South Carolina Code of Regulations › Chapter 69 - DEPARTMENT OF INSURANCE › Section 69-12 - Variable Contracts

Current through Register Vol. 48, No. 6, June 28, 2024
PART A
		  --VARIABLE ANNUITIES
Article I : Authority.
Part A of this Regulation, applicable to variable annuities, is
			 promulgated under the authority of S. C. Code Section
			 38-67-40
			 (1976).
Article II :
		  Definitions.
As used in Part A of this Regulation:
(1) The term "variable annuity" shall mean
		  any policy or contract which provides for annuity benefits which vary according
		  to the investment experience of any separate account or accounts maintained by
		  the insurer as to such policy or contract, as provided for in S. C. Code
		  Section
		  38-67-10
		  (1976) or pursuant to the corresponding section of the insurance laws of the
		  state of domicile of a foreign or alien insurer.
(2) "Agent" shall mean any individual
		  licensed by the Commissioner as a life insurance agent.
(3) "Commissioner" shall mean the Chief
		  Insurance Commissioner of South Carolina.
Article III : Qualification of Insurance
		  Companies to Issue Variable Annuities.
(1) No
		  insurance company shall deliver or issue for delivery variable annuities within
		  this State unless (a) it is licensed or organized to do a life insurance or
		  annuity business in this State, and (b) the Commissioner is satisfied that its
		  condition or method of operation in connection with the issuance of such
		  contracts will not render its operation hazardous to the public or its
		  policyholders in this State. In this connection, the Commissioner shall
		  consider among other things:
(i) The history
		  and financial condition of the company;
(ii) The character, responsibility and
		  fitness of the officers and directors of the company;
(iii) The law and regulation under which the
		  company is authorized in its state of domicile to issue variable annuities.
(2) If the company is a
		  subsidiary of an admitted life insurance company, or affiliated with such
		  company by common management or ownership, it may be deemed by the Commissioner
		  to have satisfied the provisions of clause (b) of Paragraph (1) hereof if
		  either it or such admitted life company satisfies the aforementioned
		  provisions; provided, further, that companies licensed and having a
		  satisfactory record of doing business in this State for a period of at least
		  three years may be deemed to have satisfied the Commissioner with respect to
		  clause (b) of Paragraph (1) above.
(3) Before any company shall deliver or issue
		  for delivery variable annuities within this State it shall submit to the
		  Commissioner (a) a general description of the kinds of variable annuities it
		  intends to issue, (b) if requested by the Commissioner, a copy of the statutes
		  and regulations of its state of domicile under which it is authorized to issue
		  variable annuities, and (c) if requested by the Commissioner, biographical data
		  with respect to officers and directors of the company on such forms as the
		  Commissioner may approve.
Article
		  IV : Separate Account.
A domestic company issuing variable annuities shall establish one
			 or more separate accounts pursuant to S. C. Code Section
			 38-67-10
			 (1976), subject to the following provisions of this Article:
(1)
(a)
		  Except as may be provided with respect to reserves for guaranteed benefits and
		  funds referred to in Paragraph (1)(b), (i) amounts allocated to any separate
		  account and accumulations thereon may be invested and reinvested without regard
		  to any requirements or limitations prescribed by the laws of this State
		  governing the investments of life insurance companies, and (ii) the investments
		  in such separate account or accounts shall not be taken into account in
		  applying the investment limitations otherwise applicable to the investments of
		  the company.
(b) Reserves for (i)
		  benefits guaranteed as to dollar amount and duration, and (ii) funds guaranteed
		  as to principal amount or stated rate of interest may be maintained in a
		  separate account, if a portion of the assets of such separate account at least
		  equal to such reserve liability is invested in accordance with the laws and
		  regulations of this State governing the investments of life insurance
		  companies. Such portion of the assets also shall not be taken into account in
		  applying the investment limitations otherwise applicable to the investments of
		  the company.
(c) With respect to
		  75% of
		  the market value of the total assets in a separate account, no company shall
		  purchase or otherwise acquire the securities of any issuer, other than
		  securities issued or guaranteed as to principal or interest by the United
		  States, if immediately after such purchase or acquisition the market value of
		  such investment, together with prior investments of such separate account in
		  such security taken at market, would exceed
		  10% of the market value of the assets of
		  said separate account; provided, however, that the Commissioner may waive such
		  limitation if, in his opinion, such waiver will not render the operation of
		  such separate account hazardous to the public or policyholders in this State.
(d) Unless otherwise permitted by
		  law or approved by the Commissioner, no company shall purchase or otherwise
		  acquire for its separate accounts the voting securities of any issuer if as a
		  result of such acquisition the insurance company and its separate accounts, in
		  the aggregate, will own more than
		  10% of the total issued and outstanding
		  voting securities of such issuer; provided, that the foregoing shall not apply
		  with respect to securities held in separate accounts, the voting rights in
		  which are exercisable only in accordance with instructions from persons having
		  interest in such accounts.
(e) The
		  limitations provided in Paragraphs (1)(c) and (1)(d) above shall not apply to
		  the investment with respect to a separate account in the securities of an
		  investment company registered under the Investment Company Act of
		  1940, provided that the investments of such
		  investment company comply in substance with Paragraphs (1)(c) and (1)(d)
		  hereof.
(2) Unless
		  otherwise approved by the Commissioner, assets allocated to a separate account
		  shall be valued at their market value on the date of valuation, or if there is
		  no readily available market, then as provided under the terms of the contract
		  or the rules or other written agreement applicable to such separate account;
		  provided, that unless otherwise approved by the Commissioner, the portion, if
		  any, of the assets of such separate account equal to the company's reserve
		  liability with regard to the benefits and funds referred to in clauses (i) and
		  (ii) of Paragraph (1)(b) shall be valued in accordance with the rules otherwise
		  applicable to the company's assets.
(3) If and to the extent so provided under
		  the applicable contracts, that portion of the assets of any such separate
		  account equal to the reserves and other contract liabilities with respect to
		  such account shall not be chargeable with liabilities arising out of any other
		  business the company may conduct.
(4) Notwithstanding any other provisions of
		  law, a company may
(a) with respect to any
		  separate account registered with the Securities and Exchange Commission as a
		  unit investment trust, exercise voting rights in connection with any securities
		  of a regulated investment company registered under the Investment Company Act
		  of 1940 and held in such separate accounts in
		  accordance with instructions from persons having interests in such accounts
		  ratably as determined by the company, or
(b) with respect to any separate account
		  registered with the Securities and Exchange Commission as a management
		  investment company, establish for such account a committee, board, or other
		  body, the members of which may or may not be otherwise affiliated with such
		  company and may be elected to such membership by the vote of persons having
		  interests in such account ratably as determined by the company. Such committee,
		  board or other body may have the power, exercisable alone or in conjunction
		  with others, to manage such separate account and the investment of its assets.
A company, committee, board or other body may make such other
			 provisions in respect to any such separate account as may be deemed appropriate
			 to facilitate compliance with requirements of any federal or state law now or
			 hereafter in effect; provided that the Commissioner approves such provisions as
			 not hazardous to the public or the company's policyholders in this
			 State.
(5) 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 unless, in the case of a transfer into a separate
		  account, such transfer is made solely to establish the account or to support
		  the operation of the contracts with respect to the separate account to which
		  the transfer is made, and unless such transfer, whether into or from a separate
		  account, is made (a) by a transfer of cash, or (b) by a transfer of securities
		  having a valuation which could be readily determined in the marketplace,
		  provided that such transfer of securities is approved by the Commissioner. The
		  Commissioner may authorize other transfers among such accounts, if, in his
		  opinion, such transfers would not be inequitable.
(6) The company shall maintain in each
		  separate account assets with a value at least equal to the reserves and other
		  contract liabilities with respect to such account, except as may otherwise be
		  approved by the Commissioner.
(7)
		  Rules under any provision of the insurance laws of this State or any regulation
		  applicable to the officers and directors of insurance companies with respect to
		  conflict of interest shall also apply to members of any separate accounts
		  committee, board or other similar body. No officer or director of such company
		  nor any member of the committee, board or body of a separate account shall
		  receive directly or indirectly any commission or any other compensation with
		  respect to the purchase or sale of assets of such separate account.
Article V : Filing of
		  Contracts.
The filing requirements applicable to variable annuities shall be
			 those filing requirements otherwise applicable under existing statutes and
			 regulations of this State with respect to individual and group life insurance
			 and annuity contract form filings, to the extent appropriate.
Article VI : Variable Annuity Contracts.
(1) Any variable annuity providing benefits
		  payable in variable amounts delivered or issued for delivery in this State
		  shall contain a statement of the essential features of the procedures to be
		  followed by the insurance company in determining the dollar amount of such
		  variable benefits. Any such contract, including a group contract and any
		  certificate in evidence of variable benefits issued thereunder, shall state
		  that such dollar amount will vary to reflect investment experience and shall
		  contain on its first page a clear and prominent statement to the effect that
		  the benefits thereunder are on a variable basis.
(2) Illustrations of benefits payable under
		  any variable annuity shall not include projections of past investment
		  experience into the future or attempted predictions of future investment
		  experience; provided that nothing contained herein is intended to prohibit use
		  of hypothetical assumed rates of return to illustrate possible levels of
		  benefits.
(3) No individual
		  variable annuity contract calling for the payment of periodic stipulated
		  payments to the insurer shall be delivered or issued for delivery in this State
		  unless it contains in substance the following provision or provisions which in
		  the opinion of the Commissioner are more favorable to the holders of such
		  contracts:
(a) A provision that there shall be
		  a period of grace of 30 days or of one month, within which any stipulated
		  payment to the insurer falling due after the first may be made, during which
		  period of grace the contract shall continue in force. The contract may include
		  a statement of the basis for determining the date as of which any such payment
		  received during the period of grace shall be applied to produce the values
		  under the contract arising therefrom;
(b) A provision that, at any time within one
		  year from the date of default, in making periodic stipulated payments to the
		  insurer during the life of the annuitant and unless the cash surrender value
		  has been paid, the contract may be reinstated upon payment to the insurer of
		  such overdue payments as required by the contract, and of all indebtedness to
		  the insurer on the contract, including interest. The contract may include a
		  statement of the basis for determining the date as of which the amount to cover
		  such overdue payments and indebtedness shall be applied to produce the values
		  under the contract arising therefrom;
(4) Any variable annuity contract delivered
		  or issued for delivery in this State shall stipulate the investment increment
		  factors to be used in computing the dollar amount of variable benefits or other
		  variable contractual payments or values thereunder, and may guarantee that
		  expense and/or mortality results shall not adversely affect such dollar
		  amounts. In the case of an individual variable annuity contract under which the
		  expense and mortality results may adversely affect the dollar amount of
		  benefits, the expense and mortality factors shall be stipulated in the
		  contract.
In computing the dollar amount of variable benefits or other
			 contractual payments or values under an individual variable annuity
			 contract:
(a) The annual net investment
		  increment assumption shall not exceed
		  5% except with the approval of the
		  Commissioner.
(b) To the extent
		  that the level of benefits may be affected by future mortality results, the
		  mortality factor shall be determined from the Annuity Mortality Table for 1949,
		  ultimate, or any modification of that table not having a lower life expectancy
		  at any age, or, if approved by the Commissioner, from another table.
"Expense" as used in this Paragraph, may exclude some or all
			 taxes, as stipulated in the contract.
(5) The reserve liability for variable
		  annuities shall be established pursuant to the requirements of S. C. Code
		  Section
		  38-9-180
		  (1976) (the Standard Valuation Law) in accordance with actuarial procedures
		  that recognize the variable nature of the benefits provided and any mortality
		  guarantees.
Article VII
		  : Nonforfeiture Benefits.
(1) This Article
		  shall not apply to any (i) reinsurance, (ii) group annuity contract purchased
		  in connection with one or more retirement plans or plans of deferred
		  compensation established or maintained by or for one or more employers
		  (including partnerships or sole proprietorships), employee organizations, or
		  any combination thereof, or other than plans providing individual retirement
		  accounts or individual retirement annuities under Section 408 of the Internal
		  Revenue Code, as now or hereafter amended, (iii) premium deposit fund, (iv)
		  investment annuity, (v) immediate annuity, (vi) deferred annuity contract after
		  annuity payments have commenced, (vii) reversionary annuity, or to any (viii)
		  contract which is to be delivered outside this state through an agent or other
		  representative of the company issuing the contract.
(2) To the extent that any variable annuity
		  contract provides benefits which do not vary in accordance with the investment
		  performance of a separate account before the annuity commencement date, such
		  contract shall contain provisions which satisfy the requirements of Chapter 69
		  of Title 38 of 1976 Code, (the Standard Nonforfeiture Law for Deferred
		  Annuities) and shall not otherwise be subject to this Article.
(3) In the case of a contract issued one
		  hundred eighty (180) days after the effective date of this
		  regulation, no variable annuity contract, except as stated in Paragraphs (1)
		  and (2), shall be delivered or issued for delivery in this state unless it
		  contains in substance the following provisions, or corresponding provisions
		  which in the opinion of the Commissioner are at least as favorable to the
		  contractholder, upon cessation of payment of considerations under the contract:
(a) That upon cessation of payment of
		  considerations under a contract, the company will grant a paid-up annuity
		  benefit on a plan described in the contract that complies with Paragraph (7).
		  Such description will include a statement of the mortality table, if any, and
		  guaranteed or assumed interest rates used in calculating annuity payments.
(b) If a contract provides for a
		  lump sum settlement at maturity, or at any other time, that upon surrender of
		  the contract at or prior to the commencement of any annuity payments, the
		  company will pay in lieu of any paid-up annuity benefit a cash surrender
		  benefit as described in the contract that complies with Paragraph (8). The
		  contract may provide that the company reserves the right, at its option, to
		  defer the determination and payment of any cash surrender benefit for any
		  period during which the New York Stock Exchange is closed for trading (except
		  for normal holiday closing) or when the Securities and Exchange Commission has
		  determined that a state of emergency exists which may make such determination
		  and payment impractical.
(c) A
		  statement that any paid-up annuity, cash surrender or death benefits that may
		  be available under the contract are not less than the minimum benefits required
		  by any statute of the state in which the contract is delivered and an
		  explanation of the manner in which such benefits are altered by the existence
		  of any additional amounts credited by the company to the contract, any
		  indebtedness to the company on the contract or any prior withdrawals from or
		  partial surrenders of the contract.
(4) The minimum values as specified in this
		  Article of any paid-up annuity, cash surrender or death benefits available
		  under a variable annuity contract shall be based upon nonforfeiture amounts
		  meeting the requirements of this paragraph.
The minimum nonforfeiture amount on any date prior to the annuity
			 commencement date shall be an amount equal to the percentages of net
			 considerations (as specified in Paragraph 5) increased (or decreased) by the
			 net investment return allocated to the percentages of net considerations, which
			 amount shall be reduced to reflect the effect of:
(i) any partial withdrawals from or partial
		  surrenders of the contract;
(ii)
		  the amount of any indebtedness on the contract, including interest due and
		  accrued;
(iii) an annual contract
		  charge not less than zero and equal to (a) the lesser of thirty dollars
		  ($30.00) and 2% of the end of year contract value less (b) the amount of any
		  annual contract charge deducted from any gross considerations credited to the
		  contract during such contract year; and
(iv) a transaction charge of ten dollars
		  ($10.00) for each transfer to another separate account or to another investment
		  division within the same separate account.
"Net investment return" means the rate of investment return to be
			 credited to the variable annuity contract in accordance with the terms of the
			 contract after deductions for tax charges, if any, and for asset charges either
			 at a rate not in excess of that stated in the contract, or in the case of a
			 contract issued by a non-profit corporation under which the contractholder
			 participates fully in the investment, mortality and expense experience of the
			 account, in an amount not in excess of the actual expense not offset by other
			 deductions. The net investment return to be credited to a contract shall be
			 determined at least monthly.
The annual contract charge of thirty dollars ($30.00) and the
			 transaction charge of ten dollars ($10.00) referred to above will be adjusted
			 to reflect changes in the Consumer Price Index in accordance with Paragraph
			 (6).
(5) The
		  percentages of net considerations used to define the minimum nonforfeiture
		  amount in Paragraph (4) shall meet the requirements of this paragraph.
(a) With respect to contracts providing for
		  periodic considerations, the net considerations for a given contract year used
		  to define the minimum nonforfeiture amount shall be an amount not less than
		  zero and shall be equal to the corresponding gross considerations credited to
		  the contract during that contract year less an annual contract charge of thirty
		  dollars ($30.00) and less a collection charge of one dollar and twenty-five
		  cents ($1.25) per consideration credited to the contract during that contract
		  year less any charges for premium taxes. The percentages of net considerations
		  shall be sixty-five percent (65%) for the first contract year and eighty-seven
		  and one-half percent (87 1/2 %) for the second and later contract years.
		  Notwithstanding the provisions of the preceding sentence, the percentage shall
		  be sixty-five percent (65%) of the portion of the total net consideration for
		  any renewal contract year which exceeds by not more than two times the sum of
		  those portions of the net considerations in all prior contract years for which
		  the percentage was sixty-five percent (65%).
(b) With respect to contracts providing for a
		  single consideration, the net consideration used to define the minimum
		  nonforfeiture amount shall be the gross consideration less a contract charge of
		  seventy-five dollars ($75.00) and less any charge for premium taxes. The
		  percentage of the net consideration shall be ninety percent (90%).
The annual contract charge of thirty dollars ($30.00), the
			 collection charge of one dollar and twenty-five cents ($1.25) per collection,
			 and the single consideration contract charge of seventy-five dollars ($75.00)
			 referred to above, will be adjusted to reflect changes in the Consumer Price
			 Index in accordance with Paragraph (6).
(6) Demonstration that a contract's
		  nonforfeiture amounts comply with this Article shall be based on the following
		  assumptions:
(a) Values should be tested at
		  the ends of each of the first twenty (20) contract years;
(b) A net investment return of 7% per year
		  should be used;
(c) If the
		  contract provides for transfers to another separate account or to another
		  investment division within the same separate account, one transfer per contract
		  year should be assumed;
(d) In
		  determining the state premium tax, if any, applicable to the contract, the
		  state of residence should be assumed to equal the state of delivery;
(e) With respect to contracts providing for
		  periodic considerations, monthly considerations of $100 should be assumed for
		  each of the first 240 months;
(f)
		  With respect to contracts providing for a single consideration, a $10,000
		  single consideration should be assumed; and
(g) The following contract charges should be
		  used:
(1) For contracts filed in 1980 or
		  earlier, the annual contract charge of thirty dollars ($30.00) referred to in
		  Paragraphs (4) and (5), the charge of ten dollars ($10.00) per transfer
		  referred to in Paragraph (4), the collection charge of one dollar and
		  twenty-five cents ($1.25) per consideration referred to in Paragraph (5), and
		  the contract charge of seventy-five dollars ($75.00) referred to in Paragraph
		  (5)(b).
(2) For contracts filed in
		  1981 or later, the above contract charges multiplied by the ratio of (i) the
		  Consumer Price Index for June of the calendar year preceding the date of
		  filing, to (ii) the Consumer Price Index for June, 1979.
(h) If the contract provides for allocation
		  of considerations to both fixed and variable accounts, 100% of the
		  considerations should be assumed to be allocated to the variable account.
As used herein, the Consumer Price Index means such Index for all
			 urban consumers for all items as published by the Bureau of Labor Statistics of
			 the United States Department of Labor or its successor.
If publication of the Consumer Price Index ceases, or if such
			 Index otherwise becomes unavailable or is altered in such a way as to be
			 unusable, the Commissioner will substitute an index he deems to be
			 suitable.
(7)
		  Any paid-up annuity benefit available under a variable annuity contract shall
		  be such that its present value on the annuity commencement date is at least
		  equal to the minimum nonforfeiture amount on the date. Such present value shall
		  be computed using the mortality table, if any, and the guaranteed or assumed
		  interest rates used in calculating the annuity payments.
(8) For variable annuity contracts which
		  provide cash surrender benefits, the cash surrender benefit at any time prior
		  to the annuity commencement date shall not be less than the minimum
		  nonforfeiture amount next computed after the request for surrender is received
		  by the company. The death benefit under such contracts shall be at least equal
		  to the cash surrender benefits.
(9) Any variable annuity contract which does
		  not provide cash surrender benefits or does not provide death benefits at least
		  equal to the minimum nonforfeiture amount prior to the annuity commencement
		  date shall include a statement in a prominent place in the contract that such
		  benefits are not provided.
(10)
		  Notwithstanding the requirements of this Article, a variable annuity contract
		  may provide under the situations specified in (a) or (b) below that the
		  company, at its option, may cancel the annuity and pay the contractholder its
		  accumulated value and by such payment be released of any further obligation
		  under such contract:
(a) if at the time the
		  annuity becomes payable the accumulated value is less than $2,000, or would
		  provide an income the initial amount of which is less than $20 per month; or
(b) if prior to the time the
		  annuity becomes payable under a periodic payment variable annuity contract no
		  considerations have been received under the contract for a period of two (2)
		  full years and both (i) the total considerations paid prior to such period,
		  reduced to reflect any partial withdrawals from or partial surrenders of the
		  contract and (ii) the accumulated value, amount to less than $2,000.
(11) For any variable annuity
		  contract which provides, within the same contract by rider or supplemental
		  contract provision, both annuity benefits and life insurance benefits that are
		  in excess of the greater of cash surrender benefits or a return of the gross
		  considerations with interest, the minimum nonforfeiture benefits shall be equal
		  to the sum of the minimum nonforfeiture benefits for the annuity portion and
		  the minimum nonforfeiture benefits, if any, for the life insurance portion
		  computed as if each portion were a separate contract. Notwithstanding the
		  provisions of Paragraph (4), additional benefits payable (a) in the event of
		  total and permanent disability, (b) as reversionary annuity or deferred
		  reversionary annuity benefits, or (c) as other policy benefits additional to
		  life insurance, endowment, and annuity benefits, and considerations for all
		  such additional benefits shall be disregarded in ascertaining the minimum
		  nonforfeiture amounts, paid-up annuity, cash surrender and death benefits that
		  may be required by this Article. The inclusion of such additional benefits
		  shall not be required in any paid-up benefits, unless such additional benefits
		  separately would require minimum nonforfeiture amounts, paid-up annuity, cash
		  surrender and death benefits.
Article
		  VIII : Required Reports.
(1) Any
		  company issuing individual variable annuities shall mail to the contractholder
		  at least once in each contract year after the first at his last address known
		  to the company, a statement or statements reporting the investments held in the
		  separate account. The company shall submit annually to the Commissioner a
		  statement of business of its separate account or accounts in such form as may
		  be approved by the Commissioner.
(2) Any company issuing individual variable
		  annuities shall mail to the contractholder at least once in each contract year
		  after the first at his last address known to the company a statement reporting
		  as of a date not more than four months previous to the date of mailing. In the
		  case of an annuity contract under which payments have not yet commenced, the
		  report shall contain (a) the number of accumulation units credited to such
		  contract and the dollar value of a unit, or (b) the value of the
		  contractholder's account.
Article
		  IX : Foreign Companies.
If the law or regulation in the place of domicile of a foreign
			 company provides a degree of protection to policyholders and the public which
			 is substantially equal to that provided by these regulations, the Commissioner,
			 to the extent deemed appropriate by him in his discretion, may consider
			 compliance with such law or regulation as compliance with these
			 regulations.
Article X :
		  Qualifications of Agents for the Sale of Variable Annuities.
(1)
(a) No
		  person may sell or offer for sale in this state any variable annuity contract
		  unless such person is an agent and has filed with the Commissioner, in a form
		  satisfactory to the Commissioner, evidence that such person holds any license
		  or authorization which may be required for the solicitation or sale of variable
		  annuity contracts by any federal or state securities law.
(b) Any examination required by the
		  Commissioner for the purpose of determining the eligibility of any person for
		  licensing as an agent shall, after the effective date of this regulation,
		  include such questions concerning the history, purpose, regulation, and sale of
		  variable annuity contracts as the Commissioner deems appropriate.
(2) Any person qualified in this
		  state under this Article to sell or offer to sell variable annuity contracts
		  shall immediately report to the Commissioner:
(a) Any suspension or revocation of his
		  agents license in any other state or territory of the United States;
(b) The imposition of any disciplinary
		  sanction, including suspension or expulsion from membership, suspension, or
		  revocation of or denial of registration, imposed upon him by any national
		  securities exchange, or national securities association, or any federal, state,
		  or territorial agency with jurisdiction over securities or variable annuity
		  contracts;
(c) Any judgment or
		  injunction entered against him on the basis of conduct deemed to have involved
		  fraud, deceit, misrepresentation, or violation of any insurance or securities
		  law or regulation.
(3)
		  The Commissioner may reject any application or suspend or revoke or refuse to
		  renew any agent's qualification under this Article to sell or offer to sell
		  variable annuity contracts or impose monetary penalties upon any ground that
		  would warrant similar disciplinary action arising out of the agent's sale of
		  other life insurance contracts in this state. The rules governing any
		  proceeding relating to the suspension or revocation of an agent's license shall
		  also govern any proceeding for suspension or revocation of an agent's
		  qualification to sell or offer to sell variable annuity contracts.