New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 46 - SYNTHETIC GUARANTEED INVESTMENT CONTRACT FORMS › Section 11:4-46.3 - Form submission requirements

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In addition to complying with the requirements set forth in these rules, all synthetic guaranteed investment contract form submissions shall comply with all applicable requirements of N.J.A.C. 11:4-40.
(b) All synthetic guaranteed investment contract form submissions shall comply with the following requirements:
1. The submission shall include a plan of operation that meets the requirements set forth in 11:4-46.4. The plan of operation shall be annotated to correspond to the applicable requirements of 11:4-46.4, and shall be a separate document;
2. The submission shall include a contract form that meets the requirements set forth in 11:4-46.5. The contract shall be annotated to correspond to the applicable requirements of 11:4-46.5;
3. The submission shall include a statement identifying any requirements of 11:4-46.4 or 46.5 that the insurer considers inapplicable to its particular submission, together with a complete explanation of such inapplicability.
4. The extensive use of variable text bracketing in contract forms that permits variable text is prohibited. Such bracketing shall be minimal, and shall relate only to the names and identification of the parties to the contract or to identified parameters or scenarios as specified in any statement on variable text accompanying the contract form. Determination of the excessive use of such bracketing shall be within the sole discretion of the Department.
i. The use of variable bracketing in contract forms that permits either the omission of text or the inclusion of alternate text shall be permitted if the submission includes sufficient specimen examples showing all versions of variable text as is necessary for the Department to complete its review of the form;
5. Any revision to the plan of operation shall be submitted to the Department pursuant to this subsection at least 60 days prior to implementation. The insurer may utilize the new plan of operation provided the Department has not disapproved within the 60-day period pursuant to (b)5ii below the continued use of the previously-approved form.
i. The submission shall include a copy of the prior plan of operation with the revisions incorporated therein and annotated pursuant to (b)1 above. The revised portions of the plan of operation shall be highlighted or otherwise identified as new. The submission shall also include a certification that the remaining portions of the plan of operation are unaffected by the revision.
ii. Any revision to the contract form necessary to conform to the revised plan of operation shall be submitted to the Department for approval pursuant to this subsection. The Department reserves the right to prohibit the use of a previously-approved contract form with any revised plan of operation deemed incompatible therewith;
6. Any of the plan of operation requirements set forth 11:4-46.4 shall be waived upon request of the insurer if the state of domicile of the insurer has adopted rules that are substantially similar to these rules and has approved such plan of operation. Evidence of such approval shall be included in the submission; and
7. Any submission that fails to meet the requirements set forth in this section shall be considered incomplete, and shall be returned to the insurer for nonaction pursuant to 11:4-40.5(c).