reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.7 - Duties of insurers with respect to direct response sales

Current through Register Vol. 54, No. 28, July 13, 2024
(a) If in the
				solicitation of a direct response sale, the insurer did not propose the
				replacement and a replacement is involved, the insurer shall:
(1) Send to the applicant with the policy a
				Notice Regarding Replacement of Life Insurance and Annuities in the form as
				described in Appendix A or Appendix B (relating to notice regarding replacement
				of life insurance and annuities) or other substantially similar form filed and
				accepted prior to use by the Commissioner. In such instances, the insurer may
				delete the last sentence and the references to signatures from Appendix A
				without having to refile the form and obtain acceptance prior to use by the
				Commissioner.
(2) Comply with the
				requirements of §
										81.6(d) (relating
				to duties of insurers that use agents or brokers).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.8 - Penalties

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Failure to
				comply with this chapter, after an administrative hearing as provided by
				statute, may subject an agent or broker to penalties provided in section 639 of
				The Insurance Department Act of one thousand nine hundred and twenty-one
				(40
				P. S. §
										279). Failure to comply shall be
				considered a separate and distinct violation and may not prevent or be
				considered in lieu of a proceeding against an agent or broker for violation of
				section 637 or section 638 of The Insurance Department Act of one thousand nine
				hundred and twenty-one (40 P. S. §
										277 or § 278). Failure to comply may,
				for purposes of section 639 of The Insurance Department Act of one thousand
				nine hundred and twenty-one, be considered as conduct that would disqualify an
				agent or broker from initial issuance of a license under section 603 and 622 of
				The Insurance Department Act of one thousand nine hundred and twenty-one
				(40
				P. S. §§
										233 and
				252).
(b) Failure to comply with this chapter,
				after an administrative hearing as provided by statute, may subject an
				insurance company, association or exchange, its members, officers, directors or
				attorney-in-fact, to penalties provided in section 350 of The Insurance Company
				Law of 1921 (40 P. S. §
										475). Failure
				to comply shall be considered a separate and distinct violation and may not
				prevent or be considered in lieu of a proceeding against an insurance company,
				association or exchange, its members, officers, directors or attorney-in-fact
				for violation of section 347, 348 or 349 of The Insurance Company Law of 1921
				(40
				P. S. §
										472, § 473 or §
				474).
(c) In addition to
				subsections (a) and (b), failure to make the disclosure outlined in this
				chapter may be considered a violation of the Unfair Insurance Practices Act
				(40
				P. S. §§
										1171.1-1171.15).
(d) A policyholder has the right to replace
				an existing policy after indicating on the application that replacement is not
				by intention. Patterns of replacement by policyholders of the same agent,
				broker or company shall be considered prima facie evidence of the knowledge of
				the agent, broker or company that replacement was intended in connection with
				the transaction. Patterns of replacement shall be considered violations of this
				chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Appendix B - NOTICE REGARDING REPLACEMENT OF LIFE INSURANCE AND ANNUITIES

Current through Register Vol. 54, No. 28, July 13, 2024
Definition: Replacement is any transaction where, in
				  connection with the purchase of new insurance or annuity coverage, you lapse,
				  surrender, convert to paid-up insurance, place on extended term, reduce
				  benefits or term of coverage, reduce cash value or borrow all or part of the
				  policy loan values on an existing insurance policy or annuity.
In connection with the purchase of this coverage, IF YOU HAVE
				  REPLACED OR INTEND TO REPLACE your present life insurance or annuity coverage,
				  you should be certain that you understand all of the relevant factors
				  involved.
You should BE AWARE that you may be required to provide
evidence of insurability
and
(1) If your HEALTH condition has CHANGED since the
				  application was taken on your present policies, you may be required to pay
				  ADDITIONAL PREMIUMS under the NEW POLICY, or be DENIED COVERAGE.
(2) Your present occupation or activities
may not be
				  covered or could require additional premiums.
(3) The INCONTESTABLE and SUICIDE CLAUSE will begin anew in a
				  new policy. This could RESULT in a
CLAIM under the new policy BEING
				  DENIED that would otherwise have been paid.
(4) Current law DOES NOT require your present insurer(s) to
				  REFUND any premiums.
(5) It may be to your advantage to OBTAIN INFORMATION
				  regarding your existing policies
from the insurer or agent from whom
				  you purchased the policy. Your existing company will provide this information
				  to you.
CAUTION: If after studying the information available to you,
				  you decide to replace your existing life insurance or annuity coverage with our
				  policy, you are urged not to take any action to terminate or alter your
				  existing coverage until after you have been issued the new policy, examined it
				  and found it to be acceptable to you. If you should terminate or otherwise
				  materially alter your existing coverage and fail to qualify for the life
				  insurance or annuity coverage for which you have applied, you may find yourself
				  unable to purchase other life insurance or annuity coverage or be able to
				  purchase it only at substantially higher rates.
_________________________
INSURANCE COMPANY INSURER'S MAILING DATE:
				  ______________________________________
This appendix cited in 31 Pa. Code §
											81.7 (relating to duties of
					 insurers with respect to direct response
					 sales).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.11 - Scope

Current through Register Vol. 54, No. 28, July 13, 2024
The requirements listed in §§
										82.12-82.17 are applicable to insurers
					 either seeking authority to issue variable life insurance in this Commonwealth
					 or having authority to issue variable life insurance in this
					 Commonwealth.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.12 - Licensing and approval to do business in this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
An insurer may not deliver or issue for delivery in this
					 Commonwealth a variable life insurance policy unless the following conditions
					 have been met:
(1) The insurer is
				  licensed or organized to do a life insurance business in this
				  Commonwealth.
(2) The insurer has
				  obtained the written approval of the Commissioner for the issuance of variable
				  life insurance policies in this Commonwealth. The Commissioner will grant
				  written approval only after finding that the following have been met:
(i) The plan of operation for the issuance of
				  variable life insurance policies is not unsound.
(ii) The general character, reputation and
				  experience of the management and those persons of firms proposed to supply
				  consulting, investment, administrative or custodial services to the insurer are
				  such as to reasonably assure competent operation of the variable life insurance
				  business of the insurer in this Commonwealth.
(iii) The present and foreseeable future
				  financial condition of the insurer and its method of operation in connection
				  with the issuance of such policies is not likely to render its operation
				  hazardous to the public or its policyholders in this Commonwealth. The
				  Commissioner will consider, among other things:
(A) The history of the operation and
				  financial condition of the insurer.
(B) The qualifications, fitness, character,
				  responsibility, reputation and experience of the officers and directors and
				  other management of the insurer and of those persons or firms proposed to
				  supply consulting, investment, administrative or custodial services to the
				  insurer.
(C) The applicable law and
				  regulations under which the insurer is authorized in its state of domicile to
				  issue variable life insurance policies, the state of entry of an alien insurer
				  being deemed its state of domicile for this purpose.
(D) If the insurer is a subsidiary of or is
				  affiliated by common management or ownership with another company, its
				  relationship to the other company and the degree to which the requesting
				  insurer, as well as the other company, meets the standards set forth in this
				  section.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.13 - Filing for approval to do business in this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
The Commissioner may require that an insurer, before it
					 delivers or issues for delivery a variable life insurance policy in this
					 Commonwealth, file with the Department the following information for the
					 consideration of the Commissioner in making the determination required by
					 §
										82.12(2)
					 (relating to licensing and approval to do business in this
					 Commonwealth):
(1) Copies of and a
				  general description of the variable life insurance policies, applications and
				  riders it intends to issue.
(2) A
				  general description of the methods of operation of the variable life insurance
				  business of the insurer, including methods of distribution of policies and the
				  names of those persons or firms proposed to supply consulting, investment,
				  administrative, custodial or distribution services to the insurer.
(3) With respect to a separate account
				  maintained by an insurer for a variable life insurance policy, a statement of
				  the investment policy the insurer intends to follow for the investment of the
				  assets held in the separate account and a statement of the procedures for
				  changing the investment policy. The statement of investment policy shall
				  include a description of the investment objective intended for the separate
				  account.
(4) A description of any
				  investment advisory services contemplated as required by §
										82.51 (relating to investment
				  advisory services).
(5) A copy of
				  the statutes and regulations of the state of domicile of the insurer under
				  which it is authorized to issue variable life insurance policies.
(6) Biographical data with respect to
				  officers and directors of the insurer on the National Association of Insurance
				  Commissioners Uniform Biographical Data Form.
(7) A statement of the insurer's actuary
				  describing the mortality and expense risks which the insurer will bear under
				  the policy.
This section cited in 31 Pa. Code §
												82.11 (relating to scope); and 31
						Pa. Code §
												82.47 (relating to separate
						account investment policy).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.14 - Standards of suitability

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  insurer seeking approval to enter into the variable life insurance business in
				  this Commonwealth shall establish, maintain and file, at the discretion of the
				  Commissioner, a written statement specifying the standards of suitability to be
				  used by the insurer.
(b) The
				  standards of suitability shall specify that no recommendation shall be made to
				  an applicant to purchase a variable life insurance policy and that no variable
				  life insurance policy shall be issued in the absence of reasonable grounds to
				  believe that the purchase of the policy is suitable for the applicant on the
				  basis of information furnished after reasonable inquiry of the applicant
				  concerning the applicant's insurance and investment objectives, financial
				  situation and needs and other information known to the insurer or to the agent
				  making the recommendation.
This section cited in 31 Pa. Code §
												82.11 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.15 - Use of sales materials

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  insurer authorized to transact variable life insurance business in this
				  Commonwealth may not use sales material, advertising material or descriptive
				  literature or other materials in connection with its variable life insurance
				  business in this Commonwealth which is false, misleading, deceptive or
				  inaccurate.
(b) For purposes of
				  this chapter, variable life insurance sales material, advertising material or
				  descriptive literature includes, but is not limited to:
(1) Printed and published material,
				  audio-visual material and descriptive literature of an insurer used in direct
				  mail, newspapers, magazines, radio scripts, television and film scripts,
				  billboards and similar displays for variable life insurance.
(2) Descriptive literature and sales aids
				  used to sell variable life insurance by or on behalf of an insurer or a person
				  authorized to sell variable life insurance for presentation to members of the
				  insurance buying public, including but not limited to circulars, leaflets,
				  booklets, depictions, illustrations and form letters.
(3) Prepared sales talks, presentations and
				  material for use in the sale of variable life insurance by a person authorized
				  to sell variable life insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.16 - Requirements applicable to contractual services

Current through Register Vol. 54, No. 28, July 13, 2024
A material contract between an insurer and suppliers of
					 consulting, investment, administrative, sales, marketing, custodial or other
					 services with respect to variable life insurance operations shall be in writing
					 and provide that the supplier of the services furnish the Commissioner with
					 information or reports in connection with the services which the Commissioner
					 may request to ascertain whether the variable life insurance operations of the
					 insurer are being conducted in a manner consistent with this chapter and other
					 applicable laws or regulations.
This section cited in 31 Pa. Code §
												82.11 (relating to
						scope).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF INSURER TO ISSUE VARIABLE LIFE INSURANCE › Section 82.17 - Reports to the Commissioner

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  insurer authorized to transact the business of variable life insurance in this
				  Commonwealth shall submit to the Commissioner, in addition to other materials
				  which may be required by this chapter or other applicable laws or regulations,
				  the following documents:
(1) An annual
				  statement of the business of its separate accounts in a form as may be
				  prescribed by the National Association of Insurance Commissioners.
(2) Prior to use in this Commonwealth,
				  information furnished to applicants as provided for in §
											82.61 (relating to information for
				  applicants).
(3) Prior to use in
				  this Commonwealth, the form of the reports to policyholders as provided for in
				  §§
											82.72-82.74 (relating to policy
				  statements; separate account statements; and warning statements for flexible
				  premium policies).
(4) Additional
				  information concerning its variable life insurance operations or its separate
				  accounts as the Commissioner deems necessary.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › INSURANCE POLICY REQUIREMENTS › Section 82.21 - Insurance policy qualification

Current through Register Vol. 54, No. 28, July 13, 2024
The Commissioner will not approve a variable life insurance
					 form filed under this chapter unless it conforms to the requirements of
					 §§ 82.22-82.26.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › INSURANCE POLICY REQUIREMENTS › Section 82.22 - Filing of variable life insurance policies

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Variable life insurance policies and
				  riders, endorsements, applications and other documents which are to be attached
				  to and made a part of the policy and which relate to the variable nature of the
				  policy shall be filed with and approved by the Commissioner prior to delivery
				  or issuance for delivery in this Commonwealth.
(b) The procedures and requirements for the
				  filing and approval shall be, to the extent appropriate and not inconsistent
				  with this chapter, the same as those otherwise applicable to other life
				  insurance policies.
(c) The
				  Commissioner may approve variable life insurance policies and related forms
				  with provisions the Commissioner deems to be not less favorable to the
				  policyholder and the beneficiary than those required by this chapter.
This section cited in 31 Pa. Code §
												82.21 (relating to insurance
						policy qualification).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › INSURANCE POLICY REQUIREMENTS › Section 82.24 - Mandatory policy provisions

Current through Register Vol. 54, No. 28, July 13, 2024
A variable life insurance policy filed for approval in this
					 Commonwealth shall contain at least the following provisions:
(1) The cover page of each policy containing
				  the following:
(i) A prominent statement, in
				  either contrasting color or in boldface type, that the amount or duration of
				  the death benefit may be variable or fixed under specified
				  conditions.
(ii) A prominent
				  statement, in either contrasting color or in boldface type, that cash values
				  may increase or decrease in accordance with the experience of the separate
				  account subject to specified minimum guarantees.
(iii) A statement describing minimum death
				  benefits required under §
											82.23(2)
				  (relating to mandatory policy benefit and design requirements).
(iv) The method or a reference to the policy
				  provision which describes the method for determining the amount of insurance
				  payable at death.
(v) A captioned
				  provision prominently printed on the first page of the policy which provides
				  that the policyholder may return the variable life insurance policy within at
				  least 10 days of receipt of the policy by the policyholder and receive a refund
				  of the premium payments for the policy.
(vi) Other items currently required for fixed
				  benefit life insurance policies and which are consistent with this
				  chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › INSURANCE POLICY REQUIREMENTS › Section 82.26 - Other policy provisions

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				  following provisions may in substance be included in a variable life insurance
				  policy or related form delivered or issued for delivery in this Commonwealth:
(1) An exclusion for suicide within 2 years
				  of the issue date of the policy. To the extent of the increased death benefits
				  only, the policy may provide an exclusion for suicide within 2 years of an
				  increase in death benefits which results from an application of the owner
				  subsequent to the policy issue date.
(2) Incidental insurance benefits offered on
				  a fixed or variable basis.
(3) A
				  provision allowing the policyholder to elect, in writing, in the application
				  for the policy or thereafter, an automatic premium loan on a basis not less
				  favorable than that required of policy loans under §
											82.25 (relating to policy loan
				  provisions); except that a restriction that no more than two consecutive
				  premiums can be paid under this provision may be imposed.
(4) A provision allowing the policyholder to
				  make partial withdrawals. The partial withdrawal provision shall be constructed
				  so that a variable life insurance policyholder who has not exercised the
				  provision is not disadvantaged by the exercise thereof.
(5) Other policy provisions approved by the
				  Commissioner.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › RESERVE LIABILITIES FOR VARIABLE LIFE INSURANCE › Section 82.31 - Variable life

Current through Register Vol. 54, No. 28, July 13, 2024
Reserve liabilities for variable life insurance policies
					 shall be established under section 301 of The Insurance Department Act of one
					 thousand nine hundred and twenty-one (40 P. S. §
											71) in accordance with actuarial procedures
					 that recognize the variable nature of the benefits provided and mortality
					 guarantees.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › RESERVE LIABILITIES FOR VARIABLE LIFE INSURANCE › Section 82.34 - Other reserve liabilities

Current through Register Vol. 54, No. 28, July 13, 2024
Reserve liabilities for fixed incidental insurance benefits
					 and guarantees associated with variable incidental insurance benefits shall be
					 maintained in the general account and reserve liabilities for variable aspects
					 of the variable incidental insurance benefits shall be maintained in a separate
					 account in amounts determined in accordance with the actuarial procedures
					 appropriate to the benefits.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.41 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
The requirements in §§
										82.42-82.51 apply to the establishment
					 and administration of variable life insurance separate accounts by a domestic
					 insurer.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.42 - Establishment and administration

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  A domestic insurer issuing variable life insurance shall establish one or more
				  separate accounts under section 406.2 of the act (40 P. S. §
											506.2).
(b) If no law or other regulation provides
				  for the custody of separate account assets and if the insurer is not the
				  custodian of the separate account assets, contracts for custody of the assets
				  shall be in writing and the Commissioner has authority to review and approve
				  both the terms of the contract and the proposed custodian prior to the transfer
				  of custody.
(c) The insurer may
				  not, without the prior written approval of the Commissioner, employ in a
				  material connection with the handling of separate account assets a person who:
(1) Within the last 10 years has been
				  convicted of a felony or a misdemeanor arising out of the conduct of the person
				  involving embezzlement, fraudulent conversion or misappropriation of funds or
				  securities or involving violation of
				  18 U.S.C. §§
												1341,
				  1342 or
				  1343.
(2) Within the last 10 years has been found
				  by any state regulatory authority to have violated or has acknowledged
				  violation of any state insurance law involving fraud, deceit or knowing
				  misrepresentation; or
(3) Within
				  the last 10 years has been found by Federal or State regulatory authorities to
				  have violated or has acknowledged violation of Federal or State securities laws
				  involving fraud, deceit or knowing misrepresentation.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.43 - Amounts in separate account

Current through Register Vol. 54, No. 28, July 13, 2024
The insurer shall maintain in each separate account assets
					 with a fair market value at least equal to the greater of the valuation
					 reserves for the variable portion of the variable life insurance policies or
					 the benefit base for the policies.
This section cited in 31 Pa. Code §
												82.41 (relating to
						applicability).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.44 - Investments by the separate account

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Sales, exchanges or other transfers of assets may be made by an insurer between
				  its separate accounts or between another investment account and one or more of
				  its separate accounts if the transfer into or from a separate account is made
				  by one of the following methods:
(1) A
				  transfer of cash.
(2) A transfer of
				  assets having a valuation which could be readily determined in the
				  marketplace.
(3) Other transfers
				  the Commissioner may approve.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.45 - Limitations on ownership

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A
				  separate account may not purchase or otherwise acquire the securities of an
				  issuer, other than securities issued or guaranteed as to principal and interest
				  by the United States, if, immediately after the purchase or acquisition, the
				  value of the investment, together with prior investments of the separate
				  account in the security valued as required by this chapter, would exceed 10% of
				  the value of the assets of the separate account. The Commissioner may waive
				  this limitation in writing if the Commissioner believes the waiver will not
				  render the operation of the separate account hazardous to the public or the
				  policyholders in this Commonwealth.
(b) No separate account may purchase or
				  otherwise acquire the voting securities of an issuer if, as a result of the
				  acquisition, the insurer and its separate accounts, in the aggregate, will own
				  more than 10% of the total issued and outstanding voting securities of the
				  issuer. The Commissioner may waive this limitation in writing if the
				  Commissioner believes the waiver will not render the operation of the separate
				  account hazardous to the public or the policyholders in this Commonwealth or
				  jeopardize the independent operation of the issuer of the securities.
(c) The percentage limitation specified in
				  subsection (a) does not preclude the investment of the assets of separate
				  accounts in shares of investment companies registered under the Investment
				  Company Act of 1940 (15
				  U.S.C.A. §§
											80a-1-80 a-64) or other
				  pools of investment assets if the investments and investment policies of the
				  investment companies or asset pools comply substantially with §
										82.44 (relating to investments by
				  the separate account) and other applicable portions of this chapter.
This section cited in 31 Pa. Code §
												82.41 (relating to
						applicability).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.46 - Valuation of separate account assets

Current through Register Vol. 54, No. 28, July 13, 2024
Investments of the separate account shall be valued at
					 their market value on the date of valuation, or at amortized cost if it
					 approximates market value. If there is no readily available market value, then
					 the investments shall be valued as provided under the terms of the contract,
					 the prospectus for the contract, rules of the Securities and Exchange
					 Commission or rules or other written agreement applicable to the separate
					 account.
This section cited in 31 Pa. Code §
												82.41 (relating to
						applicability).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.47 - Separate account investment policy

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  The investment policy of a separate account operated by a domestic insurer
				  filed under §
										82.13(3)
				  (relating to filing for approval to do business in this Commonwealth) may not
				  be changed without first filing the change with the Commissioner.
(b) A change filed under this section shall
				  be effective 60 days after the date it was filed with the Commissioner, unless
				  the Commissioner notifies the insurer before the end of the 60-day period of
				  the disapproval of the proposed change. The Commissioner may, after notice and
				  public hearing, disapprove a change that has become effective under this
				  section.
(c) The Commissioner may
				  disapprove the change if the Commissioner determines that the change would be
				  detrimental to the interests of the policyholders participating in the separate
				  account.
This section cited in 31 Pa. Code §
												82.41 (relating to
						applicability).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.48 - Charges against a separate account

Current through Register Vol. 54, No. 28, July 13, 2024
The insurer shall disclose in writing, prior to or
					 contemporaneously with the delivery of the policy, the charges that may be made
					 against the separate account, including, but not limited to, the following
					 charges:
(1) Taxes or reserves for
				  taxes attributable to investment gains and income of the separate
				  account.
(2) Actual cost of
				  reasonable brokerage fees and similar direct acquisition and sales costs
				  incurred in the purchase or sale of separate account assets.
(3) Actuarially determined costs of
				  insurance, that is, tabular costs and the release of reserves and benefit base
				  consistent with the release of separate account liabilities.
(4) Charges for administrative expenses and
				  investment management expenses, including internal costs attributable to the
				  investment management of assets of the separate account.
(5) A charge, at the rate specified in the
				  policy, for mortality and expense guarantees.
(6) Any amounts in excess of those required
				  to be held in the separate account.
(7) A charge for incidental insurance
				  benefits.
This section cited in 31 Pa. Code §
												82.41 (relating to
						applicability).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.49 - Standards of conduct

Current through Register Vol. 54, No. 28, July 13, 2024
An insurer seeking approval to enter into the variable life
					 insurance business in this Commonwealth shall adopt by formal action of its
					 board of directors a written statement specifying the standards of conduct of
					 the insurer, its officers, directors, employes and affiliates with respect to
					 the purchase or sale of investments of separate accounts. The standards of
					 conduct shall be binding on the insurer and those to whom it refers. A code of
					 ethics meeting the requirements of
					 15 U.S.C. §
											80a-17(j) (relating
					 to transactions of certain affiliated persons and underwriters) and applicable
					 rules and regulations thereunder satisfies the provisions of this
					 section.
This section cited in 31 Pa. Code §
												82.41 (relating to applicability);
						and 31 Pa. Code §
												82.51 (relating to investment
						advisory services).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.50 - Conflicts of interest

Current through Register Vol. 54, No. 28, July 13, 2024
Rules under the insurance laws of the Commonwealth or a
					 regulation applicable to the officers and directors of insurance companies with
					 respect to conflicts of interest also apply to members of a separate account's
					 committee or other similar body.
This section cited in 31 Pa. Code §
												82.41 (relating to
						applicability).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › SEPARATE ACCOUNTS › Section 82.51 - Investment advisory services

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  An insurer may not enter into a contract under which a person undertakes, for a
				  fee, to regularly furnish investment advice to the insurer with respect to any
				  of its separate accounts maintained for variable life insurance policies unless
				  one of the following conditions are met:
(1)
				  The person providing the advice is registered as an investment advisor under
				  15 U.S.C.A. §§
												80b-1-80 b-21 under the
				  Employe Retirement Income Security Act of 1974 (ERISA), the act of September 2,
				  1974 (Pub. L. 93-406, 88 Stat. 829).
(2) The insurer has filed with the
				  Commissioner and continues to file annually the following information and
				  statements concerning the advisory.
(i) The
				  name and form of organization, state of organization and its principal place of
				  business.
(ii) The names and
				  addresses of its partners, officers, directors and persons performing similar
				  functions or, if the investment advisor is an individual, of the
				  individual.
(iii) A written
				  standard of conduct, complying in substance with the requirements of §
												82.49 (relating to standards of
				  conduct), which has been adopted by the investment advisor and is applicable to
				  the investment advisor, its officers, directors and affiliates.
(iv) A statement provided by the proposed
				  advisor as to whether the advisor or a person associated therewith has been
				  convicted within 10 years of a felony or misdemeanor arising out of that
				  person's conduct as an employe, salesman, officer or director of an insurance
				  company, a bank, an insurance agent, a securities broker or an investment
				  advisor, involving embezzlement, fraudulent conversion or misappropriation of
				  funds or securities or involving the violation of
				  18 U.S.C. §§
													1341,
				  1342 or
				  1343 (relating to frauds and
				  swindles; fictitious name or address; or fraud by wire, radio or television);
				  has been permanently or temporarily enjoined by order, judgment or decree of a
				  court of competent jurisdiction from acting as an investment advisor,
				  underwriter, broker or dealer or as an affiliated person or as an employe of an
				  investment company, bank or insurance company or from engaging in or continuing
				  conduct or practice in connection with that activity; has been found by Federal
				  or State regulatory authorities to have willfully violated or has acknowledged
				  willful violation of Federal or State securities laws or State insurance laws
				  or of a rule or regulation under those laws; or has been censured, been denied
				  an investment advisor registration, had a registration as an investment advisor
				  revoked or suspended, or been barred or suspended from being associated with an
				  investment advisor by order of Federal or State regulatory
				  authorities.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › INFORMATION AND APPLICATIONS › Section 82.61 - Information for applicants

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An
				  insurer delivering or issuing for delivery in this Commonwealth variable life
				  insurance policies shall deliver to the applicant for the policy and obtain a
				  written acknowledgment or receipt from the applicant, coincident with or prior
				  to the execution of the application, the following information:
(1) A summary explanation, in nontechnical
				  terms, of the principal features of the policy, including a description of the
				  manner in which the variable benefits will reflect the investment experience of
				  the separate account and the factors which affect such variation. The
				  explanation shall include notices of the provisions required by §
											82.24(1)(v) and
				  (6) (relating to mandatory policy
				  provisions).
(2) A statement of the
				  investment policy of the separate account, including the following:
(i) A description of the investment objective
				  intended for the separate account and the principal types of investments
				  intended to be made.
(ii)
				  Restrictions or limitations on the manner in which the operations of the
				  separate account are intended to be conducted.
(3) A statement of the net investment return
				  of the separate account for each of the last 10 years or a lesser period that
				  the separate account has been in existence.
(4) A statement of the charges levied against
				  the separate account during the previous year.
(5) A summary of the method to be used in
				  valuing assets held by the separate account.
(6) A summary of the Federal income tax
				  aspects of the policy applicable to the insured, the policyholder and the
				  beneficiary.
(7) Illustrations of
				  benefits payable under the variable life insurance contract. The illustrations
				  shall be prepared by the insurer and may not include projections of the past
				  investment experience into the future or attempt predictions of future
				  investment experience. This paragraph does not prohibit the use of hypothetical
				  assumed rates of return to illustrate possible levels of benefits if it is made
				  clear that the assumed rates are hypothetical only.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › INFORMATION AND APPLICATIONS › Section 82.62 - Applications

Current through Register Vol. 54, No. 28, July 13, 2024
The application for a variable life insurance policy shall
					 contain:
(1) A prominent statement
				  that the death benefit may be variable or fixed under specified
				  conditions.
(2) A prominent
				  statement that cash values may increase or decrease in accordance with the
				  experience of the separate account, subject to a specified minimum
				  guarantees.
(3) Questions designed
				  to elicit information which enables the insurer to determine the suitability of
				  variable life insurance for the applicant.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › REPORTS TO POLICYHOLDERS › Section 82.71 - Mailing

Current through Register Vol. 54, No. 28, July 13, 2024
An insurer delivering or issuing for delivery in this
					 Commonwealth variable life insurance policies shall mail each variable life
					 insurance policyholder at his last known address the material in §§
										82.72-82.74 (relating to policy
					 statements; separate account statements; and warning statements for flexible
					 premium policies).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › REPORTS TO POLICYHOLDERS › Section 82.72 - Policy statements

Current through Register Vol. 54, No. 28, July 13, 2024
Within 30 days after each anniversary of the policy, a
					 statement of the cash surrender value, death benefit, a partial withdrawal or
					 policy loan and interest charge, under the policy computed as of the policy
					 anniversary date shall be mailed. The statement may be furnished within 30 days
					 after a specified date in each policy year if the information contained therein
					 is computed as of a date not more than 60 days prior to the mailing of the
					 notice.
(1) This statement shall state
				  that, in accordance with the investment experience of the separate account, the
				  cash values and the variable death benefit may increase or decrease, and this
				  statement shall prominently identify value described therein which may be
				  recomputed prior to the next statement required by this section. If the policy
				  guarantees that the variable death benefit on the next policy anniversary date
				  will not be less than the variable death benefit specified in the statement,
				  the statement shall be modified to so indicate.
(2) For flexible premium policies, the report
				  shall contain a reconciliation of the change since the previous report in cash
				  value and cash surrender value, if different, because of payments made-less
				  deductions for expense charges-withdrawals, investment experience, insurance
				  charges and other charges made against the cash value.
(i) The report shall show the projected cash
				  value and cash surrender value, if different, as of 1 year from the end of the
				  period covered by the report assuming that:
(A) Planned periodic premiums, if any, are
				  paid as scheduled.
(B) Guaranteed
				  costs of insurance are deducted.
(C) The net investment return is equal to the
				  guaranteed rate or, in the absence of a guaranteed rate, is not greater than
				  zero.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › REPORTS TO POLICYHOLDERS › Section 82.73 - Separate account statements

Current through Register Vol. 54, No. 28, July 13, 2024
Annually, a statement shall be mailed which includes the
					 following:
(1) A summary of the
				  financial statement of the separate account based on the annual statement last
				  filed with the Commissioner.
(2)
				  The net investment return of the separate account for the last year and, for
				  each year after the first, a comparison of the investment rate of the separate
				  account during the last year with the investment rate during prior years, up to
				  a total of not less than 5 years when available.
(3) A list of investments held by the
				  separate account, as of a date not earlier than the end of the last year for
				  which an annual statement was filed with the Commissioner.
(4) Charges levied against the separate
				  account during the year.
(5) A
				  statement of a change, since the last report, in the investment objective and
				  orientation of the separate account, in an investment restriction or material
				  quantitative or qualitative investment requirement applicable to the separate
				  account, or in the investment advisor of the separate account.
(6) The name of each broker or dealer
				  handling portfolio transactions on behalf of the separate account in which the
				  insurer or an affiliate has a material direct or indirect interest and the
				  nature of the transactions and the amount of compensation received by each
				  broker or dealer from business originating with the separate account during the
				  preceding fiscal year.
(7) The
				  names and principal occupations of each principal executive officer and each
				  director of the insurer.
(8) The
				  names of parent companies of the insurer and the basis of control of the
				  insurer and the name of persons who are known to own, of record or
				  beneficially, 10% or more of the outstanding voting securities of the
				  company.
This section cited in 31 Pa. Code §
												82.17 (relating to reports to the
						Commissioner); and 31 Pa. Code §
												82.71 (relating to
						mailing).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › REPORTS TO POLICYHOLDERS › Section 82.74 - Warning statements for flexible premium policies

Current through Register Vol. 54, No. 28, July 13, 2024
For flexible premium policies, a report shall be sent to
					 the policyholder if the amounts available under the policy on a policy
					 processing day to pay the charges authorized by the policy are less than the
					 amount necessary to keep the policy in force until the next following policy
					 processing day. The report shall indicate the minimum payment required under
					 the terms of the policy to keep it in force and the length of the grace period
					 for payment of that amount.
This section cited in 81 Pa. Code §
												82.17 (relating to reports to the
						Commissioner); 31 Pa. Code §
												82.24 (relating to mandatory
						policy provisions); 31 Pa. Code §
												82.25 (relating to policy loan
						provisions); and 31 Pa. Code §
												82.71 (relating to
						mailing).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF AGENTS AND BROKERS FOR THE SALE OF VARIABLE LIFE INSURANCE › Section 82.81 - Qualifications to sell variable life insurance

Current through Register Vol. 54, No. 28, July 13, 2024
(a) No person may sell or offer for sale in
				  this Commonwealth a variable life insurance policy unless the person is an
				  agent and has filed with the Commissioner, in a form satisfactory to the
				  Commissioner, evidence that the person holds a license or authorization which
				  may be required for the solicitation or sale of variable life
				  insurance.
(b) An examination
				  administered by the Department for the purpose of determining the eligibility
				  of a person for licensing as an agent will, after the effective date of this
				  chapter, include questions concerning the history, purpose, regulation and sale
				  of variable life insurance as the Commissioner deems appropriate.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › QUALIFICATION OF AGENTS AND BROKERS FOR THE SALE OF VARIABLE LIFE INSURANCE › Section 82.82 - Reports of disciplinary actions

Current through Register Vol. 54, No. 28, July 13, 2024
A person qualified in this Commonwealth under this chapter
					 to sell or offer to sell variable life insurance shall immediately report to
					 the Commissioner:
(1) A suspension or
				  revocation of his agent's license in another state or territory of the United
				  States.
(2) The imposition of a
				  disciplinary sanction, including suspension or expulsion from membership,
				  suspension or revocation of or denial of registration imposed upon him by any
				  national securities exchange, national securities association or a Federal,
				  State or territorial agency with jurisdiction over securities or variable life
				  insurance.
(3) A judgment or
				  injunction entered against him on the basis of conduct deemed to have involved
				  fraud, deceit, misrepresentation or violation of an insurance or securities law
				  or regulation.