reglab/statecodes huggingface dataset:
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 31.09.05.08 - Duties of Insurers with Respect to Direct Response Solicitations

Current through Register Vol. 51, No. 14, July 12, 2024
A. Inquiry Regarding Intent. For an application initiated as a result of a direct response solicitation, the insurer shall require, with or as part of each completed application for a life insurance policy or annuity contract, a statement asking whether the applicant, by applying for the proposed life insurance policy or annuity contract, intends to replace, discontinue, or change an existing life insurance policy or existing annuity contract.
B. Duties of Insurer if Replacement or Change Is Not Intended. If the applicant indicates a replacement or change is not intended or if the applicant fails to respond to the statement, the insurer shall send the applicant, with the life insurance policy or annuity contract, the notice regarding replacement in Regulation .11 of this chapter, or other substantially similar notice approved by the Commissioner.
C. Duties of Insurer if Insurer Proposes Replacement or if Replacement Intended.
(1) If an insurer has proposed a replacement or if the applicant indicates a replacement is intended, and the insurer continues with the replacement, the insurer shall:
(a) Provide an applicant or prospective applicant with the life insurance policy or annuity contract a notice, as described in Regulation .12 of this chapter, or other substantially similar notice approved by the Commissioner; and
(b) Comply with the requirements of Regulation .06A(2) and (3) of this chapter, if the applicant furnishes the names of the existing insurers, and the requirements of Regulation .06A(4) and (5) and C 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 31.09.05.09 - Violations and Penalties

Current through Register Vol. 51, No. 14, July 12, 2024
A. Prohibition on Twisting. A failure to comply with this chapter is a violation of Insurance Article, §
									27-213, Annotated Code of Maryland, including:
(1) Deceptive or misleading information set forth in sales material;
(2) Failing to ask the applicant, in completing the application, the pertinent questions regarding the possibility of financing or replacement;
(3) Intentional incorrect recording of an answer;
(4) Advising an applicant to respond negatively to any question regarding replacement in order to prevent notice to the existing insurer; or
(5) Advising the owner of a life insurance policy or annuity contract to write directly to the insurer in such a way as to attempt to obscure the identity of the replacing insurance producer or insurer.
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 31.09.05.11 - Replacement Form B

Current through Register Vol. 51, No. 14, July 12, 2024
Are you thinking about buying a new life insurance policy or annuity and discontinuing or changing an existing one If you are, your decision could be a good one-or a mistake. You will not know for sure unless you make a careful comparison of your existing benefits and the proposed life insurance policy or annuity contract's benefits.
Make sure you understand the facts. You should ask the company or insurance producer that sold you your existing life insurance policy or annuity contract to give you information about it.
Hear both sides before you decide. This way you can be sure you are making a decision that is in your best interest.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.06 - Notice of Nonforfeiture Provisions in Lapsed Life Policies › Section 31.09.06.01 - Notice Requirement

Current through Register Vol. 51, No. 14, July 12, 2024
For any industrial or ordinary policy of insurance on the life of a resident of this State issued by any life insurance company or fraternal benefit society operating in Maryland, when the policy has a cash, paid-up, or extended insurance or other equity at the time of lapse and when none of these equities is automatically granted by the policy without application by the insured, upon lapse of the policy, written notice shall be mailed to the last known address of the insured within not less than 30 days before the expiry of the period within which the insured may apply for the equity value. This notice shall state the nature of the equity to which the insured is entitled and the date before which application for the equity is required to be made.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.01 - Applicability

Current through Register Vol. 51, No. 14, July 12, 2024
A. This chapter is applicable to annuity agreements issued to donors who are Maryland residents, under a special permit in accordance with Insurance Article, §
									16-114, Annotated Code of Maryland.
B. This chapter is applicable to any charitable gift annuity issued to a Maryland resident after the effective date of these regulations.
C. This chapter is applicable to organizations in or outside Maryland if the organization solicits annuity agreements in Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.02 - 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) "Commissioner" means the Insurance Commissioner of Maryland.
(2) "Organization" means every educational or religious organization, hospital, or community foundation authorized to issue annuities under a permit issued in accordance with Insurance Article, §
										16-114(b), Annotated Code of Maryland.
(3) "Qualified actuary" means an individual who is a member in good standing of the American Academy of Actuaries and is qualified to sign statements of actuarial opinion in accordance with the American Academy of Actuaries' standards.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.03 - Required Reserves

Current through Register Vol. 51, No. 14, July 12, 2024
A. The organization shall maintain assets at least equal to the sum of the reserves on its outstanding annuity agreements.
B. The reserves on the outstanding annuity agreements shall be consistent with the assumptions underlying the rates adopted by the American Council on Gift Annuities which are in effect at the time of issuance of the gift annuity.
C. In determining the appropriate reserves, a deduction shall be made for all or any portion of an annuity risk which is reinsured by an authorized insurer or accredited reinsurer.
D. As part of the organization's annual audit report, the organization shall submit a statement by a certified public accountant or qualified actuary verifying the existence of adequate reserves among the organization's assets.
E. The statement required under §D of this regulation may be incorporated into a certified public accountant's annual audit report.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.04 - Investment Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. The reserve assets shall be segregated.
B. The segregated reserve assets shall be invested in the same manner and subject to the same standards as are applicable under Estates and Trust Article, §15-402, Annotated Code of Maryland.
C. The general assets of the organization shall be liable for annuity agreements to the extent that the segregated fund is inadequate.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.05 - Disclosure Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Before accepting consideration for an annuity agreement the organization shall obtain separate signed statements from a prospective donor acknowledging that the prospective donor has been informed that:
(1) Payments made under charitable gift annuities are backed solely by the full faith and credit of the organization; and
(2) Payments made under charitable gift annuities are not insured or otherwise guaranteed by any government entity.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.06 - Filing Requirements for Special Permits

Current through Register Vol. 51, No. 14, July 12, 2024
The following material shall be submitted by an organization applying for a special permit to issue charitable gift annuities:
A. Proof of exemption under §501 of the Internal Revenue Code;
B. Description of the organization's activities and number of years of active operation in this State;
C. Copy of the most recent independently audited financial statement;
D. Payout rates proposed to be provided under the charitable immediate and deferred gift annuity agreements;
E. Description of the proposed investment of contributed funds;
F. Copy of the organization's bylaws;
G. Copy of the statement required by Regulation .05A of this chapter;
H. Copy of the organization's forms used as charitable gift annuity contracts;
I. Copies of any solicitation material or descriptive literature proposed to be used with charitable gift annuities; and
J. Other material requested by the Commissioner in order to determine that the applicant is an organization which is eligible for the special permit in accordance with Insurance Article, §
									16-114(b), Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.07 - Charitable Gift Annuities › Section 31.09.07.07 - Withdrawal of Permit

Current through Register Vol. 51, No. 14, July 12, 2024
The permit issued to an organization may be withdrawn by the Commissioner upon a finding that the organization failed to comply with the standards established by this chapter after an appropriate notice to and opportunity for the organization to conform to the standards set forth.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to regulate the issuance of group annuity contracts with the objective of providing that they not be issued on an impracticable basis or in a manner which may be hazardous to policyholders and the public.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter is applicable to all group annuity contracts whether issued on a fixed or a variable basis or on any basis providing a combination of both fixed and variable benefits.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.03 - Exceptions

Current through Register Vol. 51, No. 14, July 12, 2024
A. These regulations do not apply to:
(1) An annuity contract issued on an individual basis providing annuity benefits to individual or joint owners and providing further annuity benefits to one or more other individuals on the death of the original annuitant or joint annuitants;
(2) An annuity contract issued on an individual basis to provide annuity benefits to one or more persons on the death of a named individual;
(3) Annuity benefits provided as settlement options under individual life insurance policies; or
(4) Annuity benefits provided as settlement options under group policies of whole life insurance.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.04 - Definition

Current through Register Vol. 51, No. 14, July 12, 2024
"Group annuity" means a contract:
A. Purporting to provide annuity benefits to more than one individual;
B. Issued to:
(1) An employer or two or more employers in the same industry;
(2) An association of employers which has been in existence for at least 5 years, unless the Commissioner expressly waives the 5-year requirement;
(3) A labor union;
(4) An association of labor unions;
(5) An association composed of one or more labor unions and one or more employers;
(6) An association of persons having a common calling, occupation, or profession, which association was organized and maintained in good faith for purposes other than obtaining annuities and which has been in existence for at least 5 years, unless the Commissioner expressly waives the 5-year requirement;
(7) One or more departments of the federal government or of a state government or their subdivisions;
(8) An association of persons employed in one or more departments of the federal government or of a state government or their subdivisions which association was organized and maintained in good faith for purposes other than obtaining annuities and which has been in existence for at least 5 years, unless the Commissioner expressly waives the 5-year requirement;
(9) A college or university;
(10) An association of persons employed in a college or university, which association was organized and maintained in good faith for purposes other than obtaining annuities and which has been in existence for at least 5 years, unless the Commissioner expressly waives the 5-year requirement;
(11) An association of alumni of a college or university, which association was organized and maintained in good faith for purposes other than obtaining annuities and which has been in existence for at least 5 years, unless the Commissioner expressly waives the 5-year requirement; or
(12) The trustees of a:
(a) Fund established by an entity referred to in §B(1)-----(11) of this regulation; or
(b) Trust which permits individuals for whom contributions are made to individual retirement annuities or similar programs for which favorable federal income tax treatment exists under §403b or 408b of the Internal Revenue Code of 1954; and
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.05 - Employees

Current through Register Vol. 51, No. 14, July 12, 2024
In addition to those persons traditionally considered to be employees, employees may include:
A. If the employer is an individual proprietor or partnership, the proprietor or the partner;
B. If the employer is a corporation, the directors of the corporation;
C. If the business of the employer and any affiliated corporations, proprietorships, or partnerships is under common control, the employees of one or more affiliated corporations, proprietorships, or partnerships;
D. Independent contractors under contract to the employer and employees of the independent contractor;
E. Retired and terminated employees; and
F. Employees of a trustee under a trust referred to in Regulation .04B(12) of this chapter if their principal duties are connected with the trusteeship.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.06 - Members

Current through Register Vol. 51, No. 14, July 12, 2024
Members may, but need not, include:
A. Employees of a union or association;
B. Members of a union or association who have retired;
C. Employees of the members of an eligible association; or
D. Employees of a trustee under a trust referred to in Regulation .04B(12) of this chapter if their principal duties are connected with the trusteeship.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.08 - Group Annuity Contracts › Section 31.09.08.07 - Eligible Groups

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer may not deliver in this State a contract purporting to provide annuity benefits to more than one individual unless the contract conforms to the definition of a group annuity contract contained in Regulation .04 of this chapter.
B. If a contract providing annuity benefits to more than one individual is delivered in this State before the effective date of these regulations, an insurer may not include additional annuitants under the contract if the contract does not conform to the definition of a group annuity contract contained in Regulation .04 of this chapter.
C. Except as provided under §D of this regulation, an insurer may not include any resident of Maryland under any contract delivered in another jurisdiction which purports to provide annuity benefits to more than one individual if the contract does not conform to the definition of a group annuity contract contained in Regulation .04 of this chapter.
D. An insurer may include a resident of Maryland under a contract delivered in another jurisdiction which purports to provide annuity benefits to more than one individual if both of the following requirements are satisfied:
(1) A finding by the Commissioner that the type of group to be covered is the subject of an approval from the Commissioner for the solicitation of policies issued in another jurisdiction under Insurance Article, §
										15-310, Annotated Code of Maryland, in the case of group health insurance, or Insurance Article, §
										17-101(c), Annotated Code of Maryland, in the case of group life insurance; and
(2) The group annuity contract contains a nonforfeiture provision or provisions which in the opinion of the Commissioner is equitable to the annuitants.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to provide rules for life insurance policy illustrations that will protect consumers and foster consumer education. The chapter provides illustration formats, prescribes standards to be followed when illustrations are used, and specifies the disclosures that are required in connection with illustrations. The goals of this chapter are 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 can be understood by a typical person within the segment of the public to which the illustration is directed.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.02 - Applicability and Scope

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter applies to all group and individual life insurance policies and certificates except:
A. Variable life insurance;
B. Individual and group annuity contracts;
C. Credit life insurance; or
D. Life insurance policies with no illustrated death benefits on any individual exceeding $10,000.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.04 - Incorporation by Reference

Current through Register Vol. 51, No. 14, July 12, 2024
The Actuarial Standard of Practice No. 24 Compliance with the NAIC Life Insurance Illustrations Model Regulation (Adopted by the Actuarial Standards Board, December 1995) is incorporated by reference.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.05 - Policies To Be Illustrated

Current through Register Vol. 51, No. 14, July 12, 2024
A. Each insurer marketing policies to which this chapter 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 this chapter, the insurer shall identify in writing those forms and whether or not an illustration will be used with the forms. For policy forms filed after the effective date of this chapter, the identification shall be made at the time of filing. Any previous identification may be changed by notice to the Commissioner.
B. Except as required by COMAR 31.09.05.07B(2)  and .09A, if the insurer identifies a policy form as one to be marketed without an illustration, any use of an illustration for a policy using that form before the first policy anniversary is prohibited.
C. 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 this chapter 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 to 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.
D. Potential enrollees of non-term group life subject to this chapter 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 nonguaranteed basis appropriate to the group and the coverage. This quotation is not considered an illustration for purposes of this chapter, 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 Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.06 - General Rules and Prohibitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. An illustration used in the sale of a life insurance policy shall:
(1) Satisfy the applicable requirements of this chapter;
(2) Be clearly labeled "life insurance illustration"; and
(3) Contain the following basic information:
(a) Name of insurer,
(b) Name and business address of the producer or insurer's authorized representative, if any,
(c) Name, age, and sex of the proposed insured, except where a composite illustration is permitted under this chapter,
(d) Underwriting or rating classification upon which the illustration is based,
(e) Generic name of the policy, the company product name, if different, and the form number,
(f) Initial death benefit, and
(g) Dividend option election or application of nonguaranteed elements, if applicable.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.08 - Standards for Supplemental Illustrations

Current through Register Vol. 51, No. 14, July 12, 2024
A. A supplemental illustration may be provided if:
(1) It is appended to, accompanied by, or preceded by a basic illustration that complies with this chapter;
(2) The nonguaranteed elements shown are not more favorable to the policy owner than the corresponding elements based on the scale used in the basic illustration;
(3) It contains the same statement required of a basic illustration that nonguaranteed elements are not guaranteed; and
(4) For a policy that:
(a) Has a contract premium, the contract premium underlying the supplemental illustration is equal to the contract premium shown in the basic illustration, or
(b) Does not require a contract premium, the premium outlay underlying the supplemental illustration is equal to the premium outlay shown in the basic illustration.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.09 - Delivery of Illustration and Record Retention

Current through Register Vol. 51, No. 14, July 12, 2024
A. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this chapter, shall be:
(1) Submitted to the insurer at the time of policy application; and
(2) Provided to the applicant.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.10 - Annual Report; Notice to Policy Owners

Current through Register Vol. 51, No. 14, July 12, 2024
A. 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:
(1) For universal life policies, the report shall include the following:
(a) The beginning and end date of the current report period;
(b) The policy value at the end of the previous report period and at the end of the current report period;
(c) The total amounts that have been credited or debited to the policy value during the current report period, identifying each by type, such as interest, mortality, expense, and riders;
(d) The current death benefit at the end of the current report period on each life covered by the policy;
(e) The net cash surrender value of the policy as of the end of the current report period;
(f) The amount of outstanding loans, if any, as of the end of the current report period; and
(g) One of the following:
(i) 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
(ii) 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; or
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.11 - Annual Certifications

Current through Register Vol. 51, No. 14, July 12, 2024
A. The board of directors of each insurer shall appoint one or more illustration actuaries.
B. The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice No. 24 Compliance with the NAIC Life Insurance Illustrations Model Regulations, promulgated by the Actuarial Standards Board, and that the illustrated scales used in insurer-authorized illustrations meet the requirements of this chapter.
C. The illustration actuary:
(1) Shall be a member in good standing of the American Academy of Actuaries;
(2) Shall be familiar with the standard of practice regarding life insurance policy illustrations;
(3) May not have been found by the Commissioner, following appropriate notice and hearing to have:
(a) Violated any provision of, or any obligation imposed by, the insurance law, or other law, in the course of dealings as an illustration actuary,
(b) Been found guilty of fraudulent or dishonest practices,
(c) Demonstrated incompetence, lack of cooperation, or untrustworthiness to act as an illustration actuary, or
(d) Resigned or been removed as an illustration actuary within the past 5 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;
(4) May not fail to notify the Commissioner of any action taken by a commissioner of another state similar to that under §C(3) of this regulation;
(5) Shall disclose in the annual certification whether, since the last certification, a currently payable scale applicable for business issued within the previous 5 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; and
(6) Shall disclose in the annual certification one of the following methods used to allocate overhead expenses for all illustrations:
(a) Fully allocated expenses,
(b) Marginal expenses, or
(c) A generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.12 - Penalties

Current through Register Vol. 51, No. 14, July 12, 2024
In addition to any other penalties provided by the laws of this State, an insurer or producer that violates a requirement of this chapter is guilty of a violation of Insurance Article, 27-202 and 27-203, Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.09 - Life Insurance Illustrations › Section 31.09.09.13 - Separability

Current through Register Vol. 51, No. 14, July 12, 2024
If any provision of this chapter or its application to any person or circumstance is for any reason held to be invalid by any court of law, the remainder of the chapter and its application to other persons or circumstances are not affected.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.10 - Separate Account Investments under Funding Agreements › Section 31.09.10.01 - 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) "Funding agreement" means a contract described in Insurance Article, §
										16-113, Annotated Code of Maryland, whereby an insurer may accept and accumulate funds and make one or more payments at future dates in amounts that are not based on mortality or morbidity contingencies.
(2) "Separate account" means an account:
(a) That is segregated from, and maintained separately from, an insurer's general account; and
(b) To which amounts paid to a Maryland-domiciled insurer under a funding agreement are allocated, as authorized by Insurance Article, §
											16-113, Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.10 - Separate Account Investments under Funding Agreements › Section 31.09.10.02 - Plan of Operation Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. A Maryland-domiciled insurer may not issue a funding agreement for which a separate account will be used unless prior to delivery or issuance for delivery in the State, the form of the contract and the plan of operation have been filed with and approved by the Commissioner.
B. A Maryland-domiciled insurer shall include in its plan of operation for a funding agreement for which a separate account will be used a statement of investment policy for the separate account and any supplemental account, including:
(1) Requirements for diversification, maturity, type, and quality of assets; and
(2) As applicable, target duration for matching funding agreement liabilities or the degree to which the investment policy is likely to match the performance of an interest rate series or index on which the funding agreement is based.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.10 - Separate Account Investments under Funding Agreements › Section 31.09.10.03 - Investment Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application of Insurance Article, §
									5-511, Annotated Code of Maryland.
(1) Subject to §A(2) of this regulation, and Insurance Article, §
										16-113(d)(3), Annotated Code of Maryland, amounts allocated to a separate account and any resulting accumulations shall be invested and reinvested in accordance with the classes of investments, and the limitations on classes of investments, set forth in Insurance Article, §
										5-511, Annotated Code of Maryland.
(2) For the purpose of applying Insurance Article, §
										5-511, Annotated Code of Maryland, pursuant to §A(1) of this regulation, separate account assets shall be treated as admitted assets and be subject to the requirements and limitations of Insurance Article, §
										5-511, Annotated Code of Maryland, that apply to admitted assets.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.11 - Viaticals › Section 31.09.11.01 - Verification of Coverage for Life Insurance Policies

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer shall respond to a request for verification of coverage submitted by a viatical settlement provider or a viatical settlement broker within 30 days after the request is received.
B. The request by the viatical settlement provider or viatical settlement broker shall include all items required by Insurance Article, §
									8-610.1(a), Annotated Code of Maryland.
C. An insurer may charge a fee as set forth in Insurance Article, §
									8-610.1(b), Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.11 - Viaticals › Section 31.09.11.02 - Form

Current through Register Vol. 51, No. 14, July 12, 2024
A. The "Verification of Coverage for Life Insurance Policies" form adopted by the Commissioner under §B of this regulation shall be used.
B. The form required in §A of this regulation shall read as follows:
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Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
A. The purpose of this chapter is to require producers to act in the best interest of the consumer when making a recommendation of an annuity and to require insurers to establish and maintain a system to supervise recommendations so that the insurance needs and financial objectives of consumers, at the time of the transaction, are effectively addressed.
B. Nothing provided in this chapter shall be construed to create or imply a private cause of action for a violation of this chapter or to subject a producer to civil liability under the best interest standard of care outlined in Regulation .04 of this chapter or under standards governing the conduct of a fiduciary or a fiduciary relationship.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General. This chapter applies to any sale or recommendation of an annuity.
B. Exceptions. Unless otherwise specifically included, this chapter does not apply to transactions involving:
(1) Direct response solicitations if there is no recommendation based on information collected from the consumer pursuant to this regulation;
(2) Contracts used to fund:
(a) An employee pension or welfare benefit plan that is covered by the Employee Retirement and Income Security Act;
(b) A plan described by 26 U.S.C. §§
												401(a), 401(k), 403(b), 408(k), or 408(p) if established or maintained by an employer;
(c) A government or church plan defined in 26 U.S.C. §
												414, a government or church welfare benefit plan, or a deferred compensation plan of a state or local government or tax-exempt organization under 26 U.S.C. §
												457; or
(d) A nonqualified deferred compensation arrangement established or maintained by an employer or plan sponsor;
(3) Settlements of or assumptions of liabilities associated with personal injury litigation or any dispute or claim resolution process; or
(4) Formal prepaid funeral contracts.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.04 - Best Interest Obligations

Current through Register Vol. 51, No. 14, July 12, 2024
A. The requirements under this regulation do not create a fiduciary obligation or relationship and only create a regulatory obligation as established in this chapter.
B. A producer, when making a recommendation of an annuity, shall act in the best interest of the consumer under the circumstances known by the producer at the time the recommendation is made, without placing the producer's or the insurer's financial interest ahead of the consumer's interest.
C. A producer is considered to be acting in the best interest of the consumer if the producer satisfies the obligations described in §§D-G of this regulation.
D. Care Obligation.
(1) The producer, in making a recommendation, shall exercise reasonable diligence, care, and skill to:
(a) Know the consumer's financial situation, insurance needs, and financial objectives;
(b) Understand the available recommendation options after making a reasonable inquiry into options available to the producer;
(c) Have a reasonable basis to believe the recommended option effectively addresses the consumer's financial situation, insurance needs, and financial objectives over the life of the product, as evaluated in light of the consumer profile information; and
(d) Communicate the basis or bases of the recommendation.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.06 - Prohibited Practices

Current through Register Vol. 51, No. 14, July 12, 2024
A producer or insurer may not dissuade or attempt to dissuade a consumer from:
A. Truthfully responding to an insurer's request for confirmation of the consumer profile information;
B. Filing a complaint; or
C. Cooperating with the investigation of a complaint.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.07 - Safe Harbor

Current through Register Vol. 51, No. 14, July 12, 2024
A. Recommendations and sales of annuities made in compliance with comparable standards shall satisfy the requirements under this chapter.
B. This regulation applies to all recommendations and sales of annuities made by financial professionals in compliance with business rules, controls, and procedures that satisfy a comparable standard even if such standard would not otherwise apply to the product or recommendation at issue.
C. Nothing in this regulation shall limit the Commissioner's ability to investigate and enforce the provisions of this chapter.
D. Nothing in §A of this regulation shall limit the insurer's obligation to comply with Regulation .05A of this chapter, although the insurer may base its analysis on information received from either the financial professional or the entity supervising the financial professional.
E. For §A of this regulation to apply, an insurer shall:
(1) Monitor the relevant conduct of the financial professional seeking to rely on §A of this regulation or the entity responsible for supervising the financial professional, such as the financial professional's broker-dealer or an investment adviser registered under federal securities laws using information collected in the normal course of an insurer's business; and
(2) Provide to the entity responsible for supervising the financial professional seeking to rely on §A of this regulation, such as the financial professional's broker-dealer or investment adviser registered under federal securities laws, information and reports that are reasonably appropriate to assist such entity to maintain its supervision system.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.09 - Compliance and Penalties

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer is responsible for compliance with this chapter.
B. If a violation of this chapter occurs, because of either the action or the inaction of the insurer or its producer, the Commissioner may order:
(1) An insurer to take reasonably appropriate corrective action for any consumer harmed by the insurer's, or by its producer's, violation of this chapter;
(2) A general agency, independent agency, or a producer to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of this chapter; and
(3) Appropriate penalties and sanctions.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.10 - Record Keeping

Current through Register Vol. 51, No. 14, July 12, 2024
A. Insurers, general agents, independent agencies, and producers shall maintain or be able to make available to the Commissioner records of the information collected from the consumer and other information used in making the recommendations that were the basis for insurance transactions for 7 years after the insurance transaction is completed by the insurer.
B. An insurer is permitted, but is not required, to maintain documentation on behalf of a producer.
C. Records required to be maintained by this regulation may be maintained in paper, photographic, micro processed, magnetic, mechanical, or electronic media, or by any process that accurately reproduces the actual document, if the copy of the record is maintained in a manner that:
(1) Is clear and legible;
(2) Accurately reproduces the original document in its entirety, including any attachments to the document;
(3) Is capable of producing a clear and legible hard copy of the original document; and
(4) Preserves evidence of any signature contained on the document.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.11 - Producer Disclosure for Annuities Form

Current through Register Vol. 51, No. 14, July 12, 2024
The form to be used for providing the disclosure required by Regulation .04E(1) of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.12 - Consumer Refusal to Provide Information Form

Current through Register Vol. 51, No. 14, July 12, 2024
The form to be used for obtaining the consumer signed statement required by Regulation .04G(1)(b) of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.12 - Suitability in Annuity Transactions › Section 31.09.12.13 - Consumer Decision to Purchase Annuity Not Based on Recommendation Form

Current through Register Vol. 51, No. 14, July 12, 2024
The form to be used for obtaining the consumer signed statement required by Regulation .04G(1)(c) of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.13 - Military Sales Practices › Section 31.09.13.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
A. The purpose of this chapter 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.
B. Nothing in this chapter may be construed to create or imply 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 31.09.13 - Military Sales Practices › Section 31.09.13.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter applies 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 Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.13 - Military Sales Practices › Section 31.09.13.03 - Incorporation by Reference

Current through Register Vol. 51, No. 14, July 12, 2024
In this chapter, the following documents are incorporated by reference:
A.
									38 U.S.C. §
										1965 et seq. (2007);
B. Internal Revenue Code, 26 U.S.C. §
										501(c)(23) (2007);
C. Department of Defense DoD Instruction 1344.07-Personal Commercial Solicitation on DoD Installations (March 30, 2006);
D. Truth in Savings Act, 12 U.S.C. §
										4301 et seq. (2007), and the regulations promulgated under it; and
E.
									§ 10 of the "Military Personnel Financial Services Protection Act," Pub. L. No. 109-290, p.16.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 09 - LIFE INSURANCE AND ANNUITIES › Chapter 31.09.13 - Military Sales Practices › Section 31.09.13.04 - 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) Active Duty.
(a) "Active duty" means full-time duty in the active military service of the United States and includes members of the reserve component, National Guard and Reserve, while serving under published orders for active duty or full-time training.
(b) "Active duty" does not include members of the reserve component who are performing active duty or active duty for training under military calls or orders specifying periods of less than 31 calendar days.