reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.4 - 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:
Act
-The Insurance Department Act of 1921
				  (40
				  P. S. §§
										1-297.4).
Actuarial opinion
- The opinion of an
				  appointed actuary regarding the adequacy of the reserves and related actuarial
				  items based on an asset adequacy analysis in accordance with §
									84b.8 (relating to statement of
				  actuarial opinion based on an asset adequacy analysis) and with applicable
				  actuarial standards.
Actuarial Standards Board
-The board
				  established by the American Academy of Actuaries, or a successor thereto, to
				  develop and promulgate standards of actuarial practice.
Annual statement
-The statement required by
				  section 320 of the Insurance Company Law of 1921 (40 P. S. §
										443) to be filed by a life insurance company
				  with the Commissioner annually and the statement required by section 602 of The
				  Fraternal Benefit Societies Code (40 P. S. §
										1142-602) to be filed by a fraternal benefit
				  society with the Commissioner annually.
Appointed actuary
-A qualified actuary who is
				  appointed or retained either directly by the board of directors or by the
				  authority of the board of directors through an executive officer of the
				  company, provided that the executive officer is not the qualified actuary of
				  the company, to prepare the statement of actuarial opinion and supporting
				  memorandum as required by 301(g) of the act (40 P. S. §
										71(g)).
Asset adequacy analysis
-An analysis that
				  meets the standards and other requirements referred to in §
									84b.5(d) 
				  (relating to general requirements).
Commissioner
-The Insurance Commissioner of
				  the Commonwealth.
Company
-A life insurance company or
				  fraternal benefit society subject to this chapter.
Department
-The Insurance Department of the
				  Commonwealth.
NAIC
-National Association of Insurance
				  Commissioners, or a successor thereto.
Policy
-When used with respect to a fraternal
				  benefit society, a certificate.
Qualified actuary
-An individual who meets
				  the requirements in §
									84b.5(b).
This section cited in 31 Pa. Code §
											84c.3 (relating to
					 definitions).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.5 - General requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Submission of statement of actuarial opinion.
(1) A company shall include on or attach to
				Page 1 of the annual statement for each year, the statement of an appointed
				actuary, entitled "Statement of Actuarial Opinion," setting forth an opinion
				relating to reserves and related actuarial items held in support of policies
				and contracts, in accordance with §
										84b.8 (relating to statement of
				actuarial opinion based on asset adequacy analysis).
(2) Upon written request by the company, the
				Commissioner may grant an extension of the date for submission of the statement
				of actuarial opinion.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.8 - Statement of actuarial opinion based on an asset adequacy analysis

Current through Register Vol. 54, No. 28, July 13, 2024
General description
. The statement of
				  actuarial opinion required under §
									84b.5 (relating to general
				  requirements) must consist of the following:
(1) An opening paragraph that meets the
				following requirements:
(i) Identifies the
				actuary's name and title.
(ii)
				Identifies the insurance company employing the actuary, or if a consulting
				actuary, the name of the firm with which the actuary is associated.
(iii) States that the actuary is a member of
				the American Academy of Actuaries (Academy) and that the actuary meets the
				Academy qualification standards for rendering the opinion.
(iv) States that the actuary was appointed
				by, or by the authority of, the board of directors of the insurer to render the
				opinion and is familiar with the valuation requirements applicable to life and
				health insurance companies.
(v)
				States the date of the notification letter sent to the Commissioner with
				respect to the appointment.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.9 - Description of actuarial memorandum including an asset adequacy analysis and regulatory asset adequacy issues summary

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General
.
(1) In accordance with section 301(g) of the
				act (40 P. S. §
											71(g)), the appointed
				actuary shall prepare a memorandum to the company describing the analysis done
				in support of the opinion regarding the reserves. The memorandum shall be made
				available for examination by the Commissioner upon the Commissioner's request
				but will be returned to the company after examination and will not be
				considered a record of the Department or subject to automatic filing with the
				Commissioner.
(2) In preparing the
				memorandum, the appointed actuary may rely on, and include as a part of the
				memorandum, memoranda prepared and signed by other actuaries who are qualified
				within the meaning of §
										84b.5(b)
				(relating to general requirements), with respect to the areas covered in the
				memoranda, and so state in their memoranda.
(3) If the Commissioner requests a memorandum
				and no memorandum exists or if the Commissioner finds that the analysis
				described in the memorandum fails to meet the standards of the Actuarial
				Standards Board or the standards and requirements of this chapter, the
				Commissioner may designate a qualified actuary to review the opinion and
				prepare supporting memorandum as is required for review. The reasonable and
				necessary expense of the independent review shall be paid by the company but
				will be directed and controlled by the Commissioner. The reviewing actuary
				shall have the same status as an examiner for purposes of obtaining data from
				the company. The work papers and documentation of the reviewing actuary shall
				be retained by the Commissioner. Information provided by the company to the
				reviewing actuary and included in the work papers shall be considered as
				material provided by the company to the Commissioner and will be kept
				confidential to the same extent as is prescribed by law with respect to other
				material provided by the company to the Commissioner under the act. The
				reviewing actuary may not be an employe of a consulting firm involved with the
				preparation of a prior memorandum or opinion for the insurer under this chapter
				for any one of the current year or the preceding 3 years.
(4) In accordance with section 301(g) of the
				act, the appointed actuary shall prepare a regulatory asset adequacy issues
				summary, the contents of which are specified in this section. The regulatory
				asset adequacy issues summary shall be submitted by March 15 of the year
				following the year for which a statement of actuarial opinion based on asset
				adequacy is required. The regulatory asset adequacy issues summary shall be
				kept confidential to the same extent and under the same conditions as the
				actuarial memorandum.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.11 - Insurance company disciplinary action

Current through Register Vol. 54, No. 28, July 13, 2024
A company willfully making a false filing of an actuarial
				  opinion or supporting memorandum with the Commissioner or failing to
				  demonstrate a good faith effort to comply with this chapter or section 301(g)
				  of the act (40 P. S. §
										71(g)) may be subject to a
				  civil penalty not to exceed $50,000, following notice and a
				  hearing.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter implements section 301(c)(1) and (3) of the act
				  (40
				  P. S. §
										71(c)(1) and
				  (3)) by adopting select mortality factors for
				  use in determining minimum standards of valuation and by interpreting the
				  minimum reserve standard for the valuation of life insurance plans with
				  nonlevel premiums or benefits and plans with secondary guarantees. The method
				  for calculating basic reserves defined in this chapter will constitute the
				  Commissioner's Reserve Valuation Method for policies to which this chapter is
				  applicable.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.2 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
(a) This chapter
				applies to all life insurance policies, with or without nonforfeiture values,
				issued on or after May 6, 2000, subject to the following exceptions:
(b) This chapter does not apply to:
(1) An individual life insurance policy
				issued on or after May 6, 2000, if the policy is issued in accordance with and
				as a result of the exercise of a reentry provision contained in the original
				life insurance policy of the same or greater face amount, issued before May 6,
				2000, that guarantees the premium rates of the new policy. This chapter also
				does not apply to subsequent policies issued as a result of the exercise of the
				reentry provision, or a derivation of the provision, in the new
				policy.
(2) A universal life policy
				that meets all the following requirements:
(i)
				Secondary guarantee period, if any, is 5 years or less.
(ii) Specified premium for the secondary
				guarantee period is not less than the net level reserve premium for the
				secondary guarantee period based on the 1980 CSO valuation tables and the
				applicable maximum valuation interest rate.
(iii) The initial surrender charge is not
				less than 100% of the first year annualized specified premium for the secondary
				guarantee period.
(3) A
				variable life insurance policy that provides for life insurance, the amount or
				duration of which varies according to the investment experience of any separate
				account.
(4) A variable universal
				life insurance policy that provides for life insurance, the amount or duration
				of which varies according to the investment experience of any separate
				account.
(5) A group life insurance
				certificate unless the certificate provides for a stated or implied schedule of
				maximum gross premiums required to continue coverage in force for a period in
				excess of 1 year.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.3 - 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:
Act
-The Insurance Department Act of 1921
				  (40
				  P. S. §§
										1-321).
Appointed actuary
-The actuary as defined in
				  §
									84b.4 (relating to
				  definitions).
Basic reserves
-Reserves calculated in
				  accordance with section 301 of the act (40 P. S. §
										71).
Commissioner
-The Insurance Commissioner of
				  the Commonwealth.
Deficiency reserves
-The excess, if greater
				  than zero, of minimum reserves calculated in accordance with section 303 of the
				  act (40 P. S. §
										73) over
				  basic reserves.
Guaranteed gross premiums
-The premiums under
				  a policy of life insurance that are guaranteed and determined at issue.
Maximum valuation interest rates
-The
				  interest rates defined in section 301(c)(2) of the act that are to be used in
				  determining the minimum standard for the valuation of life insurance
				  policies.
NAIC
-The National Association of Insurance
				  Commissioners.
1980 CSO valuation tables
-The Commissioners'
				  1980 Standard Ordinary Mortality Table without 10-year selection factors,
				  adopted in section 301(c)(1) of the act and the smoker and nonsmoker variations
				  of the table adopted in §
									84.6 (relating to 1980 CSO and
				  1980 CET smoker and nonsmoker mortality tables).
Scheduled gross premium
-The smallest
				  illustrated gross premium at issue for other than universal life insurance
				  policies. For universal life insurance policies, the term means the smallest
				  specified premium described in §
									84c.7(a)(3)
				  (relating to minimum valuation standard for universal life insurance policies
				  that contain provisions resulting in the ability of a policyowner to keep a
				  policy in force over a secondary guarantee period), if any, or else the minimum
				  premium described in § 84c.7(a)(4).
Tabular cost of insurance
-The net single
				  premium at the beginning of a policy year for 1-year term insurance in the
				  amount of the guaranteed death benefit in that policy year.
10-year select mortality factors
-The select
				  mortality factors adopted in section 301(c)(1) of the act.
Universal life insurance policy
-An
				  individual life insurance policy under the provisions of which separately
				  identified mortality and expense charges and interest credits other than in
				  connection with dividend accumulations, premium deposit funds or other
				  supplementary accounts are made to the policy.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.4 - Segmented and unitary reserve methods

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Segmented reserves
.
				Segmented reserves shall be calculated as follows:
(1) Segmented reserves shall equal the
				present value of all future guaranteed benefits less the present value of all
				future net premiums in the current segment and in all subsequent
				segments.
(2) The length of each
				segment is determined by the contract segmentation method, as described in
				subsection (b).
(3) The net
				premiums within each segment are a uniform percentage of the respective
				guaranteed gross premiums within the segment. The uniform percentage for each
				segment is such that, at the beginning of the segment, the present value of the
				net premiums within the segment equals the present value of the death benefits
				within the segment, plus the present value of any unusual guaranteed cash value
				occurring at the end of the segment, less any unusual guaranteed cash value
				occurring at the start of the segment, plus for the first segment only, the
				excess of subparagraph (i) over subparagraph (ii), as follows:
(i) A net level annual premium equal to the
				present value, at the date of issue, of the benefits provided for in the first
				segment after the first policy year, divided by the present value, at the date
				of issue, of an annuity of 1 per year payable on the first and each subsequent
				anniversary within the first segment on which a premium falls due. However, the
				net level annual premium may not exceed the net level annual premium on the
				19-year premium whole life plan of insurance of the same renewal year
				equivalent level amount at an age 1 year higher than the age at issue of the
				policy.
(ii) A net 1-year term
				premium for the benefits provided for in the first policy year.
(4) The interest rates used in the
				present value calculations for any policy may not exceed the maximum valuation
				interest rate, determined with a guarantee duration equal to the sum of the
				lengths of all segments of the policy.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.5 - General requirements for basic reserves and premium deficiency reserves

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Basic
				reserves minimum standard
. At the election of the company for any one
				or more specified plans of life insurance, the minimum mortality standard for
				basic reserves may be calculated using the 1980 CSO valuation tables (or any
				other valuation mortality table adopted by the NAIC after May 6, 2000, and
				promulgated by regulation by the Commissioner for the purpose of calculating
				basic reserves) with select mortality factors. If select mortality factors are
				elected, they may be one of the following:
(1)
				The 10-year select mortality factors.
(2) The select mortality factors in Appendix
				A (relating to select mortality factors).
(3) Any other table of select mortality
				factors adopted by the NAIC after May 6, 2000, and promulgated by regulation by
				the Commissioner for the purpose of calculating basic
				reserves.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.6 - Minimum valuation standard for policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits (other than universal life policies)

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Basic reserves.
Basic reserves shall be calculated as the
				greater of the segmented reserves and the unitary reserves. Both the segmented
				reserves and the unitary reserves for any policy shall use the same valuation
				mortality table and selection factors. At the option of the insurer, in
				calculating segmented reserves and net premiums, either of the following
				adjustments may be made:
(1) Treat the unitary
				reserve, if greater than zero, applicable at the end of each segment as a pure
				endowment and subtract the unitary reserve, if greater than zero, applicable at
				the beginning of each segment from the present value of guaranteed life
				insurance and endowment benefits for each segment.
(2) Treat the guaranteed cash surrender
				value, if greater than zero, applicable at the end of each segment as a pure
				endowment and subtract the guaranteed cash surrender value, if greater than
				zero, applicable at the beginning of each segment from the present value of
				guaranteed life insurance and endowment benefits for each segment.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84c - VALUATION OF LIFE INSURANCE POLICIES › Section 84c.7 - Minimum valuation standard for universal life insurance policies that contain provisions resulting in the ability of a policyowner to keep a policy in force over a secondary guarantee period

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General requirements.
(1) Each of the following shall be considered
				a policy with a secondary guarantee:
(i) A
				policy with a guarantee that the policy will remain in force at the original
				schedule of benefits, subject only to the payment of specified
				premiums.
(ii) A policy in which
				the minimum premium at any duration is less than the corresponding 1-year
				valuation premium, calculated using the maximum valuation interest rate and the
				1980 CSO valuation tables with or without 10-year select mortality factors, or
				any other table adopted after May 6, 2000, by the NAIC and promulgated by
				regulation by the Commissioner for this purpose.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84d - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS AND THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 84d.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter implements section 301(c)(1) of the act
				  (40
				  P. S. §
										71(c)(1)),
				  section 410A(e)(8)(F) of the law (40 P. S. §
										510.1(e)(8)(F)) and §
									84c.5(a) and (b)
				  (relating to general requirements for basic reserves and premium deficiency
				  reserves) which authorize the Commissioner to promulgate regulations specifying
				  tables adopted after 1980 by the NAIC for use in determining minimum
				  nonforfeiture standards and minimum valuation standards.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84d - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS AND THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 84d.3 - 2001 CSO Mortality Table

Current through Register Vol. 54, No. 28, July 13, 2024
(a) At
				the election of the company for any one or more specified plans of insurance
				and subject to the conditions stated in this chapter, the 2001 CSO Mortality
				Table may be used as the minimum nonforfeiture standard and the minimum
				valuation standard for policies issued on or after January 1, 2004, and before
				the date specified in subsection (b). If the company elects to use the 2001 CSO
				Mortality Table, it shall do so for both nonforfeiture and valuation
				purposes.
(b) Subject to the
				conditions stated in this chapter, the 2001 CSO Mortality Table shall be used
				as the minimum nonforfeiture standard and the minimum valuation standard for
				policies issued on and after January 1, 2009.
(c) For each policy form with separate rates
				for smokers and nonsmokers a company may use the 2001 CSO Mortality Tables in
				one of the following ways:
(1) The 2001 CSO
				Composite Mortality Tables as the minimum nonforfeiture standard and the
				minimum valuation standard.
(2) The
				2001 CSO Composite Mortality Tables as the minimum nonforfeiture standard and
				to determine the minimum reserves required by section 301 of the act
				(40
				P. S. §
											71) and the 2001 CSO Smoker and
				Nonsmoker Mortality Tables as the minimum valuation standard to determine the
				additional minimum reserves, if any, required by section 303 of the act
				(40
				P. S. §
											73).
(3) The 2001 CSO Smoker and Nonsmoker
				Mortality Tables as the minimum nonforfeiture standard and the minimum
				valuation standard.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84d - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS AND THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 84d.3a - 2001 CSO Preferred Class Structure Mortality Table

Current through Register Vol. 54, No. 28, July 13, 2024
(a) At the election of the company, for each
				calendar year of issue, for any one or more specified plans of insurance and
				subject to satisfying the conditions stated in this chapter, the 2001 CSO
				Preferred Class Structure Mortality Table may be substituted in place of the
				2001 CSO Smoker or Nonsmoker Mortality Table as the minimum valuation standard
				for policies issued on or after January 1, 2007. For policies issued on and
				after January 1, 2004, and prior to January 1, 2007, these tables may be
				substituted as the minimum valuation standard with the consent of the
				Commissioner subject to the conditions of subsections (b)-(g). In determining
				consent, the Commissioner may rely on the consent of the chief insurance
				regulatory official of the company's state of domicile. Prior to that election,
				the company shall demonstrate to the satisfaction of the Commissioner that at
				least 20% of the business to be valued on this table is in one or more of the
				preferred classes.
(b) For each
				policy form with separate rates for preferred and standard nonsmokers, a
				company may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and
				Residual Standard Nonsmoker Tables to substitute for the 2001 CSO Nonsmoker
				Mortality Tables as the minimum valuation standard. At the time of election and
				annually thereafter, except for business valued using the Residual Standard
				Nonsmoker Table, the company shall provide the Commissioner a certification
				from the appointed actuary of the following:
(1) For each class, the present value of
				death benefits over the next 10 years after the valuation date using
				anticipated mortality experience without recognition of mortality improvement
				beyond the valuation date is less than the present value of death benefits
				using the valuation basic table corresponding to the valuation table used for
				that class.
(2) For each class, the
				present value of death benefits over the future life of the contracts using
				anticipated mortality experience without recognition of mortality improvement
				beyond the valuation date is less than the present value of death benefits
				using the valuation basic table corresponding to the valuation table used for
				that class.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84d - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS AND THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 84d.5 - Gender-blended tables

Current through Register Vol. 54, No. 28, July 13, 2024
(a) For any
				ordinary life insurance policy delivered or issued for delivery in this
				Commonwealth on and after January 1, 2004, that utilizes the same premium rates
				and charges for male and female lives or is issued in circumstances when
				applicable law does not permit distinctions on the basis of gender, a mortality
				table that is a blend of the 2001 CSO Mortality Table (M) and the 2001 CSO
				Mortality Table (F) may, at the option of the company for each policy form, be
				substituted for the 2001 CSO Mortality Table as the minimum nonforfeiture
				standard. The blended tables may not be used as the minimum valuation
				standard.
(b) If blended tables are
				used as the minimum nonforfeiture standard, the company shall choose from among
				the blended tables developed by the American Academy of Actuaries CSO Task
				Force and adopted by the NAIC in December 2002.
This section cited in 7 Pa. Code §
											84d.1 (relating to
					 purpose).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84d - RECOGNITION OF THE 2001 CSO MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES AND NONFORFEITURE BENEFITS AND THE 2001 CSO PREFERRED CLASS STRUCTURE MORTALITY TABLE FOR USE IN DETERMINING MINIMUM RESERVE LIABILITIES › Section 84d.6 - Permitted usage

Current through Register Vol. 54, No. 28, July 13, 2024
In and of itself, it is not a violation of the Unfair
				  Insurance Practices Act (40 P. S. §§
										1171.1-1171.15) for a company to determine
				  nonforfeiture benefits for the same type of policy of life insurance on both a
				  sex-distinct and sex-neutral basis.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › GENERAL PROVISIONS › Section 85.1 - 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:
Act
-The Insurance Company Law of 1921
					 (40
					 P. S. §§
											341-991).
Agent
-A person, copartnership or
					 corporation licensed under the laws of the Commonwealth as a life insurance
					 agent.
Department
-The Insurance Department of the
					 Commonwealth.
Separate account
-An account established
					 under section 406.2(a) of the act (40 P. S. §
											506.2(a)).
Variable accumulation annuity contract
-An
					 annuity policy or contract, other than a variable annuity, under which amounts
					 accumulated for the purchase of a fixed annuity or a fixed annuity and a
					 variable annuity, where the accumulation values vary according to the
					 investment experience of a separate account. The fixed annuity shall be
					 purchased at rates at least as favorable to the policyholder as those stated in
					 the variable accumulation annuity contract.
Variable annuity contract
-Any policy or
					 contract which provides for deferred or immediate annuity payments, the amount
					 of which, after such payments have commenced, varies according to the
					 investment experience of a separate account maintained by the insurer for the
					 purpose of funding this contract.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › GENERAL PROVISIONS › Section 85.2 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
The purpose of this chapter is to provide for the
					 implementation of section 406.2 of the act (40 P. S. §
											506.2) prescribing the qualifications for
					 companies or fraternal benefit societies to issue variable annuity contracts
					 and variable accumulation annuity contracts in this Commonwealth, the
					 requirements for the form and filing of such contracts and related materials,
					 and the qualifications for agents to offer such contracts for sale in this
					 Commonwealth.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › GENERAL PROVISIONS › Section 85.3 - Foreign and alien life insurance companies

Current through Register Vol. 54, No. 28, July 13, 2024
(a) If the statutes or regulations of the
				  place of domicile of a foreign or alien insurance company prevent compliance
				  with any specific provision of this chapter, such insurance company shall so
				  advise the Department in writing.
(b) If the laws or regulations of the place
				  of domicile provide a degree of protection to the policyholders and the public
				  which, in the opinion of the Department, is substantially equal to that
				  provided by the provisions of this chapter, the Department, to the extent
				  deemed appropriate by it, may consider compliance with such laws or regulations
				  to be compliance with this chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › GENERAL PROVISIONS › Section 85.4 - Departmental review

Current through Register Vol. 54, No. 28, July 13, 2024
The Commissioner is authorized to cause frequent reviews to
					 be conducted to measure compliance with the receiving and investment
					 requirements set forth in §
										85.40(b)(1) and
					 (4) (relating to permissible guaranteed
					 benefits) by any insurer issuing variable annuity or variable accumulation
					 annuity contracts with guaranteed benefits.
(1) To the extent that reserves are
				  improperly computed or maintained and that applicable separate account assets
				  are improperly invested, a liability will be established by the Commissioner in
				  an offsetting amount for purposes of evaluating financial condition.
(2) Subject insurers shall not claim value as
				  an admitted asset in any financial statement to any asset which is invested
				  contrary to §
										85.40(b)(4).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › QUALIFICATION TO ISSUE VARIABLE ANNUITY CONTRACTS › Section 85.11 - Licensing

Current through Register Vol. 54, No. 28, July 13, 2024
No company shall deliver or issue for delivery variable
					 annuity contracts or variable accumulation annuity contracts within this
					 Commonwealth, unless the following requirements are met:
(1) The company is licensed and authorized to
				  transact the business of life insurance in this Commonwealth.
(2) The Department is satisfied that the
				  condition or method of operation of the company in connection with the issuance
				  of such contracts will not render its operation hazardous to the public or to
				  its policyholders. In this connection, the Department may consider:
(i) The history and financial condition of
				  the company, including the number of years the company has been transacting the
				  business of life insurance in this Commonwealth.
(ii) The character, responsibility and
				  general fitness of the officers and directors of the company.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › QUALIFICATION TO ISSUE VARIABLE ANNUITY CONTRACTS › Section 85.12 - Years in business and capital surplus

Current through Register Vol. 54, No. 28, July 13, 2024
The Department may prohibit the delivery or issuance of
					 variable annuity contracts or variable accumulation annuity contracts within
					 this Commonwealth by any company which has not been transacting the business of
					 life insurance in this Commonwealth for a period of at least 5 years, or has
					 capital and surplus, if a stock company, or an amount of surplus, if a mutual
					 company, of less than $1.5 million.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › QUALIFICATION TO ISSUE VARIABLE ANNUITY CONTRACTS › Section 85.13 - Wholly-owned subsidiaries

Current through Register Vol. 54, No. 28, July 13, 2024
A company which is a wholly-owned subsidiary of a life
					 insurance company which has been transacting the business of life insurance in
					 this Commonwealth for a period of at least 5 years may at the discretion of the
					 Department be deemed to have satisfied the requirements of §
										85.11(2) 
					 (relating to licensing) if either the subsidiary or the life insurance company
					 satisfies the requirements. Any wholly-owned subsidiary qualifying to issue
					 variable annuity contracts or variable accumulation annuity contracts by virtue
					 of this section may continue to issue such contracts only for so long as it
					 continues to remain a wholly-owned subsidiary of the parent company through
					 which it was deemed to have satisfied the applicable requirements of this
					 section, unless such subsidiary has itself satisfied the
					 requirements.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › QUALIFICATION TO ISSUE VARIABLE ANNUITY CONTRACTS › Section 85.14 - Material to be filed

Current through Register Vol. 54, No. 28, July 13, 2024
Before any company delivers or issues for delivery variable
					 annuity contracts or variable accumulation annuity contracts, or both, within
					 this Commonwealth it shall, in addition to complying with the applicable laws
					 of this Commonwealth and the provisions of this chapter, file with the
					 Department all of the following material:
(1) A certified copy of a resolution adopted
				  by its board of directors establishing one or more separate accounts. Any
				  amendments to this resolution or any resolution superseding it shall
				  immediately be filed with the Department.
(2) A copy of the latest Report of
				  Examination of the company and Annual Statement if the company has not been
				  previously admitted.
(3) A general
				  description of the type of variable annuity contracts and variable accumulation
				  annuity contracts to be issued and, a statement of reserving procedures,
				  investment objectives of each separate account that will be used, and two
				  copies of any final prospectus registered with the Securities and Exchange
				  Commission. If no such prospectus is available a statement of all applicable
				  sales and administrative expenses shall be filed with the Department.
(4) A copy of any management or service
				  contract entered into between the company and a third party or between any
				  separate account and a third party, the terms of which contain provisions for
				  the third party to provide managerial, investment, or sales services to any
				  separate account. Any such contract entered into following the initial filing
				  shall also be filed with the Department.
(5) Biographical statements concerning
				  officers and directors of the insurance company or separate account and, if
				  requested by the Department, of the officers and directors of the management
				  company.
(6) Any other information
				  as may be required by the Department.
(7) If assets are to be maintained in the
				  separate account in excess of the reserve liability for the variable benefits
				  funded through the separate account, a clear explanation of the purposes for
				  which such additional assets are maintained and a statement of the basis which
				  the company will use to determine the amounts of additional assets to be
				  maintained for these purposes.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.21 - Examination

Current through Register Vol. 54, No. 28, July 13, 2024
The investments and operation of any separate account
					 established in connection with any variable annuity contract or a variable
					 accumulation annuity contract shall be examined periodically by the Department
					 in accordance with the applicable laws of the Commonwealth.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.22 - Reserve liability

Current through Register Vol. 54, No. 28, July 13, 2024
The reserve liability for variable annuity contracts shall
					 be established pursuant to the requirements of the standard valuation law,
					 section 301 of the act (40 P. S. §
											71), in accordance with actuarial procedures
					 that recognize the variable nature of the benefits provided.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.23 - Income, gains, or losses

Current through Register Vol. 54, No. 28, July 13, 2024
Any income, gains, or losses realized or unrealized on each
					 separate account shall be credited to or charged against the amount allocated
					 to such separate account without regard to the other income, gains, or losses
					 of the company. However, a variable annuity contract on a group basis or a
					 variable accumulation annuity contract on a group basis may provide for the
					 interdependence of two or more separate accounts established in conjunction
					 with such contract.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.24 - Balancing of account

Current through Register Vol. 54, No. 28, July 13, 2024
Any deficit which may arise in any separate account by
					 virtue of mortality experience guaranteed by the life insurance company or by
					 expense costs so guaranteed shall be adjusted by transfers from unallocated
					 surplus or contingency reserves not required by law to such separate account so
					 that the assets of such account shall at least be equal to the
					 liabilities.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.25 - Sale, exchange or transfer between accounts

Current through Register Vol. 54, No. 28, July 13, 2024
(a) No sale, exchange or other transfer of
				  assets may be made by a company between any of its separate accounts or between
				  any other investment account and one or more of its separate accounts, except a
				  transfer for the following purposes:
(1)
				  Establishing a separate account.
(2) Conducting the business of a separate
				  account in accordance with the provisions of a variable annuity contract or a
				  variable accumulation annuity contract.
(3) Making necessary adjustments for
				  mortality experience or expense costs.
(4) Transferring to the general account any
				  amounts in excess of the reserve liability held in the separate
				  account.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.26 - Annual statements

Current through Register Vol. 54, No. 28, July 13, 2024
Each life insurance company shall, at the time of its
					 annual statement, submit a separate annual statement for the business of its
					 separate accounts. This statement shall be in the form prescribed by the
					 Department, and shall include details as to all of the income, disbursements,
					 assets and liability items associated with any separate account. The Department
					 may, in addition, require of a company from time to time such other statements
					 concerning the business of its separate accounts as the Department may deem
					 necessary.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 85 - VARIABLE ANNUITY AND VARIABLE ACCUMULATION ANNUITY CONTRACTS › SEPARATE ACCOUNTS › Section 85.27 - Statements to policyholders

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Any
				  company issuing individual variable annuity contracts or individual variable
				  accumulation annuity contracts shall mail to the contract holder, at least once
				  in each contract year after the first year at his last known address, a
				  statement or statements reporting the investments held in the separate account
				  and, in the case of contracts under which payments have not yet commenced, a
				  statement reporting as of a date not more than three months previous to the
				  date of mailing one of the following:
(1) The
				  number of accumulation units credited to such contracts and the dollar value of
				  a unit.
(2) The value of the
				  account of the contract holder.
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 85.31 - Filing requirements

Current through Register Vol. 54, No. 28, July 13, 2024
The filing requirements applicable to variable annuity
					 contracts and variable accumulation annuity contracts shall be those filing
					 requirements otherwise applicable under existing statutes and regulations of
					 the Commonwealth with respect to individual and group life insurance and
					 annuity contract form filings, to the extent appropriate.
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 85.32 - Statement indicating variability of payments

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Each application form for an individual
				  variable annuity contract shall contain a clear statement, prominently set
				  forth immediately preceding the signature line, denoting that the contractual
				  payments or values under the variable annuity provisions of the contract being
				  applied for are variable and are not guaranteed as to fixed dollar
				  amounts.
(b) Each application for
				  an individual variable accumulation annuity contract shall contain a clear
				  statement, prominently set forth immediately preceding the signature line,
				  denoting that the accumulation values under the variable accumulation
				  provisions of the contract being applied for are variable and are not
				  guaranteed as to fixed dollar amounts.
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 85.33 - Statement of valuation procedure and fluctuation of value

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Any variable annuity contract delivered
				  or issued for delivery in this Commonwealth shall contain clear statements
				  denoting the following:
(1) The essential
				  features of the procedure to be used by the company in determining the dollar
				  amount of such variable benefits or other variable contractual payments or
				  variable values to be paid the contract holder.
(2) The fact that such benefits or other
				  contractual payments or values may decrease or increase with investment
				  experience, and are not guaranteed as to fixed dollar amounts.
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 85.34 - Illustrations of payable benefits

Current through Register Vol. 54, No. 28, July 13, 2024
Illustrations of benefits payable under any contract
					 providing benefits payable in variable amounts or accumulation values of
					 variable amounts shall not include projections of past investment experience
					 into the future, nor shall they attempt predictions of future investment
					 experience of the Separate Account, provided that this is not intended to
					 prohibit the use of hypothetical assumed rates of return, clearly designated as
					 such, to illustrate possible levels of annuity payments.
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 85.35 - Standard policy provisions

Current through Register Vol. 54, No. 28, July 13, 2024
No individual variable annuity contract or individual
					 variable accumulation annuity contract calling for the payment of periodic
					 stipulated payments or premiums shall be delivered or issued for delivery in
					 this Commonwealth unless it contains provisions which, in the opinion of the
					 Department, are at least as favorable as the following:
(1) A minimum period of grace of 30 days or
				  of one month, within which any stipulated payment or premium to the insurer
				  falling due after the first may be made, during which period of grace the
				  contract shall continue in force. The contract shall also 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
				  contract arising therefrom.
(2) At
				  any time within one year from the date of default in making periodic stipulated
				  payments or premiums 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 shall also 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
				  therefrom.
(3) The specific options
				  available in the event of default in a payment, which 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 being
				  determined by applying the value of the contract at the annuity commencement
				  date in accordance with the terms of the contract.