Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 10 - Life, Accident and Health › Subchapter 9 - Annuities › Part 3 - PERTAINING TO SEPARATE ACCOUNTS IN CONNECTION WITH VARIABLE ANNUITY CONTRACTS › Section 365:10-9-15 - Contracts providing for variable benefits

Current through Vol.
				  41, No. 20, July 1, 2024
(a)
Statement of essential
				  features.
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
				  insurance company in determining the dollar amount of such variable benefits.
				  Any such contract, including a group contract and any certificate issued
				  thereunder, shall state that such dollar amount will vary to reflect investment
				  experience and may decrease or increase, and shall contain on its first page a
				  clear statement to the effect that the benefits thereunder are on a variable
				  basis.
(b)
Illustrations of
				  benefits payable.
Illustrations of benefits payable under any variable
				  annuity contract providing benefits payable in variable amounts shall not
				  include projections of past experience into the future or attempted predictions
				  of future investment experience.
(c)
Individual variable annuity
				  contract provisions.
No individual variable annuity contract calling for
				  the payment of periodic stipulated payments to the insurer shall be delivered
				  or issued for delivery in this state unless it contains in substance the
				  following provision, or provisions which, in the opinion of the Commissioner,
				  are more favorable to the holders of such contracts:
(1) a provision that there shall be a period
				  of grace of 30 days, within which any stipulated payment to the insurer falling
				  due after the first may be made, during which period of grace the contract
				  shall continue in force. The contract may include a statement of the basis for
				  determining the date as of which any such payment received during the period of
				  grace shall be applied to produce the values under the contact arising there
				  from;
(2) a provision that, at any
				  time within one year from the date of default, in making periodic stipulated
				  payments to the insurer during the life of the annuitant and unless the cash
				  surrender value has been paid, the contract may be reinstated upon payment to
				  the insurer of such overdue payments as required by the contract, and of all
				  indebtedness to the insurer on the contract, including interest. The contract
				  may include a statement of the basis for determining the date as of which the
				  amount to cover such overdue payments and indebtedness shall be applied to
				  produce the values under the contract arising there from;
(3) a provision specifying the options
				  available in the event of default in a periodic stipulated payment. Such
				  options may include an option to surrender the contract for a cash value as
				  determined by the contract, and shall include an option to receive a paid-up
				  annuity if the contract is not surrendered for cash, the amount of such paid-up
				  annuity commencement date in accordance with the terms of the
				  contract.