North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 12 - LIFE AND HEALTH DIVISION › Section .0400 - LIFE: GENERAL NATURE › Section 12 .0435 - QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE

Current through Register Vol. 39, No. 2, July 15, 2024
The following requirements 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:
(1) Licensing and Approval to do Business in
				This State. An insurer shall not deliver or issue for delivery in this state
				any variable life insurance policy unless:
(a)
				The insurer is licensed or organized to do a life insurance business in this
				state;
(b) Either:
(i) The state of domicile of such insurer
				requires that permissible investments be substantially the same as provided in
				.0438(c) of this Section 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 .0438 of this Section for such separate accounts
				operated by insurers domiciled in this state; or
(ii) The insurer's investment policy, as
				described in the statement required to be filed under (2)(c) of this Rule
				conforms to .0438(c) of this Section, 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
				(2)(c) of this Rule, provide safeguards consistent with those provided under
				.0438(f) of this Section;
(c) The insurer has obtained the written
				approval of the commissioner for the issuance of variable life insurance
				policies in this state. The commissioner shall grant such written approval only
				after he has found that:
(i) The plan of
				operation for the issuance of variable life insurance policies is not
				unsound;
(ii) The general
				character, reputation, and experience of the management and those persons or
				firms proposed to supply consulting, investment, administrative, or custodial
				services to the insurer are such as to reasonably assure competent operation of
				the variable life insurance business of the insurer in this state;
				and
(iii) The present and
				foreseeable future financial condition of the insurer and its method of
				operation in connection with the issuance of such policies is not likely to
				render its operation hazardous to the public or its policyholders in this
				state. The commissioner shall consider, among other things:
(A) the history of operation and financial
				condition of the insurer;
(B) the
				qualification, 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;
(C) 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
(D) if the insurer is a subsidiary of, or is
				affiliated by common management or ownership with another company, its
				relationship to such other company and the degree to which the requesting
				insurer, as well as the other company, meet these standards.