reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › FILING OF CONTRACTS, APPLICATION AND CONTRACT REQUIREMENTS › Section 85.36 - Stipulation of expense, mortality and investment factors

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Any individual variable annuity contract
				  or group annuity contract where accumulation values are held separately for
				  each covered participant delivered or issued for delivery in this Commonwealth
				  shall stipulate the expense, mortality and investment increment factors to be
				  used in computing the dollar amount of variable benefits or other contractual
				  payments or values thereunder and shall guarantee that the expense and
				  mortality results shall not adversely affect such dollar amounts.
(b) Any individual variable accumulation
				  annuity contract or group variable accumulation contract where accumulation
				  values are held separately for each covered participant delivered or issued for
				  delivery in this Commonwealth shall stipulate the expenses to be used in
				  computing the dollar amount of the accumulation values, and it shall guarantee
				  that the expense results shall not adversely affect such dollar
				  amounts.
(c) When used in this
				  section, the term "expense" may exclude some or all taxes, as stipulated in the
				  contract.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › FILING OF CONTRACTS, APPLICATION AND CONTRACT REQUIREMENTS › Section 85.37 - Computing dollar amounts of benefits

Current through Register Vol. 54, No. 28, July 13, 2024
In computing the dollar amounts of variable benefits or
					 other contractual payments or values under an individual variable annuity
					 contract the following requirements shall apply:
(1) The annual net investment increment
				  assumption shall not exceed 6%, except with the approval of the
				  Department.
(2) To the extent that
				  the level of benefits may be affected by mortality results, the mortality
				  factor shall be determined from the Annuity Mortality Table for 1949, Ultimate,
				  or any modification of that table not having a higher mortality rate at any
				  age, or, if approved by the Department, from another table.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › FILING OF CONTRACTS, APPLICATION AND CONTRACT REQUIREMENTS › Section 85.38 - Disclosure of consideration to be paid

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In the sale of a variable annuity
				  contract, made in conjunction with the sale of a fixed annuity contract or a
				  variable accumulation annuity contract, there shall be a disclosure to the
				  prospective purchaser which shows the consideration to be paid for the variable
				  annuity contract separately from the other charges. If any benefits or
				  nonforfeiture values which may accrue prior to the death of the insured are
				  involved in the presentation of such a sale, the value of such fixed annuity
				  contract or variable accumulation annuity shall be shown separately from any
				  other values.
(b) In the sale of a
				  variable accumulation contract made in conjunction with the sale of a variable
				  annuity contract or fixed annuity contract, there shall be a disclosure to the
				  prospective purchaser which shows the consideration to be paid for the variable
				  accumulation contract separately from the other charges. If any benefits or
				  nonforfeiture values which may accrue prior to the death of the insured are
				  involved in the presentation of such a sale, the value of such variable annuity
				  contract or fixed annuity contract shall be shown separately from any other
				  values.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › FILING OF CONTRACTS, APPLICATION AND CONTRACT REQUIREMENTS › Section 85.39 - Disclosure of consideration for fixed benefits, variable benefits, and variable accumulations

Current through Register Vol. 54, No. 28, July 13, 2024
Annuity contracts which provide for any combination of
					 fixed benefits, variable benefits, and variable accumulations, which are
					 specified at the time of the sale of such contracts, shall show separately the
					 consideration to be paid for the fixed benefits, variable benefits and variable
					 accumulation values or the proportion of such consideration to be paid for each
					 benefit.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › FILING OF CONTRACTS, APPLICATION AND CONTRACT REQUIREMENTS › Section 85.40 - Permissible guaranteed benefits

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  The following types of benefits guaranteed as to dollar amount shall be
				  permitted in variable annuity contracts or variable accumulation annuity
				  contracts; any other benefits guaranteed as to dollar amount which are not
				  described in this subsection may be permitted if the Department determines that
				  these benefits afford the policyholders and the public protection substantially
				  equal to that provided by the benefits described in this subsection:
(1) Minimum Death Benefit, which guarantees
				  that, upon the death of the annuitant, the beneficiary will be paid a specified
				  percentage of gross premium paid to date, less any payments already made. The
				  maximum percentage of gross premium that is payable is 100%.
(2) Minimum Surrender Value, which guarantees
				  that, prior to the commencement of annuity payments but on or after a specified
				  policy anniversary or of a group certificate which shall not be earlier than
				  the tenth anniversary if the issue age is less than 55 nor earlier than the
				  fifth anniversary if the issue age is greater than or equal to 55, the cash
				  value of the contract will not be less than some specified percentage, not to
				  exceed 100%, of the gross premium paid to date for the contract.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following terms, when used in this chapter, have the
				  following meanings, unless the context clearly indicates otherwise:
Premium deposit fund
-Amounts paid in and
				  held for payments of future contractual obligations of policyholders or
				  contractholders under an individual life insurance policy or an individual
				  annuity contract.
Retirement deposit fund
-Paid-in amounts and
				  interests credited thereon held for the purchase at a future date of annuity
				  benefits for the policyholder of an individual life policy or the
				  contractholder of an individual annuity contract.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.2 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
In transacting business, life insurance companies and
				  fraternal benefit societies, for the convenience of policyholders and
				  contractholders, accept funds for paying premiums or considerations falling due
				  in the future. This chapter allows life insurance companies and fraternal
				  benefit societies to accept deposits under an individual life insurance policy
				  or an individual annuity contract only under the conditions and limitations set
				  forth in this chapter. When this chapter was adopted, life insurance policies
				  and annuity contracts generally provided for the payment of fixed premium
				  amounts. Therefore, the chapter was designed to apply to fixed premium policies
				  and contracts. In the current Pennsylvania marketplace, both fixed premium and
				  flexible premium policies and contracts are marketed and sold and this chapter
				  recognizes a distinction between fixed premium policies and contracts, and
				  flexible premium policies and contracts and establishes deposit limits which
				  are applicable to moneys held in premium deposit funds and retirement funds of
				  both types of premium payment policies and contracts.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.3 - Limit on fund amounts

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The maximum
				amount which may be held by the insurer for payment of future premiums,
				according to provisions in a fixed premium life insurance policy, contract,
				rider or endorsement, is the present value of gross premiums payable in the
				future discounted at the interest rate or rates guaranteed in the policy,
				contract, rider or endorsement.
(b)
				The maximum amount which may be held by the insurer for payment of future
				premiums, according to provisions in a flexible premium life insurance policy,
				contract, rider or endorsement, is the present value of the premium payments
				necessary to maintain the policy or contract in force to the maturity date,
				based on guaranteed charges and credits.
(c) The maximum amount which may be held by
				the insurer for payment of future annuity considerations, according to
				provisions in a fixed premium annuity contract, rider or endorsement, is the
				present value of gross considerations payable in the future under the annuity
				contract, rider or endorsement, discounted at the interest rate or rates
				guaranteed.
(d) The maximum amount
				which may be held by the insurer in a retirement deposit fund, established
				according to provisions in a fixed premium life insurance policy or fixed
				premium annuity contract, rider or endorsement, is the sum of gross premiums or
				gross considerations payable under the base life insurance policy or base
				annuity contract.
(e) The amount
				which may be held by the insurer in a retirement deposit fund, established
				according to provisions in a flexible premium life insurance policy, contract,
				rider or endorsement, is not subject to any maximum or other limit. The amounts
				held in a retirement deposit fund are subject to the requirements and
				provisions of section 410A of The Insurance Company Law of 1921 (40 P. S. §
										510.1).
(f) The amount which may be held by the
				insurer in a premium deposit fund or a retirement deposit fund, established
				according to provisions in a flexible premium annuity contract, rider or
				endorsement, is not subject to any maximum or other limit. The amounts held in
				a retirement deposit fund are subject to section 410C of The Insurance Company
				Law of 1921 (40 P. S. §
										510b)
				relating to standard nonforfeiture law for individual deferred
				annuities.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.4 - Interest rates

Current through Register Vol. 54, No. 28, July 13, 2024
The interest rate or rates guaranteed to be paid on the
				  amount held in a premium deposit fund or a retirement deposit fund shall be
				  clearly stated in policy, contract, rider or endorsement. Language which tends
				  to invite misrepresentation is prohibited.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.6 - Ownership

Current through Register Vol. 54, No. 28, July 13, 2024
Ownership of the fund may not be vested in depositors other
				  than the policyholder or contractholder unless the policy, contract, rider or
				  endorsement provides otherwise.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.7 - Restriction on automatic premium loan

Current through Register Vol. 54, No. 28, July 13, 2024
Unpaid premiums and considerations shall be paid from the
				  deposit fund prior to application of any automatic premium loan unless the
				  policyholder, contract holder or fund-owner selects
				  otherwise.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.8 - Return of deposit funds

Current through Register Vol. 54, No. 28, July 13, 2024
The funds shall be payable in cash upon death and may be used
				  to increase nonforteiture values for the policyholder or contract holder
				  only.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.9 - Deferment of and charges against withdrawal

Current through Register Vol. 54, No. 28, July 13, 2024
A provision shall be included to allow the fund-owner to
				  withdraw the fund subject solely to the condition, if stated in the policy,
				  contract, rider or endorsement, that reserves to the insurer the right to defer
				  payment for 6 months. Charges against withdrawal shall be disclosed in policy,
				  contract, rider or endorsement.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.10 - Projection of results and report of fund balance

Current through Register Vol. 54, No. 28, July 13, 2024
If sales promotion literature illustrates the projected
				  results of the retirement deposit fund, the guaranteed interest rate or rates
				  shall be used regardless of whether or not projected results are also shown on
				  the basis of the rate currently being paid or some lesser rate. The insurer
				  shall furnish each owner of a retirement deposit fund with a written report on
				  the accumulated balance of the fund at least once a year.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.11 - Deceptive practices prohibited

Current through Register Vol. 54, No. 28, July 13, 2024
Sales promotion literature and contract forms may not create
				  the impression that the funds are the same as a savings account or deposit in a
				  banking or saving institution and the use of documents which bear resemblance
				  to savings bank passbooks or similar items is prohibited.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 86 - PREMIUM AND RETIREMENT DEPOSIT FUNDS › Section 86.12 - Exemption

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter does not apply to variable life policies or
				  variable annuity contracts. It also does not apply to policies, contracts,
				  riders or endorsements issued for funding pension or profit-sharing plans which
				  are qualified under the Internal Revenue Code of 1954 and are regulated by the
				  Employee Retirement Income Security Act of 1974 (Pub. L. 93-406) (88 Stat.
				  829).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the context clearly indicates
					 otherwise:
Charter policy
-A form of life insurance
					 policy, usually issued by a newly organized company, which is sold on the basis
					 that its availability will be limited to a specific predetermined number of
					 units of a fixed dollar amount and which generally provides that the
					 policyholder shall participate in the earnings resulting from either the
					 participating policies or the nonparticipating policies sold by the company, or
					 perhaps both. The prospective purchaser is led to believe that he will receive
					 a special advantage in any future distribution of earnings, profits, dividends
					 or abatement of premium not available to those persons holding other types of
					 policies issued by the company.
Department
-The Insurance Department of
					 the Commonwealth.
Profit-sharing policy
-That form of life
					 insurance policy which contains provisions representing or tending to create
					 the understanding that the policyholder will be eligible to participate, with a
					 special advantage not available to the persons holding other types of policies
					 issued by the same company, in any future distribution of general corporate
					 profits, as distinguished from a refund of the excess premiums paid by that
					 policyholder.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.2 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
(a) This chapter
				  identifies and prohibits certain acts, practices and contract forms which the
				  Department considers to be unfair, deceptive and unsound methods of transacting
				  the business of life insurance in this Commonwealth, and to establish certain
				  requirements in the solicitation and sale of life insurance buying to the end
				  that policyholders and the insurance-buying public may not be misinformed or
				  misled concerning contracts of life insurance or annuities purchased by
				  them.
(b) This chapter serves the
				  best interests of the public and is not directed at a particular company or
				  group of companies or agent or group of agents.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.3 - Guaranteed annual endowments

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A life
				  insurance policy containing a series of pure guaranteed annual endowments
				  evidenced by coupons, passbooks or similar devices generally identified with
				  investment or banking operations will not be approved for use and the policy
				  heretofore approved may not be issued or delivered in this Commonwealth on or
				  after February 26, 1968.
(b)
				  Another life insurance policy containing a series of pure guaranteed annual
				  endowments will not be approved for use and the policy heretofore approved may
				  not be issued or delivered in this Commonwealth on or after February 26, 1968,
				  unless all of the following requirements are satisfied:
(1) The gross premium for the pure guaranteed
				  annual endowment benefit shall be shown prominently and separately in the
				  policy, distinct from the gross premium for the life insurance
				  benefit.
(2) The insured shall be
				  entitled to withdraw the pure guaranteed annual endowments not less frequently
				  than at the end of the second policy year and at the end of each policy year
				  thereafter. The amount of the endowments available for withdrawal may not be
				  less than the aggregate premium paid for the endowments less any prior
				  withdrawals.
(3) Payment of a pure
				  guaranteed annual endowment may not be made contingent upon the payment of
				  premiums falling due on or after the time the pure guaranteed annual endowment
				  benefit has matured.
(4) The
				  separately stated gross premium for the series of pure guaranteed annual
				  endowments shall be based on reasonable assumptions and shall be consistent
				  with the basic policy form as to interest, mortality and expense.
(5) The amount of each of the pure guaranteed
				  annual endowments shall be expressed in dollars, both in the policy and in
				  sales or advertising material relating thereto, not as a percentage of a
				  premium or benefit.
(6) A pure
				  guaranteed annual endowment may not be described, either in the policy or in
				  sales or advertising material, as anything other than a guaranteed benefit for
				  which a premium is being paid by the policyholder.
(7) At the time the policy form is filed with
				  the Department for approval, it shall be accompanied by the materials,
				  including any sales presentation "kit" which the insurance company proposes to
				  use in connection with the policy.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.4 - Charter policy prohibited

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Charter
				  policies are an unfair method of competition. They purport to offer certain
				  benefits which are not authorized by statute and are without reasonable
				  expectation of achievement. The policies misrepresent the responsibility and
				  obligation of an insurance company for the equitable distribution of dividends
				  or abatement of premiums.
(b) A
				  charter policy may not be approved for use and a charter policy heretofore
				  approved may not be issued or delivered in this Commonwealth on or after
				  February 26, 1968.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.5 - Profit-sharing policy prohibited

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Profit-sharing policies are not permitted by statute and no profit-sharing
				  policy will be approved for use and no profit-sharing policy heretofore
				  approved shall be issued or delivered in this Commonwealth on or after February
				  26, 1968.
(b) Nothing contained in
				  subsection (a) is intended to apply to variable annuity contracts to the extent
				  that such are permitted under the laws of the Commonwealth and prescribed in
				  Chapter 85 (relating to variable annuity and variable accumulation annuity
				  contracts).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.6 - Policy name or title

Current through Register Vol. 54, No. 28, July 13, 2024
An insurance company, insurance agent or insurance company
					 representative may not deliver within this Commonwealth, or issue for delivery
					 within this Commonwealth, a policy of life insurance without the use of the
					 words "life insurance" in its name or title or the use of other language
					 clearly indicating that the policy is a policy of life
					 insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.7 - Use of certain terms

Current through Register Vol. 54, No. 28, July 13, 2024
The use of the terms "Investment," "Investment Plan,"
					 "Expansion Plan," "Profit," "Profits," "Profit-Sharing," and other similar
					 terms in connection with a policy of life insurance or an annuity contract in a
					 context or under such circumstances or conditions as to have the capacity or
					 tendency to mislead a purchaser or prospective purchaser of the policy or
					 contract to believe that he will receive, or that it is possible that he will
					 receive, something other than a life insurance policy or annuity contract or
					 some benefit not provided in the policy or contract or some benefit not
					 available to other persons of the same class and equal expectation of life is
					 unlawful and is prohibited.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.8 - Twisting

Current through Register Vol. 54, No. 28, July 13, 2024
An insurance company, insurance agent, insurance broker,
					 solicitor or insurance company representative may not, as a competitive or
					 twisting device, inform a policyholder or prospective policyholder that an
					 insurance company was required to change a policy form or related material to
					 comply with this chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.9 - Mutual funds

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A life
				  insurance company licensed in this Commonwealth and planning to merchandise
				  mutual funds shall, prior to the merchandising, file with the Department
				  complete details of the plan.
(b)
				  If, after review, the Department finds the merchandising plan unobjectionable,
				  it shall notify the insurance company in writing of the finding.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.10 - Penalties

Current through Register Vol. 54, No. 28, July 13, 2024
A violation of this chapter by whatever means, including
					 but not being limited to the use of certain policy forms or presentations,
					 whether involving language or illustrations disseminated by means of sales
					 kits, policy jackets or covers, letters, personal confrontations, visual aids
					 or other media, shall be deemed to be a violation of the insurance laws of the
					 Commonwealth and shall subject a person, firm or corporation so violating this
					 chapter to the penalties provided by law.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.11 - Existing policies and contracts

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter does not affect the validity of any life
					 insurance policy or annuity contract in force on the effective date hereof.
					 However, the previous approval by the Department of any form of life insurance
					 policy or annuity contract prohibited by this chapter was withdrawn, effective
					 February 26, 1968, and the policy or contract may not be sold after that
					 date.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.12 - Limited benefit life policies

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				  Insurance Commissioner has disapproved any further issue of limited benefit
				  life policies. Limited benefit life policies are those plans which provide only
				  the following or similar coverages during certain specified periods.
(1) For natural death during a specified
				  period, a return of premiums plus interest.
(2) For accidental death during the specified
				  period, the face amount of the policy.
(3) For death from any cause after the
				  specified period, the face amount of the policy.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › GENERAL PROVISIONS › Section 87.13 - Modified premium life insurance policies

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Description of modified premium
				  life products.
Modified premium life products shall conform with the
				  following:
(1) Modified premium term
				  insurance is a contract of insurance which involves the payment of an
				  additional first-year premium which is returned to the policyholder at the end
				  of a selected period of years, usually 8 or 10, increased by both interest and
				  forfeitures of those who terminate their contracts during the term
				  period.
(2) Modified premium whole
				  life is similar to modified premium term insurance except that the term
				  insurance benefit is converted to a whole life plan at attained age. This
				  conversion to whole life coverage may be automatic or elected or the coverage
				  period may be continuous. In some policies, the increased additional premium
				  benefit is not paid out in cash upon conversion to whole life. After the
				  conversion, the nonforfeiture values of the whole life policy may or may not be
				  augmented by the value of this additional premium. Some converted policies
				  provide nonforfeiture values which progress so that the additional premium
				  gradually disappears over the life of the policy. Some modified premium whole
				  life policies offer the policyholder the option to "roll over" the value and
				  start a new modified premium whole life policy instead of continuing on the
				  original contract. In this case and depending upon the policy design, some or
				  all of the augmented premium from the original coverage is used as the initial
				  large premium for the new coverage; thus, it is possible for a modified premium
				  whole life insurance policy to be rolled over several times so that it in
				  effect becomes a series of renewable modified premium life insurance
				  policies.
(3) Another life
				  insurance product which is similar to a modified premium life product and is
				  determined by the Insurance Commissioner to be a modified premium life product
				  will be subject to the requirements of this chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.21 - Scope

Current through Register Vol. 54, No. 28, July 13, 2024
This section and §§
										87.22-87.42 apply to life insurance
					 companies, brokers, agents, solicitors or other representatives of the
					 insurance companies carrying on business within this
					 Commonwealth.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.22 - Statements regarding status of industry or company

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or other
					 representative may not make a statement or reference relating to the growth of
					 the life insurance industry or to the tax status of life insurance companies in
					 connection with a solicitation of an application for life insurance in a
					 context which could reasonably be understood to interest a prospect in the
					 purchase of shares of stock in an insurance company rather than in the purchase
					 of a life insurance policy.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.23 - Implying that insured is stockholder

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A life insurance company, broker, agent,
				  solicitor or other representative may not make a statement which reasonably
				  gives rise to the inference that an insured or a prospective insured, by virtue
				  of purchasing a policy of life insurance, will enjoy a status common to a
				  stockholder or will acquire a stock ownership interest in the insurance
				  company.
(b) Nothing in subsection
				  (a) is intended to prohibit the practice of pointing out those aspects in which
				  the status of a policyholder in a mutual life insurance company is similar to
				  that of a stockholder in a stock life insurance company.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.24 - Implying that the policy was sold by the investment department of the company

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or other
					 representative may not make a reference to or statement concerning an insurance
					 company's "Investment Department," "Insured Investment Department" or similar
					 terminology implying that the policy was sold or issued by the investment
					 department of the life insurance company.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.25 - Implying special treatment

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A life
				  insurance company, broker, agent, solicitor or representative may not make a
				  statement or reference which would reasonably tend to imply that by purchasing
				  a policy the purchaser or prospective purchaser will become a member of a
				  limited group of persons who may receive special advantages or favored
				  treatment in the payment of dividends, unless the benefits are specifically
				  provided in the insurance contract.
(b) Subsection (a) does not apply to policies
				  under which insured persons of one class of risk may receive dividends at a
				  higher rate than persons of another class of risk.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.26 - Implying limited availability of policy

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, solicitor, broker, agent or
					 representative may not state or imply that only a limited number of persons, or
					 a limited class of persons will be eligible to buy a particular kind of policy,
					 unless the limitation is related to recognized underwriting practices and may
					 be verified by the underwriting practices of the insurance
					 company.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.27 - Implying that insured will share in surplus company earnings

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not state or imply that policyholders who are said to act as
					 "centers of influence" for an insurance company will share, because of so
					 acting, in the surplus earnings of the company in some manner not available to
					 other policy holders who are otherwise in the same class.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.28 - Reference to payment as "deposit

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not describe or refer to premium payments in language which
					 states that the payment is a "deposit," unless either of the following
					 apply:
(1) The payment establishes a
				  debtor-creditor relationship between the life insurance company and the
				  policyholder and a showing is made as to when and how the deposit may be
				  withdrawn.
(2) The term is used in
				  conjunction with the word "premium" in such a manner as to indicate clearly the
				  true character of the payment.
This section cited in 31 Pa. Code §
												87.21 (relating to scope); 31 Pa.
						Code §
												90c.8 (relating to prohibited
						terminology); 31 Pa. Code §
												90d.6 (relating to prohibited
						terminology); 31 Pa. Code §
												90e.8 (relating to prohibited
						terminology); 31 Pa. Code §
												90f.9 (relating to prohibited
						terminology); 31 Pa. Code §
												90g.9 (relating to prohibited
						terminology); and 31 Pa. Code §
												90h.7 (relating to prohibited
						terminology).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.29 - Illustration of future dividends

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not provide an illustration or projection of future
					 dividends on a policy, unless either of the following apply:
(1) The illustration or projection is based
				  upon the experience currently used by the insurance company for dividends or
				  upon a scale adopted by the company.
(2) The illustration or projection clearly
				  indicates that the dividends shown are not guaranteed.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.30 - Implying that payment of dividends is assured

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not use the words "dividends," "cash dividends," "surplus"
					 or similar phrases to state or imply that the payment of dividends is
					 guaranteed or certain to occur.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.31 - Sharing in percentage of surplus

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A life insurance company, broker, agent,
				  solicitor or representative may not state or imply that a purchaser of a policy
				  will share in a stated percentage or portion of the earnings of the insurance
				  company.
(b) Subsection (a) is not
				  intended to prohibit a representation that a holder of a participating life
				  insurance policy will participate in the share of the divisible surplus, if
				  any, apportioned to the policy by the insurance company.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.32 - Statements concerning projected dividends

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not make a statement or imply that projected dividends under
					 a participating policy will be or may be sufficient to assure the receipt of
					 benefits, such as a paid-up policy, without the further payment of premiums,
					 unless the statement is accompanied by an adequate explanation as to what
					 benefits or coverage would be provided or discontinued at the time and the
					 conditions under which this would occur.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.33 - Explanation of nonforfeiture benefits

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not state that the insured is guaranteed certain benefits if
					 the policy is allowed to lapse without making an adequate explanation of the
					 nonforfeiture benefits.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.34 - Describing policy as "units of participation

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not describe a life insurance policy or premium payments
					 therefor in terms of "units of participation," unless accompanied by other
					 language clearly indicating the reference to a life insurance policy or to
					 premium payments, as the case may be.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.35 - Misleading prepared answers

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not include in sales kits and prepared sales presentations
					 proposed answers, to be used in response to questions from a prospect as to
					 whether life insurance is being sold, which are designed to avoid a clear and
					 unequivocal statement that life insurance is the subject matter of the
					 solicitation.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.36 - Illustrations using dollar amounts

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not display to a prospective policyholder material which
					 includes illustrations, using dollar amounts, in connection with the proposed
					 sale of a life insurance policy or endowment benefits, unless the material
					 clearly identifies the source of the dollar amounts and the subject to which
					 the amounts pertain.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.37 - Profit from policy lapse or surrender

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not make a general statement that insurance companies make a
					 profit as a result of policy lapses or surrenders.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.38 - Misleading comparisons to other companies

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not make unfair or misleading comparisons to the past
					 experience of other life insurance companies as a means of projecting possible
					 experience of the soliciting company if those comparisons are designed to
					 enhance the characteristics of the policy being sold by confining the
					 comparisons to companies having favorable experience with that type of policy
					 without a fair disclosure of other companies which have had unfavorable
					 experience with that type of policy, when it is within the knowledge of the
					 company, broker, agent, solicitor or other company representative that other
					 companies have had an unfavorable experience.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.39 - Misrepresentation of pure annual endowment benefits

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not represent pure annual endowment benefits as earnings on
					 premiums invested, or represent that a pure annual endowment benefit in a
					 policy is anything other than a guaranteed benefit for which a premium is being
					 paid by the policyholder.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.40 - False comparison with other policies

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not state that a policy contains certain features which are
					 not found in other life insurance policies, unless that is
					 true.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.41 - Misrepresentation of options to purchase insurance

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not represent an option to purchase insurance in the future
					 in such a manner that the policyholder might reasonably infer that he is
					 purchasing term insurance or some other form of life insurance which would
					 result in a payment to the beneficiary in the event of the death of the
					 policyholder.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 87 - REQUIREMENTS FOR CERTAIN LIFE INSURANCE POLICIES AND SALES PRACTICES › SALES PRACTICES › Section 87.42 - Misrepresenting the nature of the policy

Current through Register Vol. 54, No. 28, July 13, 2024
A life insurance company, broker, agent, solicitor or
					 representative may not make a reference to a policy of life insurance or an
					 annuity contract misrepresenting the true nature of the policy or
					 contract.
This section cited in 31 Pa. Code §
												87.21 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 88 - INDIVIDUAL ACCIDENT AND SICKNESS INSURANCE MINIMUM STANDARDS › GENERAL PROVISIONS › Section 88.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The purpose of
				  this chapter is to implement the act of May 18, 1976 (P. L. 123, No. 54)
				  (40
				  P. S. §§
											776.1-776.7) so as to
				  provide for reasonable standardization of terms and coverages contained in
				  individual accident and health insurance policies, nongroup subscriber
				  contracts issued by health plan corporations and nonprofit health service plans
				  and certificates issued by fraternal benefit societies. This chapter does not
				  apply to credit accident and health insurance.
(b) In addition, it is the purpose of this
				  chapter to facilitate public understanding and comparison of the terms,
				  benefits and conditions of individual policies or contracts, to eliminate
				  provisions which may be misleading or unreasonably confusing in connection
				  either with purchase of the coverage or with the settlement of claims and to
				  provide for full disclosure of these matters in the sale of policies or
				  contracts.