance distributed on a mass merchandising basis and administered by group methods provided, with or without evidence of insurability, by individual policies and made available to employees or members under a program sponsored by:
(1) An employer;
(2) An association of employers;
(3) A union or association of unions;
(4) An association of persons having the same occupation or profession;
(5) An association of civil service employees;
(6) A religious, charitable, recreational, educational, civic, or fraternal organization or association;
(7) A school;
(8) A sports team;
(9) A volunteer fire department; or
(10) Any substantially similar group approved by the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.02 - Plan of Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
Wholesale life insurance policies may be issued on the yearly or more frequently renewable term plan or on any other term or on any whole life or endowment plan. If the policy is issued on the yearly or more frequently renewable term plan or any other term plan, it shall contain the right of renewal to at least age 65 nearest birthday (subject, however, to the insurer's right to refuse renewal in accordance with Regulation .05 of this chapter), and shall contain the right to convert to a whole life or endowment plan after termination of the final term period. However, the policy need not provide the privilege of renewal of term insurance on a dependent child beyond age 19 nearest birthday. Whenever the policy is not eligible for renewal as a wholesale life insurance policy, it shall contain such additional conversion rights as are hereinafter set forth if written on a yearly or more frequently renewable term basis or, if written on other than a yearly or more frequently renewable term basis, shall give the insured employee or member the right to continue the insurance under the original policy at the same premium, or at a stated higher premium which may not exceed rates charged by the insurer for ordinary policies issued under the same policy plan of insurance for the same class of risk.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.03 - Premium Rates

Current through Register Vol. 51, No. 14, July 12, 2024
A. Premium rates for wholesale life insurance policies may be less than rates customarily charged by the insurer for ordinary policies issued under the same policy plan of insurance for the same class of risk.
B. Policies Issued on the Yearly or More Frequently Renewable Term Plan. The policy shall contain a table of renewable premiums for all ages up to the limiting age for renewal. Ages may be grouped for the purpose of premium rates either by one group for ages under 40 or by decennial (10-year) or smaller age groupings for ages under 40, and by quinquennial (5-year) or smaller age groupings for ages 40 to 75. The insurer may reserve the right to change the table of rates upon 30 days prior written notice to the sponsor and to the insured employee or member, the change to become effective on a premium due date or on a policy renewal date specified in the notice, but an increase in rates may not become effective within 1 year after issue of the policy or after the effective date of any prior change in the table of rates.
C. Policies Issued on Other Than the Yearly or More Frequently Renewable Term Plan. A policy issued on other than the yearly or more frequently renewable term plan shall have premium rates guaranteed in the policy. These rates may not be changed while the policy is continued as a wholesale life insurance policy. However, the insurer may make a change in its schedule of premium rates to be effective for policies issued after the effective date of the change to employees or members of the same sponsor.
D. Nondiscrimination. Premium rates shall be self-supporting on reasonable assumptions as to mortality, interest, and expense and may not unfairly discriminate between any class or classes of persons insured.
E. Experience Refund. An insurer may grant experience refunds to a case either retrospectively or prospectively, if all wholesale life insurance cases of the same class are experience rated by the insurer on a equitable basis taking into consideration size, credibility, and other relevant factors.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.04 - Permissible Cases

Current through Register Vol. 51, No. 14, July 12, 2024
A. Evidence of Insurability. The insurer may require evidence of insurability on individual lives.
B. Contributory and Noncontributory. Premiums for the policies may be paid by the sponsor or by the employee or member insured, or partly by the sponsor and partly by the employee or member insured.
C. Employer Sponsored Case.
(1) The class or classes of persons to be insured initially shall consist of not less than two employees. An employer sponsored case which meets the qualifications for a group life insurance policy under Insurance Article, Title 17, Annotated Code of Maryland, as amended to date, and under which more than 32 employees are initially eligible, may not be written on a wholesale life insurance basis. The term "employees" may include:
(a) Directors and officers, if the employer is a corporation;
(b) An individual proprietor or partner, if the employer is an individual proprietor or a partnership;
(c) Elected or appointed officials, if the employer is a government unit, department, or agency; and
(d) Retired employees.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.05 - Right to Refuse Renewal

Current through Register Vol. 51, No. 14, July 12, 2024
A. The insurer may reserve the right to nonrenew a policy in the wholesale life insurance category only for one or more of the following reasons as may be specified in the policy:
(1) Nonpayment of premium;
(2) Termination of the employee's employment with the sponsor, or the termination of his employment in an eligible class of employees of the sponsor;
(3) The termination of membership in the sponsor, or the termination of membership in an eligible class of membership of the sponsor, or when a member ceases to practice the profession or occupation with respect to which the policy was issued;
(4) The maturity of the policy, or the attainment of the limiting age for renewal stated in the policy;
(5) The nonrenewal at the request of the sponsor of all policies issued in the case;
(6) The nonrenewal by the insurer of all policies issued to employees or members of the sponsors, the nonrenewal to be effective on a premium due date or on a renewal date following the insurer's giving at least 60 days prior written notice to the sponsor and to each employee or member insured; or
(7) Any other condition for nonrenewal approved by the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.06 - Notice of Conversion

Current through Register Vol. 51, No. 14, July 12, 2024
Whenever a conversion privilege is available under the policy or whenever a policy which is not eligible for renewal as a wholesale life insurance policy may be continued by payment of an increased premium, the insurer shall give the individual employee or member insured written notice of the right to convert or continue. The notice shall be given not more than 60 days before or more than 15 days after the termination or nonrenewal of insurance under the wholesale life insurance policy. If the notice is given more than 15 days after termination or nonrenewal of insurance, the time allowed for the exercise of the privilege of conversion or payment of the increased premium shall be extended for 15 days after the giving of the notice, but not beyond 90 days after the termination or nonrenewal of insurance. An extension of the time to convert or continue the policy does not operate to extend the coverage beyond the period stated in the policy, unless the policy specifically provides for an extension of the coverage. Written notice under this provision may be given by timely mailing of the notice to the employee or member insured at the employee's or member's most recent address known to the insurer or to the sponsor. Notice described in this regulation is not required when the policy may be continued as a wholesale life insurance policy with the same sponsor at an increased premium which is called for in the policy's schedule of premiums because of an increase in the attained age of the person insured or because of a change in the table of rates stated in the policy. In event of a change in the table of rates, notice shall be given as set forth in Regulation .03B of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.07 - Brief Description

Current through Register Vol. 51, No. 14, July 12, 2024
Each wholesale life insurance policy shall have legibly inscribed on the first page a brief description which shall include the word "wholesale" and such other information as may be required by Insurance Article, §
									16-213, Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.09 - Combination of Life and Health Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A wholesale life insurance policy may include, or may provide by rider, health insurance benefits, in which case the policy shall contain provisions relating to the health insurance which may not be less favorable to the insured employee or member than the applicable provisions required under Insurance Article, Title 15, Annotated Code of Maryland, and under any applicable regulations issued thereunder for a policy providing similar benefits. Upon discontinuance of the policy as a wholesale life insurance policy, any health insurance benefits originally provided may not be included in any conversion privilege unless the insurer, at its option, shall so provide, in which case the provision in the policy regarding the conversion privilege shall clearly indicate the extent of health insurance benefits which may be continued after the policy ceases to be a wholesale life insurance policy.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.10 - Policy Restrictions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Prohibited Provisions. A wholesale life insurance policy may not contain any provision which is prohibited under Insurance Article, §
									12-209 or  16-216, Annotated Code of Maryland.
B. Limitations of Liability. A wholesale life insurance policy may not contain any limitation of liability which is less favorable to the policyholder than limitations permitted under Insurance Article, §
									16-215, Annotated Code of Maryland.
C. Separate Agreements. A separate agreement may not be entered into between the insurer and the sponsor which would purport to change the terms and conditions of any wholesale life insurance policy delivered to an employee or member.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.11 - Validity of Noncomplying Forms

Current through Register Vol. 51, No. 14, July 12, 2024
Any wholesale life insurance policy hereafter issued and otherwise valid which contains any condition or provision not in compliance with the requirements of Insurance Article, Annotated Code of Maryland, and of any applicable regulations may not be thereby rendered invalid, but shall be construed in accordance with conditions and provisions at least as favorable as those required under Insurance Article, Annotated Code of Maryland, and the applicable regulations.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.01 - Wholesale Life Insurance › Section 31.09.01.12 - Effective Date

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter shall take effect January 1, 1969, provided, however, that for any case in existence before the effective date of this chapter and for any new case initially made effective before June 1, 1969, the insurer may issue policy forms approved by the Maryland Insurance Administration before January 1, 1969, for use as wholesale life insurance policies which approval was in effect on the initial effective date of that case, and, unless the Commissioner otherwise prescribes pursuant to the provisions of Insurance Article, Annotated Code of Maryland, and § 3 of Chapter 553 of the Acts of the 1963 General Assembly of Maryland, the insurer may hereafter continue to issue those policy forms to employees or members newly insured under that case.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.01 - Authority and Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter, applicable to variable life insurance policies, is promulgated under authority of Insurance Article, 2-109 and 16-601-----16-603, Annotated Code of Maryland. The issuance or delivery of life insurance policies on a variable basis in Maryland in any manner not in compliance with this chapter shall be deemed contrary to the requirements of Insurance Article, 16-601-----16-603, Annotated Code of Maryland, and, further, shall be deemed to constitute the transaction of insurance business hazardous to policyholders and the public and contrary to the public interest.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following words have the meanings indicated.
B. Terms Defined.
(1) "Affiliate" of an insurer means:
(a) A person, directly or indirectly, controlling, controlled by, or under common control with the insurer;
(b) A person who regularly furnishes investment advice to the insurer with respect to its variable life insurance separate accounts for which a specific fee or commission is charged; or
(c) A director, officer, partner, or employee of the insurer, controlling or controlled person, or person providing investment advice or any member of the immediate family of this person.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.04 - Insurance Policy Requirements - Policy Qualification

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Commissioner may not approve a variable life insurance form filed pursuant to this chapter unless it conforms to the requirements of this regulation.
B. Filing of Variable Life Insurance Policies.
(1) All variable life insurance policies, and all riders, endorsements, applications, and other documents which are to be attached to and made a part of the policy and which relate to the variable nature of the policy, shall be filed with the Commissioner and approved by him in writing before delivery or issuance for delivery in this State.
(2) The procedures and requirements for the filing and approval shall be, to the extent appropriate and not inconsistent with this chapter, the same as those otherwise applicable to other life insurance policies (for example, see particularly Insurance Article, §§
										12-102,  12-103,  12-203 -12-205, and 12-209, Annotated Code of Maryland, and COMAR 31.04.17).
(3) The Commissioner may approve variable life insurance policies and related forms with provisions the Commissioner deems to be not less favorable to the policyholder and the beneficiary than those required by this chapter.
(4) The requirements of §§C(1), C(4), D(5)(a), and D(16) of this regulation do not apply to variable life insurance policies and related forms issued in connection with pension, profit-sharing, and retirement plans if separate accounts for the policies are exempt pursuant to the federal Investment Company Act of 1940, § 3(c)(11).
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.08 - Applications

Current through Register Vol. 51, No. 14, 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);
C. Questions designed to elicit information which enables the insurer to determine the suitability of variable life insurance for the applicant.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.09 - Reports to Policyholders

Current through Register Vol. 51, No. 14, July 12, 2024
An insurer delivering or issuing for delivery in this State a variable life insurance policy shall mail to each variable life insurance policyholder at his or her last known address the following reports:
A. Within 30 days after each anniversary of the policy, a statement or statements of the cash surrender value, death benefit, any partial withdrawal or policy loan, any interest charge, and any optional payments allowed pursuant to Regulation .04E of this chapter under the policy computed as of the policy anniversary date. This statement may be furnished within 30 days after a specified date in each policy year as long as the information contained in it is computed as of a date not more than 45 days before the mailing of the notice. This statement shall state in contrasting color or distinctive type that, in accordance with the investment experience of the separate account, the cash values and the variable death benefit may increase or decrease, and shall prominently identify any value described which may be recomputed before the next statement required by this section. If the policy guarantees that the variable death benefit on the next policy anniversary date will not be less than the variable death benefit specified in the statement, the statement shall be modified to indicate this. For flexible premium policies, the report required by this paragraph shall:
(1) Contain a reconciliation of the change since the previous report in cash value and cash surrender value, if different, because of payments made (less deductions for expense charges), withdrawals, investment experience, insurance charges, and any other changes made against the cash value; and
(2) Show the projected cash value and cash surrender value, if different, as of 1 year from the end of the period covered by the report assuming that:
(a) Planned periodic premiums, if any, are paid as scheduled;
(b) Guaranteed costs of insurance are deducted; and
(c)  The net return is equal to the guaranteed rate or, in the absence of a guaranteed rate, is not greater than zero. If the projected value is less than zero, a warning message shall be included that states that the policy may be in danger of terminating without value in the next 12 months unless additional premium is paid.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.10 - Foreign Companies

Current through Register Vol. 51, No. 14, July 12, 2024
If the law or regulation in the place of domicile of a foreign company provides a degree of protection to the policyholders and the public which is substantially similar to that provided by these regulations, the Commissioner may consider compliance with the law or regulation as compliance with these regulations.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.11 - Qualification of Producers for the Sale of Variable Life Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Qualification to Sell Variable Life Insurance.
(1) A person may not sell or offer for sale in this State any variable life insurance policy unless the person is a producer and has filed with the Commissioner, in a form satisfactory to the Commissioner, evidence that the person holds a license and other authorizations which may be required by any federal or State securities law for the solicitation, sale, or negotiation of variable life insurance.
(2) A person may not solicit, sell, or act or aid in any manner in the negotiation of a variable life insurance policy unless such person has been so qualified in accordance with the provisions of Insurance Article, §§
										10-105 and  10-109, Annotated Code of Maryland, and is licensed by the Commissioner to act as a producer with life and variable lines of authority.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.12 - Voting Rights

Current through Register Vol. 51, No. 14, July 12, 2024
To the extent an insurer deems it necessary to comply with any applicable state or federal laws, with respect to any separate account, including, without limitation, a separate account which is a management investment company or unit investment trust, the insurer may provide for persons having an interest therein appropriate voting and other rights and special procedures for the conduct of the business of the account, including without limitation special rights and procedures relating to investment policy, investment advisory services, selection of independent public accountants, and the selection of a committee, the members of which need not be otherwise affiliated with the company, to manage the business of the account.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.13 - Separability and Applicability of Other Regulations

Current through Register Vol. 51, No. 14, July 12, 2024
A. If any provision of this chapter or its application to any person or circumstance is held to be invalid, the remainder of the chapter and the application of the provision to other persons or circumstances is not affected.
B. The provisions of COMAR 31.09.04 and any other regulations promulgated by the Commissioner with reference to contracts on a variable basis or with reference to life insurance or the conduct of the business of life insurance shall apply to variable life insurance to the extent that the provisions of the other regulations are not in conflict with the requirements of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.03 - Industrial Life Insurance-Dividends Required › Section 31.09.03.01 - Dividends

Current through Register Vol. 51, No. 14, July 12, 2024
All policies of industrial life insurance heretofore or hereafter issued by any life insurance company authorized to do business in Maryland and operating as a mutual insurer; and all policies of industrial life insurance issued by any life insurance company operating as a mutual insurer at the time the policies were issued but which the insurer subsequently operates as a stock insurer; and all policies of industrial life insurance issued on or after January 1, 1941, by any stock insurer, which policies do not specifically state that they are nonparticipating or do not specifically state that they do not share in the surplus earnings of the company, shall have apportioned to them in the form of dividends payable on each anniversary date of each of the policies occurring on and after January 1, 1941, an equitable share of the policies in the surplus earnings of the insurer unless the insurer furnishes proof satisfactory to the Commissioner that the policies have not contributed to the surplus earnings of the insurer during the calendar year immediately preceding the policy anniversary. With the approval of the Commissioner, and if not in conflict with policy provisions, the insurer may elect that the dividends be credited on a specified date on each calendar year rather than on policy anniversaries.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.03 - Industrial Life Insurance-Dividends Required › Section 31.09.03.02 - Manner of Payment of Dividends

Current through Register Vol. 51, No. 14, July 12, 2024
The dividends shall be paid in the manner specified in the policy, or, if the policy does not specify a manner of payment, then the dividends shall, at the option of the insurer, or if the insurer does not make an election, then at the option of the policyholder, be:
A. Applied to provide paid-up additions to the policy;
B. Paid in cash;
C. Left to accumulate at a rate of interest not less than 2-1/2 percent, the accumulated dividends and interest to be payable on termination of the insurance if not previously credited to increase an operative nonforfeiture benefit under the policy; or
D. Applied to the payment of any premium payable under the policy or, if no further premiums are payable, the dividends shall be credited in accordance with one of the aforementioned methods.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.04 - Contracts on a Variable Basis › Section 31.09.04.01 - Authority and Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The issuance or delivery of contracts on a variable basis (hereinafter sometimes referred to as "contracts") in Maryland in any manner not in compliance with this chapter shall be deemed to be the transaction of insurance business hazardous to policyholders and the public, and contrary to the public interest.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.04 - Contracts on a Variable Basis › Section 31.09.04.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter the following terms have the meanings indicated.
B. Terms Defined.
(1) "Contracts on a variable basis" means annuity contracts, as defined in Insurance Article, §
										1-101(e), Annotated Code of Maryland, which provide for payments varying directly with the investment experience of a segregated asset account, hereinafter referred to as "variable contract account", as distinguished from "fixed annuity contracts". This definition does not include any of the forms of insurance prohibited by Insurance Article, §§
										16-112 and  27-207, Annotated Code of Maryland.
(2) "Fixed annuity contracts" or "guaranteed annuity contracts" means annuity contracts, as defined in Insurance Article, §
										1-101(e), Annotated Code of Maryland, which provide for payment of fixed dollar amounts guaranteed in the contract.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.04 - Contracts on a Variable Basis › Section 31.09.04.03 - Qualifications of Producers

Current through Register Vol. 51, No. 14, July 12, 2024
A. Qualification to Sell Variable Annuity Contracts.
(1) A person may not sell or offer for sale in this State any variable annuity contract unless the person is a producer and has filed with the Commissioner, in a form satisfactory to the Commissioner, evidence that the person holds a license and other authorizations which may be required by any federal or State securities law for the solicitation, sale, or negotiation of variable annuities.
(2) A person may not in this State solicit, sell, or act or aid in any manner in the negotiation of any variable contract unless the person has been so qualified in accordance with the provisions of Insurance Article, §§
										10-105 and  10-109, Annotated Code of Maryland, and is licensed by the Commissioner to act as a producer with life and variable lines of authority.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.04 - Contracts on a Variable Basis › Section 31.09.04.04 - Qualifications of Insurers

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer may issue the contracts provided it:
(1) Otherwise qualifies as a life insurance company;
(2) Has surplus assets or funds (within the meaning of Insurance Article, §
										4-105, Annotated Code of Maryland) as of the end of the preceding calendar year of at least $1,000,000; and
(3) Complies with one of the following:
(a) Is limited by its charter and bylaws exclusively to the sale of contracts on a variable basis, including additional benefits operating to safeguard the contract from lapse, or to provide a special surrender value, or special benefit, or annuity, in the event of total and permanent disability of the holder. An insurance company so limited may not be disqualified by reason of being a subsidiary of a stock or mutual insurance company transacting other lines of business.
(b) Has assets in excess of $50,000,000 and has been licensed for the sale of life insurance and annuities in this State for at least 10 consecutive years immediately before the date of issuance of the contracts on a variable basis.
(c) Has capital and surplus funds in excess of $10,000,000, and has been continuously and actively engaged in the sale of contracts on a variable basis in its state of domicile for at least 5 consecutive years immediately before the effective date of the authorization to issue the contracts in Maryland.
(d) By reason of its capital structure, surplus, amount of business in force, and plan of operations, in the opinion of the Commissioner, substantially conforms to the requirements of §A(3)(a), (b), or (c) of this regulation, or affords equivalent protection to contract holders; and provided further that the insurer shall have been specifically authorized by the Commissioner to issue the contracts after demonstrating to the Commissioner's satisfaction that it is qualified to do so.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.04 - Contracts on a Variable Basis › Section 31.09.04.05 - Filing, Approval of Forms

Current through Register Vol. 51, No. 14, July 12, 2024
A. A contract on a variable basis may not be issued or delivered in this State unless the form of the contract has been filed with and approved by the Commissioner and unless the form of application for the contract, and of any certificate to be used with the contract issued on a group basis, have been filed with and approved by the Commissioner.
B. The Commissioner shall disapprove or withdraw previous approval of the form of contract, application, or certificate for any of the reasons specified in Insurance Article, §
									12-205, Annotated Code of Maryland, or if:
(1) Sales of the contracts are being solicited by any means of advertising, communication, or dissemination of information which involves misleading or inadequate description of the provisions of the contract or which involves illustrations of benefits under the contracts based on projection into the future of past investment experience or on attempted predictions of future investment experience;
(2) The procedures to be followed by the insurer in determining the dollar amount of variable benefits or other contractual payments or values under the contract are inequitable or unreasonable;
(3) The expense, mortality, or investment increment factors stated in the contract are unreasonable; or
(4) The contracts do not conform to or are issued contrary to this chapter or any other regulations promulgated by the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.04 - Contracts on a Variable Basis › Section 31.09.04.06 - Attainment of Balance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Before the issuance of any individual contract on a variable basis, the insurer shall reasonably satisfy itself that the total amounts being applied and proposed to be applied to provide the prospective annuitant with income on a variable basis will not substantially exceed the amount which would be required to purchase the income in a predetermined dollar amount which the annuitant can reasonably expect to receive.
B. In determining the reasonably expectable fixed dollar income, the insurer may consider, alone or in combination, any direct source, such as a pension, annuity, Social Security benefit, or trust fund, as well as any indirect source, such as an asset having a principal amount expressed in fixed dollars and capable of being used to produce a fixed dollar income, as, for example bonds, mortgages or life insurance policies.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to:
A. Regulate the activities of insurers and insurance producers with respect to the replacement of existing life insurance and annuities; and
B. Protect the interests of life insurance and annuity purchasers by establishing minimum standards of conduct to be observed in replacement or financed purchase transactions by:
(1) Ensuring that purchasers receive information to make a decision in the purchasers' own best interests;
(2) Reducing the opportunity for misrepresentation and incomplete disclosure; and
(3) Establishing penalties for failure to comply with the requirements of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. "Direct Solicitation" Defined. In this regulation, the term "direct solicitation" does not include any group meeting:
(1) Held by an insurance producer solely for the purpose of educating individuals about or enrolling individuals in a plan or arrangement; or
Initiated by an individual employee or group member, assisting with the selection of investment options offered by a single insurer in connection with enrolling that individual employee or group member.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Direct-response solicitation" means a solicitation made:
(a) Through a sponsoring or endorsing entity; or
(b) Individually solely by mail, telephone, internet, or other mass communication medium.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.04 - Duties of Insurance Producer

Current through Register Vol. 51, No. 14, July 12, 2024
A. Signed Statement. An insurance producer who initiates an application for a life insurance policy or annuity contract shall submit to the insurer, with or as part of the application, a statement signed by both the applicant and the insurance producer as to whether the applicant has any existing life insurance policy or existing annuity contract.
B. Applicant Without Existing Life Insurance Policy or Existing Annuity Contract. If the applicant does not have an existing life insurance policy or existing annuity contract, the insurance producer's duties with respect to replacement are complete upon the fulfillment of the requirement in §A of this regulation.
C. Applicant With Existing Life Insurance Policy or Existing Annuity Contract.
(1) If the applicant has an existing life insurance policy or existing annuity contract, the insurance producer shall present and, unless declined, read to the applicant, not later than at the time of taking the application, a notice regarding replacement in the form contained in Regulation .10 of this chapter or other substantially similar notice approved by the Commissioner.
(2) Notwithstanding §C(1) of this regulation, approval is not required if amendments to the notice are limited to the omission of references not applicable to the product being sold or replaced.
(3) The notice shall be signed by both the applicant and the insurance producer attesting that the notice has been:
(a) Read aloud by the insurance producer or that the applicant did not wish the notice to be read aloud; and
(b) Left with the applicant.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.05 - Duties of Insurers that Use Insurance Producers

Current through Register Vol. 51, No. 14, July 12, 2024
A. System of Supervision and Control.
(1) An insurer shall maintain a system of supervision and control to ensure compliance with the requirements of this chapter that includes, at a minimum, procedures to:
(a) Inform its insurance producers of the requirements of this regulation and incorporate the requirements of this regulation into all relevant insurance-producer training manuals prepared by the insurer;
(b) Provide to each insurance producer a written statement of the insurer's position with respect to the acceptability of replacements that provides guidance to its insurance producer as to the appropriateness of these transactions;
(c) Review the appropriateness of each replacement transaction that the insurance producer does not indicate is in accord with §A(1)(b) of this regulation;
(d) Confirm that the requirements of this regulation have been met; and
(e) Detect transactions that are replacements of existing life insurance policies or existing annuity contracts by the existing insurer, but that have not been reported as replacements by the applicant or insurance producer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.06 - Duties of Replacing Insurers that Use Insurance Producers

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General. If a replacement is involved in a transaction, the replacing insurer shall:
(1) Verify that the required forms are received and are in compliance with this chapter;
(2) Notify any other existing insurer that may be affected by the proposed replacement within 5 business days after:
(a) Receipt of a completed application indicating replacement at the home office of the replacing insurer; or
(b) A replacement is identified, if not indicated on the application;
(3) Mail to an existing insurer a copy of the available illustration or life insurance policy summary for the proposed life insurance policy or available disclosure document for the proposed annuity contract within 5 business days after a request from the existing insurer;
(4) Be able to produce copies of the notification regarding replacement required by Regulation .04C of this chapter, indexed by insurance producer, for at least 5 years or until the next regular market conduct examination by the insurance department of an insurer's state of domicile, whichever is later; and
(5) Provide to the owner of the life insurance policy or annuity contract notice of the right to return the life insurance policy or annuity contract within 30 days after the delivery of the life insurance policy or annuity contract and receive:
(a) An unconditional full refund of all premiums or considerations paid on the life insurance policy or annuity contract, including any life insurance policy fees or charges; or
(b) In the case of a variable life insurance policy or variable annuity contract, a payment of the account value provided under the variable life insurance policy or variable annuity contract, including the fees and other charges deducted from the gross premiums or considerations or imposed under the variable life insurance policy or variable annuity contract.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.05 - Replacement of Life Insurance and Annuities › Section 31.09.05.07 - Duties of Existing Insurer

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General. For replacement transactions, the existing insurer shall:
(1) Retain and be able to produce all replacement notifications received, indexed by replacing insurer, for at least 5 years or until the conclusion of the next regular market conduct examination conducted by the insurance department of the insurer's state of domicile, whichever is later; and
(2) Within 5 business days after receipt of a request from an owner of a life insurance policy or annuity contract, send a letter to the owner of the life insurance policy or annuity contract of the right to receive information regarding the existing life insurance policy or annuity contract values including, if available, an in-force illustration, or life insurance policy summary if an in-force illustration cannot be produced within 5 business days after receipt of a notice that an existing life insurance policy or annuity contract is being replaced.