Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.02 - Variable Life Insurance › Section 31.09.02.03 - Qualification of Insurer to Issue Variable Life Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. The requirements of this regulation are applicable to all insurers either seeking authority to issue variable life insurance in this State or which have authority to issue variable life insurance in this State.
B. Licensing and Approval to Do Business in This State. An insurer may not deliver or issue for delivery in this State any variable life insurance policy, unless the insurer is authorized to engage in the life insurance business in this State, and either:
(1) The state of domicile of the insurer requires that permissible investments be substantially the same as provided in Regulation .06C of this chapter and that changes in the investment policy of the variable life insurance separate account be regulated in a manner substantially similar to that required under Regulation .06 of this chapter for separate accounts operated by insurers domiciled in this State; or
(2) The insurer's investment policy, as described in the statement required to be filed under §C(3) of this regulation, conforms to Regulation .06C of this chapter and the Commissioner is satisfied that the procedures for changing the investment policy of a variable life insurance separate account as described in the statement required to be filed under §C(3) of this regulation provide safeguards consistent with those provided under Regulation .06F of this chapter, and the insurer has obtained the written approval of the Commissioner for the issuance of variable life insurance policies in this State. The Commissioner shall grant the written approval only after he has found that:
(a) The plan of operation for the issuance of variable life insurance policies is not unsound;
(b) The general character, reputation, and experience of the management and those persons or firms proposed to supply consulting, investment, administrative, or custodial services to the insurer are such as to reasonably assure competent operation of the variable life insurance business of the insurer in this State;
(c) The insurer has surplus in addition to that required under Insurance Article, §
											4-105, Annotated Code of Maryland, as of the end of the preceding calendar year of at least 5 million dollars; and
(d) The present and foreseeable future financial condition of the insurer and its method of operation in connection with the issuance of the policies is not likely to render its operation hazardous to the public or its policyholders in this State. The Commissioner shall consider, among other things:
(i) The history of operation and financial condition of the insurer; and
(ii) The qualifications, fitness, character, responsibility, reputation, and experience of the officers and directors and other management of the insurer and those persons or firms proposed to supply consulting, investment, administrative, or custodial services to the insurer;
(iii) The applicable law and regulations under which the insurer is authorized in its state of domicile to issue variable life insurance policies. The state of entry of an alien insurer shall be deemed its state of domicile for this purpose; and
(iv) If the insurer is a subsidiary of, or is affiliated by common management or ownership with another company, its relationship to the other company and the degree to which the requesting insurer, as well as the other company, meet these standards.