reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-03 - Policies to be illustrated

Current through Supplement No. 393, July, 2024
1. 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 January 1, 1997,
				the insurer shall identify in writing those forms and whether or not an
				illustration will be used with them. For policy forms filed after January 1,
				1997, the identification shall be made at the time of filing. Any previous
				identification may be changed by notice to the commissioner.
2. If the insurer identifies a policy form as
				one to be marketed without an illustration, any use of an illustration for any
				policy using that form prior to the first policy anniversary is prohibited.
3. 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 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.
4. Potential enrollees of nonterm group life
				subject to this chapter must be furnished a quotation with the enrollment
				materials. The quotation must 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 may not be considered an illustration for
				purposes of this chapter, but all information provided must be consistent with
				the illustrated scale. A basic illustration must be provided at delivery of the
				certificate to enrollees for nonterm 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 nonterm
				group life enrollee who requests it.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-04 - General rules and prohibitions

Current through Supplement No. 393, July, 2024
1. An
				illustration used in the sale of a life insurance policy must satisfy the
				applicable requirements of this chapter, be clearly labeled life insurance
				illustration, and contain the following basic information:
a. Name of insurer;
b. Name and business address of producer or
				insurer's authorized representative, if any;
c. Name, age, and sex of 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 policy, the company
				product name, if different, and form number;
f. Initial death benefit; and
g. Dividend option election or application of
				nonguaranteed elements, if applicable.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-06 - Standards for supplemental illustrations

Current through Supplement No. 393, July, 2024
1. A supplemental illustration may be
				provided as long as:
a. It is appended to,
				accompanied by, or preceded by a basic illustration that complies with this
				chapter;
b. 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;
c. It contains the same statement
				required of a basic illustration that nonguaranteed elements are not
				guaranteed; and
d. For a policy
				that has a contract premium, the contract premium underlying the supplemental
				illustration is equal to the contract premium shown in the basic illustration.
				For policies that do not require a contract premium, the premium outlay
				underlying the supplemental illustration must be equal to the premium outlay
				shown in the basic illustration.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-07 - Delivery of illustration and record retention

Current through Supplement No. 393, July, 2024
1.
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, must be submitted to
				  the insurer at the time of policy application. A copy also must be provided to
				  the applicant.
b. If the
				policy is issued other than as applied for, a revised basic illustration
				conforming to the policy as issued must be sent with the policy. The revised
				illustration must conform to the requirements of this chapter, be labeled
				"Revised Illustration" and must be signed and dated by the applicant or policy
				owner and producer or other authorized representative of the insurer no later
				than the time the policy is delivered. A copy must be provided to the insurer
				and the policy owner.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-08 - Annual report - Notice to policy owners

Current through Supplement No. 393, July, 2024
1. 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 must contain at
				least the following information:
a. For
				universal life policies, the report must include the following:
(1) The beginning and end date of the current
				report period;
(2) The policy
				value at the end of the previous report period and at the end of the current
				report period;
(3) The total
				amounts that have been credited or debited to the policy value during the
				current report period, identifying each by type (e.g., interest, mortality,
				expense, and riders);
(4) The
				current death benefit at the end of the current report period on each life
				covered by the policy;
(5) The net
				cash surrender value of the policy as of the end of the current report period;
(6) The amount of outstanding
				loans, if any, as of the end of the current report period; and
(7) 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 must be included in the report; or
(8) 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 must be included in the report.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-09 - Annual certifications

Current through Supplement No. 393, July, 2024
1. The board
				of directors of each insurer shall appoint one or more illustration actuaries.
2. The illustration actuary shall
				certify that the disciplined current scale used in illustrations is in
				conformity with the actuarial standard of practice for compliance with the
				national association of insurance commissioners model regulation on life
				insurance illustrations promulgated by the actuarial standards board, and that
				the illustrated scales used in insurer-authorized illustrations meet the
				requirements of this chapter.
3.
				The illustration actuary shall:
a. Be a
				member in good standing of the American academy of actuaries;
b. Be familiar with the standard of practice
				regarding life insurance policy illustrations;
c. Not have been found by the commissioner,
				following appropriate notice and hearing to have:
(1) Violated any provision of, or any
				obligation imposed by, the insurance law or other law in the course of the
				person's dealings as an illustration actuary;
(2) Been found guilty of fraudulent or
				dishonest practices;
(3)
				Demonstrated the person's incompetence, lack of cooperation, or
				untrustworthiness to act as an illustration actuary; or
(4) Resigned or been removed as an
				illustration actuary within the past five 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;
d. Not fail to notify the
				commissioner of any action taken by a commissioner of another state similar to
				that under subdivision c;
e.
				Disclose in the annual certification whether, since the last certification, a
				currently payable scale applicable for business issued within the previous five
				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. If nonguaranteed elements illustrated for new policies are not
				consistent with those illustrated for similar in force policies, this must be
				disclosed in the annual certification. If nonguaranteed elements illustrated
				for both new and in force policies are not consistent with the nonguaranteed
				elements actually being paid, charged, or credited to the same or similar
				forms, this must be disclosed in the annual certification; and
f. Disclose in the annual certification the
				method used to allocate overhead expenses for all illustrations:
(1) Fully allocated expenses;
(2) Marginal expenses; or
(3) A generally recognized expense table
				based on fully allocated expenses representing a significant portion of
				insurance companies and approved by the commissioner.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-01.1 - Life Insurance Illustrations Model Regulation › Section 45-04-01.1-10 - Effective date

Current through Supplement No. 393, July, 2024
This chapter applies to all life insurance policies or
				  certificates sold on or after January 1, 1997.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-33-02
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-01 - Applicability

Current through Supplement No. 393, July, 2024
This chapter is applicable to insurance companies, including
				  any fraternal benefit society which operates on a legal reserve basis,
				  delivering or issuing for delivery in this state variable contracts or
				  policies, as defined in subsections 16 and 18 of section
				  45-04-02-02.
General Authority:
NDCC 26.1-33-17, 26.1-34-11
Law Implemented:
NDCC 26.1-33-13,
				  26.1-34-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-03 - Qualification of insurance companies to issue variable annuity contracts

Current through Supplement No. 393, July, 2024
1. No company shall deliver or issue for
				delivery variable annuity contracts within this state unless:
a. It is licensed or organized to do a life
				insurance and annuity business in this state;
b. The commissioner is satisfied that neither
				its condition nor its method of operation in connection with the issuance of
				such contracts will render its operation hazardous to its policyholders or the
				public in this state. In this connection, the commissioner shall consider among
				other things:
(1) The history and financial
				condition of the company.
(2) The
				characters, responsibility, and fitness of the officers and directors of the
				company.
(3) The laws and
				regulations under which the company is authorized in the state of domicile to
				issue variable contracts.
(4) The
				adequacy of the company's program for the thorough training in variable
				contracts of all agents who shall be selling or soliciting for the sale of
				variable annuity contracts in this state.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-05 - Filing of variable annuity contracts

Current through Supplement No. 393, July, 2024
The filing requirements applicable to variable annuity
				  contracts shall, to the extent appropriate, be those filing requirements
				  otherwise applicable under existing laws and regulations of this state with
				  respect to the filing of annuity contract forms, both individual and group.
General Authority:
NDCC 26.1-33-17, 26.1-34-11
Law Implemented:
NDCC 26.1-33,
				  26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-06 - Variable benefits under variable annuity contracts

Current through Supplement No. 393, July, 2024
1. Any variable annuity contract providing
				benefits payable in variable amounts delivered or issued for delivery in this
				state shall contain a statement of the essential features of the procedures to
				be followed by the company in determining the dollar amount of such variable
				benefits. Any such contract, including a group contract and any certificate in
				evidence of variable benefits issued thereunder, shall state that such dollar
				amount will vary to reflect investment experience and shall contain on its
				first page a clear statement to the effect that the benefits thereunder are on
				a variable basis.
2. Illustrations
				of benefits payable under any variable annuity contract shall not include
				projections of past investment experience into the future or attempted
				predictions of future investment experience; provided, that nothing contained
				herein is intended to prohibit use of hypothetical assumed rates of return to
				illustrate possible levels of benefits.
3. Any variable annuity contract delivered or
				issued for delivery in this state shall define the investment increment factors
				to be used in computing the dollar amount of variable benefits or other
				variable contractual payments or values thereunder, and may guarantee that
				expense or mortality results shall not adversely affect such dollar amounts. In
				the case of an individual variable annuity contract under which expense or
				mortality results may adversely affect the dollar amount of benefits, the
				expense or mortality factors to be used (as aforesaid for the investment
				increment factors) shall be defined in the contract.
In computing the dollar amount of the first annuity payment,
				  payable on the annuity commencement date, under an individual variable annuity
				  contract:
a. The net annual
				investment increment assumption shall not exceed five percent per year, except
				with the approval of the commissioner; and
b. With respect to a contract under which the
				level of benefits may be adversely affected by future mortality results, the
				mortality assumption shall be based upon the Annuity Mortality Table for 1949,
				Ultimate, or any modification of such table not having a lower life expectancy
				at any age, or, if approved by the commissioner, some other table.
"Expense" as used in this subsection may exclude some or all
				  taxes, as specified in the contract.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-07 - Required report for variable annuity contracts

Current through Supplement No. 393, July, 2024
1. Any company issuing individual variable
				annuity contracts shall mail to the contract holder at least once in each
				contract year after the first at the contract holder's last address known to
				the company a statement or statements reporting the investments held in the
				separate account. The company shall submit annually to the commissioner a
				statement of the business of its separate account or accounts in such form as
				may be prescribed by the national association of insurance commissioners.
2. Any company issuing individual
				variable annuity contracts shall mail to the contract holder at least once in
				each contract year after the first at the contract holder's last address known
				to the company a statement reporting as of a date not more than four months
				previous to the date of mailing, in the case of an annuity contract under which
				payments have not yet commenced, (a) the number of accumulation units credited
				to such contract and the dollar value of each unit, or (b) the value of the
				contract holder's account.
General Authority:
NDCC 26.1-33-17, 26.1-34-11
Law Implemented:
NDCC 26.1-33,
				  26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-08 - Eligibility of agents to sell or solicit variable annuity contracts

Current through Supplement No. 393, July, 2024
1. No person shall be eligible to sell or to
				solicit for the sale of variable annuity contracts unless, prior to making any
				such sale or solicitation, the person shall have become licensed as a life
				insurance agent and shall have become licensed as a securities salesman under
				North Dakota law.
2. Any person,
				having been licensed as a securities salesman and being associated with the
				variable contract business, shall immediately report to the commissioner of
				insurance and the commissioner of securities (a) any suspension or revocation
				of the person's variable annuity contract agent's license or life insurance
				agent's license in any other jurisdiction, or (b) the imposition of any
				disciplinary action (including suspension of or expulsion from membership,
				denial or suspension or revocation of registration, or other adverse order or
				directive) upon the person by any self-regulatory securities association,
				securities exchange, or any governmental agency with jurisdiction over
				securities or contracts of a variable nature, or (c) any judgment or injunction
				entered against the person on the basis of conduct deemed to have involved
				fraud, deceit, misrepresentation, or violation of any insurance or securities
				law or regulation.
General Authority:
NDCC 26.1-33-17, 26.1-34-11
Law Implemented:
NDCC 26.1-33,
				  26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-17 - Separability

Current through Supplement No. 393, July, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of such provision to other persons
				  or circumstances shall not be affected thereby.
General Authority:
NDCC 26.1-33-17, 26.1-34-11
Law Implemented:
NDCC 26.1-33-17,
				  26.1-34-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-18 - Foreign and alien companies

Current through Supplement No. 393, July, 2024
If the laws and regulations in the place of domicile of a
				  foreign or alien company provide a degree of protection to the policyholders
				  and the public which is substantially equal to that provided by this chapter,
				  the commissioner, to the extent deemed appropriate by the commissioner in the
				  commissioner's discretion, may consider compliance with such laws and
				  regulations as compliance with this chapter.
General Authority:
NDCC 26.1-33, 26.1-34
Law Implemented:
NDCC 26.1-33-17, 26.1-34-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-03 - Interest Rates on Life Insurance Policy Loans › Section 45-04-03-01 - Purpose

Current through Supplement No. 393, July, 2024
The purpose of this chapter is to permit and set guidelines
				  for life insurers to include in life insurance policies issued after January 1,
				  1982, a provision for periodic adjustment of policy loan interest rates.
General Authority: NDCC 28-32
Law Implemented: NDCC
					 26.1-33-05
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-03 - Interest Rates on Life Insurance Policy Loans › Section 45-04-03-02 - Definitions

Current through Supplement No. 393, July, 2024
For purposes of this chapter, the "published monthly
				  average" means:
1. Moody's corporate bond yield average - monthly average
				  corporates as published by Moody's investors service, incorporated or any
				  successor thereto; or
2. In the event that Moody's corporate bond yield average -
				  monthly average corporates is no longer published, a substantially similar
				  average, established by regulation issued by the commissioner.
General Authority: NDCC 28-32
Law Implemented: NDCC
					 26.1-33-05
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-03 - Interest Rates on Life Insurance Policy Loans › Section 45-04-03-03 - Maximum rate of interest on policy loans

Current through Supplement No. 393, July, 2024
1. Policies issued on or after January 1,
				1982, shall provide for policy loan interest rates as follows:
a. A provision permitting a maximum interest
				rate of not more than eight percent per annum; or
b. A provision permitting an adjustable
				maximum interest rate established from time to time by the life insurer as
				permitted by law.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-03 - Interest Rates on Life Insurance Policy Loans › Section 45-04-03-04 - Applicability to existing policies

Current through Supplement No. 393, July, 2024
The provisions of this chapter shall not apply to any
				  insurance contract issued before January 1, 1982, unless the policyholder
				  agrees in writing to the applicability of such provisions.
General Authority: NDCC 28-32
Law Implemented: NDCC
					 26.1-33-05
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-02 - Qualification of insurer to issue variable life insurance

Current through Supplement No. 393, July, 2024
1.
Licensing and approval to do
				business in this state.
Any insurer may 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; and
b. 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 the commissioner has found that:
(1)
				The plan of operation for the issuance of variable life insurance policies is
				not unsound;
(2) 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
(3) 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
				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 service 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.
(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.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-03 - Insurance policy requirements

Current through Supplement No. 393, July, 2024
The commissioner will not approve any variable life
				  insurance form filed pursuant to this chapter unless it conforms to the
				  requirements of this section.
1.
Filing of variable life insurance policies.
All variable life
				insurance policies, and all riders, endorsements, applications, and other
				documents which are to be attached to and made part of the policy and which
				relate to the variable nature of the policy, must be filed with the
				commissioner and approved by the commissioner prior to delivery or issuance for
				delivery in this state.
a. The procedures and
				requirements for filing and approval are, to the extent appropriate and not
				inconsistent with this chapter, the same as those otherwise applicable to other
				life insurance policies.
b. 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.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-05 - Separate accounts

Current through Supplement No. 393, July, 2024
The following requirements apply to the establishment and
				  administration of variable life insurance separate accounts by any domestic
				  insurer
1.
Establishment and
				administration of separate accounts.
Any domestic insurer issuing
				variable life insurance shall establish one or more separate accounts pursuant
				to North Dakota Century Code sections 26.1-33-13 and 26.1-34-11.
a. If no law or other regulation provides for
				the custody of separate account assets and if such insurer is not the custodian
				of such separate account assets, all contracts for custody of such assets must
				be in writing and the commissioner may review and approve of both the terms of
				any such contract and the proposed custodian prior to the transfer of custody.
b. The insurer may not without the
				prior written approval of the commissioner employ in any material connection
				with the handling of separate account assets any person who:
(1) Within the last ten years has been
				convicted of any felony or misdemeanor arising out of such person's conduct
				involving embezzlement, fraudulent, conversion, or misappropriation
				offundsorsecuritiesor involving violation of
				18 U.S.C.
				1341,
				1342, or
				1343;
(2) Within the last ten years has been found
				by any state regulatory authority to have violated or has acknowledged
				violation of any provision of any state insurance law involving fraud, deceit,
				or knowing misrepresentation; or
(3) Within the last ten years has been found
				by federal or state regulatory authorities to have violated or has acknowledged
				violation of any provision of federal or state securities laws involving fraud,
				deceit, or knowing misrepresentation.
c. All persons with access to the cash,
				securities, or other assets of the separate account must be under bond in the
				amount of not less than a value indexed to the fidelity bonding recommendations
				stated in the financial condition examiners handbook published by the national
				association of insurance commissioners, 2009 edition, regarding personnel
				handling general account assets.
d. The assets of such separate accounts must
				be valued at least as often as variable benefits are determined but in any
				event at least monthly.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-06 - Information furnished to applicants

Current through Supplement No. 393, July, 2024
An insurer delivering or issuing for delivery in this state
				  any variable life insurance policy shall deliver to the applicant for the
				  policy, and obtain a written acknowledgment of receipt from such application
				  coincident with or prior to the execution of the application, the following
				  information. The requirements of this section are deemed to have been satisfied
				  to the extent that a disclosure containing information required by this section
				  is delivered in the form of a prospectus included in the requirements of the
				  Securities Act of 1933 and which was all information and reports required by
				  the Employee Retirement Income Security Act of 1974 if the policies are
				  exempted from the registration requirements of the Securities Act of 1933
				  pursuant to section 3(a)(2) thereof.
1. A summary explanation, in nontechnical
				terms, of the principal features of the policy, including a description of the
				manner in which the variable benefits will reflect the investment experience of
				the separate account and the factors which affect such variation. Such
				explanation must include notices of the provision required by paragraph 5 of
				subdivision a of subsection 3 and subdivision f of subsection 3 of section
				45-04-04-03.
2. A statement of the investment policy of
				the separate account, including:
a. A
				description of the investment objectives intended for the separate account and
				the principal types of investments intended to be made; and
b. Any restriction of limitations on the
				manner in which the operations of the separate account are intended to be
				conducted.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-07 - Applications

Current through Supplement No. 393, July, 2024
The application for a variable life insurance policy must
				  contain:
1. A prominent statement
				that the death benefit may be variable or fixed under specified conditions.
2. 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).
3. Questions designed to elicit information
				which enables the insurer to determine the suitability of variable life
				insurance for the applicant.
General Authority: NDCC 26.1-33-17, 26.1-34-11
Law Implemented: NDCC 26.1-33,
					 26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-09 - Foreign companies

Current through Supplement No. 393, July, 2024
If the law or regulation in the place of domicile of a
				  foreign company provides a degree of protection to the policyholder and the
				  public which is substantially similar to that provided by this chapter, the
				  commissioner to the extent deemed appropriate by the commissioner in the
				  commissioner's discretion, may consider compliance with such law or regulation
				  as compliance with this chapter.
General Authority: NDCC 26.1-33-17, 26.1-34-11
Law Implemented: NDCC 26.1-33,
					 26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-10 - Qualification of agents for the sale of variable life insurance

Current through Supplement No. 393, July, 2024
1.
Qualification to sell variable life
				insurance.
a. No person may sell or
				offer for sale in this state any variable life insurance policy unless such
				person is an agent and has filed with the commissioner, in a form satisfactory
				to the commissioner, evidence that such person holds any license or
				authorization which may be required for the solicitation or sale of variable
				life insurance and evidence that such person holds a license as a securities
				salesman under North Dakota law.
b. Any examination administered by the
				department for the purpose of determining the eligibility of any person for
				licensing as an agent shall, after June 1, 1984, include such questions
				concerning the history, purpose, regulation, and sale of variable life
				insurance as the commissioner deems appropriate.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-11 - Separability

Current through Supplement No. 393, July, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of such provision to other persons
				  or circumstances not affected thereby.
General Authority: NDCC 26.1-33-17, 26.1-34-11
Law Implemented: NDCC 26.1-33,
					 26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-12 - Supersession of conflicting rules

Current through Supplement No. 393, July, 2024
This chapter supersedes and fully replaces any prior rule
				  concerning variable life insurance. This chapter is particularly intended to
				  replace any provisions of chapter 45-04-02, sections
				  45-04-04-01 through
				  45-04-02-18 as they may pertain to
				  variable life insurance. The provisions of 45-04-02, sections
				  45-04-02-01 through
				  45-04-02-18 that regulate variable
				  annuities remain undisturbed by this chapter.
General Authority: NDCC 26.1-33-17, 26.1-34-11
Law Implemented: NDCC 26.1-33,
					 26.1-34
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-01 - Definitions

Current through Supplement No. 393, July, 2024
As used in this chapter:
1. "Cash surrender value" means the net cash surrender value
				  plus any amounts outstanding as policy loans.
2. "Fixed premium universal life insurance policy" means a
				  universal life insurance policy other than a flexible premium universal life
				  insurance policy.
3. "Flexible premium universal life insurance policy" means a
				  universal life insurance policy which permits the policyowner to vary,
				  independently of each other, the amount or timing of one or more premium
				  payments or the amount of insurance.
4. "Interest-indexed universal life insurance policy" means
				  any universal life insurance policy where the interest credits are linked to an
				  external referent.
5. "Net cash surrender value" means the maximum amount
				  payable to the policyowner upon surrender.
6. "Policy value" means the amount to which separately
				  identified interest credits and mortality, expense, or other charges are made
				  under a universal life insurance policy.
7. "Universal life insurance policy" means any individual
				  life insurance policy under the provisions of which separately identified
				  interest credits (other than in connection with dividend accumulations, premium
				  deposit funds, or other supplementary accounts) and mortality and expense
				  charges are made to the policy. A universal life insurance policy may provide
				  for other credits and charges, such as charges for the cost of benefits
				  provided by rider.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-30,
					 26.1-33
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-02 - Scope

Current through Supplement No. 393, July, 2024
1. This chapter encompasses all individual
				universal life insurance policies except those policies defined under
				subsection 14 of section
				45-04-04-01.
2. All companies shall be in full compliance
				with this rule on or before one yearfrom January 1,1985.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-30,
					 26.1-33
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-05 - Mandatory policy provisions

Current through Supplement No. 393, July, 2024
The policy shall provide the following:
1.
Periodic disclosure to policyowner.
The policy must provide that the policyowner will be sent, without
				charge, at least annually, a report which will serve to keep such policyowner
				advised as to the status of the policy. The end of the current report period
				must be not more than three months previous to the date of the mailing of the
				report. Specific requirements of this report are detailed in section
				45-04-05-06.
2.
Illustrative reports.
The
				policy must provide for an illustrative report which will be sent to the
				policyowner upon request. Minimum requirements of such report are the same as
				those set forth in section
				45-04-05-05. The insurer may
				charge the policyowner a reasonable fee for providing the report.
3.
Policy guarantees.
The policy
				must provide guarantees of minimum interest credits and maximum mortality and
				expense charges. All values and data shown in the policy must be based on
				guarantees. No figures based on nonguarantees may be included in the policy.
4.
Calculation of cash
				surrender values.
The policy must contain at least a general description
				of the calculation of cash surrender values including the following
				information:
a. The guaranteed maximum
				expense charges and loads.
b. Any
				limitation on the crediting of additional interest. Interest credits may not
				remain conditional for a period longer than twelve months.
c. The guaranteed minimum rate or rates of
				interest.
d. The guaranteed
				maximum mortality charges.
e. Any
				other guaranteed charges.
f. Any
				surrender or partial withdrawal charges.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-06 - Disclosure requirements

Current through Supplement No. 393, July, 2024
In connection with any advertising, solicitation,
				  negotiation, or procurement of a universal life insurance policy:
1. Any statement of policy cost factors or
				benefits must contain:
a. The corresponding
				guaranteed policy cost factors or benefits, clearly identified.
b. A statement explaining the nonguaranteed
				nature of any current interest rates, charges, or other fees applied to the
				policy, including the insurer's rights to alter any of these factors.
c. Any limitations on the
				crediting of interest, including identification of those portions of the policy
				to which a specified interest rate shall be credited.
(Note: Policy cost factors are those amounts which affect
				  the price per thousand of life insurance coverage or other benefits. They
				  include: interest, mortality, expense charges and fees, including any surrender
				  or withdrawal charges, but not persistency assumptions.)
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-07 - Periodic disclosure to policyowner requirements

Current through Supplement No. 393, July, 2024
The policy must provide that the policyowner will be sent,
				  without charge, at least annually, a report which will serve to keep such
				  policyowner advised of the status of the policy. The end of the current report
				  period may be not more than three months previous to the date of the mailing of
				  the report.
The report must include the following:
1. The beginning and end of the current
				report period.
2. The policy value
				at the end of the previous report period and at the end of the current report
				period.
3. The total amounts which
				have been credited or debited to the policy value during the current report
				period, identifying each by type (e.g., interest, mortality, expense and
				riders).
4. The current death
				benefit at the end of the current report period on each life covered by the
				policy.
5. The net cash surrender
				value of the policy as of the end of the current report period.
6. The amount of outstanding loans, if any,
				as of the end of the current report period.
7. 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 must be included in the report.
8. 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 must be included in the report.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-30,
					 26.1-33
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-08 - Interest-indexed universal life insurance policies

Current through Supplement No. 393, July, 2024
1.
Initial filing requirements.
The following information must be submitted in connection with any
				filing of interest-indexed universal life insurance policies ("interest-indexed
				policies"). All such information received must be treated confidentially to the
				extent permitted by law.
a. A description of
				how the interest credits are determined, including:
(1) A description of the index.
(2) The relationship between the value of the
				index and the actual interest rate to be credited.
(3) The frequency and timing of determining
				the interest rate.
(4) The
				allocation of interest credits, if more than one rate of interest applies to
				different portions of the policy value.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-05 - Universal Life Insurance › Section 45-04-05-09 - Separability

Current through Supplement No. 393, July, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of such provision to other persons
				  or circumstances is not affected thereby.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-30,
					 26.1-33
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-06 - Smoker/Nonsmoker Mortality Tables › Section 45-04-06-01 - Definitions

Current through Supplement No. 393, July, 2024
As used in this chapter:
1. "Composite mortality tables" refers to the mortality
				  tables defined in subsections 3 through 6 of this section as they were
				  originally published with rates of mortality that do not distinguish between
				  smokers and nonsmokers.
2. "Smoker and nonsmoker mortality tables" refers to the
				  mortality tables with separate rates of mortality for smokers and nonsmokers
				  derived from the tables defined in subsections 3 through 6 of this section
				  which were developed by the society of actuaries task force on smoker/nonsmoker
				  mortality and the California insurance department staff and recommended on the
				  NAIC technical staff actuarial group.
3. "1958 CET Table" means that mortality table developed by
				  the society of actuaries special committee on new mortality tables,
				  incorporated in the NAIC Model Standard Nonforfeiture Law for Life Insurance,
				  and referred to in that model as the Commissioners 1958 Extended Term Insurance
				  Table.
4. "1958 CSO Table" means that mortality table developed by
				  the society of actuaries special committee on new mortality tables,
				  incorporated in the NAIC Model Standard Nonforfeiture Law for Life Insurance,
				  and referred to in that model as the Commissioners 1958 Standard Ordinary
				  Mortality Table.
5. "1980 CET Table" means that mortality table consisting of
				  separate rates of mortality for male and female lives, developed by the society
				  of actuaries committee to recommend new mortality tables for valuation of
				  standard individual ordinary life insurance, incorporated in the 1980 NAIC
				  amendments to the Model Standard Nonforfeiture Law for Life Insurance, and
				  referred to in those models as the Commissioners 1980 Extended Term Insurance
				  Table.
6. "1980 CSO Table, with or without ten-year select mortality
				  factor" means that mortality table, consisting of separate rate of mortality
				  for male and female lives, developed by the society of actuaries committee to
				  recommend new mortality tables for valuation of standard individual ordinary
				  life insurance, incorporated in the 1980 NAIC amendments to the Model Standard
				  Valuation Law and Standard Nonforfeiture Law for Life Insurance, and referred
				  to in those models as the Commissioners 1980 Standard Ordinary Mortality Table,
				  with or without ten-year select mortality factors. The same select factors will
				  be used for both smokers and nonsmokers tables.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
					 26.1-33