reglab/statecodes huggingface dataset:
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 82.83 - Refusal to qualify agent to sell variable life insurance; suspension, revocation or nonrenewal of qualification

Current through Register Vol. 54, No. 28, July 13, 2024
The Commissioner may reject an application or suspend or
					 revoke or refuse to renew the qualification of an agent under this section to
					 sell or offer to sell variable life insurance, upon grounds that would bar the
					 applicant or the agent from being licensed to sell other life insurance
					 contracts in this Commonwealth. The rules governing proceedings relating to the
					 suspension or revocation of the license of an agent shall also govern a
					 proceeding for suspension or revocation of the qualification of an agent to
					 sell or offer to sell variable life insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › FOREIGN COMPANIES › Section 82.91 - Foreign companies

Current through Register Vol. 54, No. 28, July 13, 2024
If the law or regulation in the place of domicile of a
					 foreign company provides a degree of protection to the policyholders and the
					 public which is substantially similar to that provided by this chapter, the
					 Commissioner, to the extent the Commissioner deems it appropriate, may consider
					 compliance with the law or regulation as compliance with this
					 chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
(a) This subchapter
				  protects the purchaser from misrepresentation, unfair comparison and deceptive
				  and misleading sales methods in the solicitation of life insurance by setting
				  standards for disclosure of minimal information pertinent to a life insurance
				  contract.
(b) This subchapter is
				  not intended to prohibit a life insurance agent or insurer from using
				  additional solicitation material which is not in violation of this chapter,
				  applicable Commonwealth statutes or other applicable provisions of this
				  title.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.2 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
(a) This subchapter
				  applies to insurance companies authorized to transact the business of life
				  insurance in this Commonwealth as regards solicitation of the sale of insurance
				  on the life of a Commonwealth resident unless excluded in subsection (b). This
				  subchapter equally applies to fraternal benefit societies authorized to
				  transact the business of life insurance in this Commonwealth and employing
				  representatives licensed as agents or brokers or selling life insurance on a
				  direct-response or mail-order basis. When the cost of life insurance coverage
				  is borne in part by the employer of the insured, the required disclosures may
				  be made at representative ages of not to exceed 10-year age intervals in lieu
				  of a disclosure at all applicable ages.
(b) This subchapter is not applicable to the
				  following kinds of insurance:
(1)
				  Annuities.
(2) Group life
				  insurance.
(3) Credit life
				  insurance.
(4) Life insurance of
				  $1,000 or less.
(5) Substandard
				  solicitations to the extent the agent or company do not reasonably know the
				  pertinent information at the time the presentation is made to a prospective
				  insured.
(6) Life insurance issued
				  in connection with qualified funded pension plans and qualified retirement
				  plans.
(7) Life insurance issued as
				  a result of a contractual policy change or conversion provision.
(8) Life insurance where the cost is borne in
				  whole by the employer of the insured.
(9) Variable life insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.4 - Time of delivery

Current through Register Vol. 54, No. 28, July 13, 2024
Except as otherwise provided herein, the written disclosure
					 statement shall be given no later than the time that the application form is
					 signed by the applicant.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.4a - Certification of disclosure statement delivery

Current through Register Vol. 54, No. 28, July 13, 2024
The agent shall submit to the insurer with or as a part of
					 the application for life insurance a statement, signed by him, certifying that
					 the written disclosure statement was given no later than the time that the
					 application was signed by the applicant.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.4b - Maintenance of disclosure statement delivery certification

Current through Register Vol. 54, No. 28, July 13, 2024
The insurer shall maintain the agent's certification of
					 disclosure statement delivery in its appropriate files for at least 3 years or
					 until the conclusion of the next succeeding regular examination by the
					 Insurance Department of its domicile, whichever is later. The absence of the
					 agent's certification from the appropriate files of the insurer shall
					 constitute prima facie evidence that no disclosure statement was provided to
					 the prospective purchaser of life insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.4c - Certification of disclosure statement delivery by direct-response or mail-order insurers

Current through Register Vol. 54, No. 28, July 13, 2024
The appropriate officer of each direct-response or
					 mail-order insurer shall certify, in conjunction with the annual statement of
					 the insurer, that all written disclosure statements have been provided in
					 accordance with this subchapter. Failure to so certify shall constitute prima
					 facie evidence that written disclosure statements have not been provided to
					 prospective purchasers of life insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.5 - Effect on other insurance laws or regulations

Current through Register Vol. 54, No. 28, July 13, 2024
This subchapter does not limit the authority of the
					 Commissioner or the responsibilities of an individual or entity selling
					 insurance under another chapter or law, unless such is specifically stated in
					 the body of that chapter or law.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter A - REQUIRED DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.6 - Penalties

Current through Register Vol. 54, No. 28, July 13, 2024
(a) For failing to
				  make adequate disclosure of basic information about the product being sold,
				  after an administrative hearing as provided by law, an agent or broker may be
				  subject to the penalties provided in section 639 of The Insurance Department
				  Act of one thousand nine hundred and twenty-one (40 P. S. §
											279) for conduct that would disqualify an
				  agent or broker from the initial issuance of a license under section 603 or
				  section 622 of that act (40 P. S. §
											233 or § 252).
(b) For failing to insure adequate disclosure
				  of basic information about the product being sold, after a hearing as provided
				  by law, a company may be subject to the penalties provided in section 350 of
				  The Insurance Company Law of 1921 (40 P. S. §
											475) for violations of sections 347-349 of
				  The Insurance Company Law of 1921 (40 P. S. §§
											472-474).
(c) For failing to insure adequate disclosure
				  of basic information about the product being sold, after a hearing as provided
				  by law, a fraternal benefit society may be subject to the penalties provided in
				  sections 817(b) and 904(d) of the Fraternal Benefit Society Code (40 P. S.
				  §§
											1141-817(b) and
				  1141-904(d)).
(d) In addition to subsections (a)-(c),
				  failure to make the disclosure outlined in this subchapter may be considered a
				  violation of the Unfair Insurance Practices Act (40 P. S. §§
											1171.1-1171.15).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.51 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
The interest adjusted method at 5% shall be used to provide
					 a 10-year and 20-year surrender comparison index per $1,000 of face amount of
					 basic insurance. The index shall be based on the premise that the policy will
					 be surrendered at the end of 10 years and 20 years. This index will provide the
					 purchaser of life insurance with a means of making a cost comparison of the
					 same type life insurance policies having the same premium payment period and
					 pattern. This subchapter is not intended to prohibit a life insurance agent or
					 insurer from providing additional means to make cost comparison which are not
					 in violation of this subchapter, applicable Commonwealth statutes or this
					 title.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.52 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
(a) This subchapter
				  applies to insurance companies authorized to transact the business of life
				  insurance in this Commonwealth as regards solicitation of the sale of insurance
				  on the life of a Commonwealth resident unless excluded in subsection (b). This
				  subchapter equally applies to fraternal benefit societies authorized to
				  transact the business of life insurance in this Commonwealth and employing
				  representatives licensed as agents or brokers or selling life insurance on a
				  direct-response or mail-order basis.
(b) This subchapter is not applicable to the
				  following kinds of insurance:
(1)
				  Annuities.
(2) Group life
				  insurance.
(3) Credit life
				  insurance.
(4) Life insurance of
				  less than $5,000.
(5) Life
				  insurance on substandard risks.
(6)
				  Life insurance issued in connection with qualified funded pension plans and
				  qualified retirement plans.
(7)
				  Life insurance issued as a result of a contractual policy change or conversion
				  provision.
(8) Life insurance where
				  the cost is borne in whole or in part by the employer of the insured.
(9) Policies having a varying face amount,
				  resulting from other than the application of dividends.
(10) Variable life insurance.
(11) Family policies.
(12) Term policies.
(13) Riders.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.53 - Calculation of Surrender Comparison Index

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Calculation of Surrender Comparison Index
				  After Ten Years shall be performed in the following manner:
(1)
Step 1.
Accumulate the
				  annual premiums for the basic policy, excluding all built-in benefits and
				  riders, at 5% interest compounded annually for 10 years. For level premium
				  policies:
Accumulated premiums = level annual premium x
					 13.207.
(2)
Step 2.
Accumulate the annual dividends, if any, at 5% interest compounded
				  annually for 10 years. Include termination dividend after 10 years.
(3)
Step 3.
Determine the
				  cash value after 10 years.
(4)
Step 4.
Step 4 shall be based on the following formula:
Surrender Comparison Index after ten years=
								(5.0%)
Accumulated Premiums (Step 1)
minus
Accumulated
								Dividends (Step 2)
minus
Cash Value (Step 3)
_______________________________________________________________
13.207 x Face Amount of
								Policy-1000
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.54 - Additional methods of comparison

Current through Register Vol. 54, No. 28, July 13, 2024
In addition to the method required by this subchapter,
					 additional methods of cost comparison will be permitted provided that a method
					 chosen takes into account an interest based on 5% that recognizes the times of
					 payment. Prior to the use of an additional method, it shall be filed with the
					 Department for review. Traditional net cost comparison methods are
					 prohibited.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.55 - Delivery

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Surrender
				  Comparison Index Disclosure shall be given as a separate document upon delivery
				  of the policy or earlier if requested by the life insurance applicant. If
				  requested earlier, the index disclosure shall be provided as soon as reasonably
				  possible.
(b) A disclosure that is
				  minimally satisfactory to the Insurance Department is set forth in Appendix B.
				  If the Appendix B disclosure will be used, a letter to that effect, prior to
				  use, is adequate notification to the Department. However, if a disclosure
				  different than Appendix B will be used, it must be filed with the Department
				  for review prior to use.
(c) The
				  Surrender Comparison Index Disclosure shall describe:
(1) The name, age and sex of the
				  insured.
(2) The face amount of the
				  policy.
(3) The descriptive title
				  of the policy, as "whole life, 20 year decreasing term, endowment at age 65,"
				  and so forth.
(4) The policy number
				  of policy.
(5) The 10-year
				  Surrender Index and 20-year Surrender Index per $1,000 of face amount of basic
				  insurance.
(6) If applicable, the
				  amount of the equivalent level annual dividend and termination dividend
				  reflected in each Index.
(7) If
				  applicable, the dividend scale on which the reflected dividends are
				  based.
(8) An explanation of the
				  purpose and use of the Surrender Comparison Index.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.55a - Certification of surrender comparison index disclosure delivery

Current through Register Vol. 54, No. 28, July 13, 2024
The agent shall submit to the insurer a statement, signed
					 by him, certifying that the surrender comparison index disclosure was given
					 upon delivery of the policy or earlier at the request of the life insurance
					 applicant.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.55b - Maintenance of surrender comparison index disclosure delivery certification

Current through Register Vol. 54, No. 28, July 13, 2024
The insurer shall maintain the agent's certification of
					 surrender comparison index disclosure delivery in its appropriate files for at
					 least 3 years or until the conclusion of the next succeeding regular
					 examination by the insurance department of its domicile, whichever is later.
					 The absence of the agent's certification from the appropriate files of the
					 insurer shall constitute prima facie evidence that no surrender comparison
					 index disclosure was provided to the prospective purchaser of life
					 insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.55c - Certification of surrender comparison index disclosure delivery by insurers delivering policies by mail

Current through Register Vol. 54, No. 28, July 13, 2024
If it is the practice of the insurer to mail the policy
					 directly to the applicant, the appropriate officer of the insurer shall
					 certify, in conjunction with the annual statement of the insurer, that in
					 accordance with this subchapter surrender comparison index disclosures have
					 been included with policies at delivery or provided earlier upon request.
					 Failure to so certify shall constitute prima facie evidence that surrender
					 comparison index disclosures have not been provided to prospective purchasers
					 of life insurance.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.56 - Effect on other insurance laws or regulations

Current through Register Vol. 54, No. 28, July 13, 2024
This subchapter does not limit the authority of the
					 Commissioner or the responsibilities of an individual or entity selling
					 insurance under another chapter or law, unless such is specifically stated in
					 the body of that chapter or law.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Section 83.57 - Penalties

Current through Register Vol. 54, No. 28, July 13, 2024
(a) For failing to
				  make adequate disclosure of basic information about the product being sold,
				  after an administrative hearing as provided by law, an agent or broker may be
				  subject to the penalties provided in section 639 of The Insurance Department
				  Act of one thousand nine hundred and twenty-one (40 P. S. §
											279) for conduct that would disqualify an
				  agent from the initial issuance of a license under section 603 of that act
				  (40
				  P. S. §
											233) and for misrepresenting the
				  terms of an insurance policy, a violation of section 637 of The Insurance
				  Department Act of one thousand nine hundred and twenty-one (40 P. S. §
											277).
(b) For failing to insure adequate disclosure
				  of basic information about the product being sold, after a hearing as provided
				  by law, a company may be subject to the penalties provided in section 350 of
				  The Insurance Company Law of 1921 (40 P. S. §
											475) for violations of sections 347-349 of
				  that act (40 P. S. §§
											472-474).
(c) For failing to insure adequate disclosure
				  of basic information about the product being sold, after a hearing as provided
				  by law, a fraternal benefit society may be subject to the penalties provided in
				  sections 817(b) and 904(d) of the Fraternal Benefit Society Code (40 P. S.
				  §§
											1141-817(b) and
				  1141-904(d)).
(d) In addition to subsections (a)-(c),
				  failure to make the disclosure outlined in this subchapter may be considered a
				  violation of the Unfair Insurance Practices Act (40 P. S. §§
											1171.1-1171.15).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Appendix A

Current through Register Vol. 54, No. 28, July 13, 2024
Click to view
					 image
This appendix cited in 31 Pa. Code §
												83.3 (relating to disclosure
						statement).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 83 - DISCLOSURES IN SOLICITATION OF LIFE INSURANCE › Subchapter B - COST DISCLOSURES IN THE SOLICITATION OF LIFE INSURANCE › Appendix B - Surrender Comparison Index Disclosure Per $1,000 of Face Amount of Basic Insurance

Current through Register Vol. 54, No. 28, July 13, 2024
Name of Insurer
Name of Insurer ____________ Age ____________ Sex
					 ____________ Face Amount of Policy ___
Descriptive Title of Policy (
Whole Life, 20 year
					 decreasing term, endowment at age 65)
Policy Number..............
10 Year Surrender Index: ___ *(reflects equivalent level
					 annual dividend and a termination dividend in the total amount. ___ )
20 Year Surrender Index: ___ *(reflects equivalent level
					 annual dividend and a termination dividend in the total amount. ___ )
*Based on 19 ___ Dividend Scale. Dividends are not
					 guaranteed and are subject to change.
The Surrender Comparison Index was designed to measure the
					 relative cost of life insurance protection and may be useful for comparison of
					 similar policies offered by other companies. Technically, the Index shows the
					 relationship between the amounts paid by the insured (the average annual
					 premiums minus any average annual dividend) and the amounts paid by the insurer
					 (the cash value of the policy in the event of surrender over periods of 10 and
					 20 years all adjusted for compound interest at the rate of four percent per
					 annum to reflect the timing of the payments).
*The Index reflects illustrative dividends based upon the
					 current year's dividend scale. In the case of participating life insurance
					 policies, the Index may change since future dividends are subject to change
					 depending on the company's experience. If future dividends increase within the
					 10 or 20 year period, the Index will be lower; if dividends decrease, the Index
					 will be higher.
When comparing similar policies, if all things are equal,
					 the policy with the lower Index is generally the lower cost policy and the
					 better buy in the event that the policy was surrendered at the end of the
					 designated period. If death would occur during the designated period, the
					 policy with the lower Index would not necessarily be the lower cost policy. The
					 Index does not take into account, among other things (1) the value of the
					 services of an agent or company; (2) the relative strength and reputation of
					 the company; and (3) small differences in policy provisions. The Index does
					 assume that annual premiums are paid, *that dividends are taken in cash or
					 applied to premiums, and that no additional benefit provisions are
					 included.
*If inapplicable, section may be deleted entirely or
					 clearly marked "Not Applicable."
This appendix cited in 31 Pa. Code §
												83.55 (relating to
						delivery).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Section 84.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter is to implement section 301(c)(1) of the act
				  (40
				  P.S. §
										71(c)(1)) and
				  section 410A(e)(8)(F) of the law (40 P.S. §
										510.1(e)(8)(F)) which
				  authorize the Commissioner to promulgate regulations specifying tables adopted
				  after 1980 by the NAIC for use in determining minimum nonforfeiture standards
				  and minimum standards for valuation.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Section 84.3 - 1983 Table "a," Annuity 2000 Mortality Table, 1983 GAM Table, 1994 GAR Table and 2012 IAR Mortality Table

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				1983 Table "a," the Annuity 2000 Mortality Table excluding mortality rates
				independent of sex, the 1983 GAM Table, the 1994 GAR Table and the 2012 IAR
				Mortality Table are approved by the Commissioner as annuity mortality tables
				for valuation.
(b) At the option of
				the company, the 1983 Table "a" may be used in determining the minimum standard
				of valuation for an individual annuity or pure endowment contract issued prior
				to January 1, 1986, and for an annuity or pure endowment purchased prior to
				January 1, 1986, under a group annuity or pure endowment contract.
(c) The 1983 Table "a," or the Annuity 2000
				Mortality Table excluding mortality rates independent of sex shall be used in
				determining the minimum standard of valuation for an individual annuity or pure
				endowment contract issued on or after January 1, 1986, and prior to June 26,
				1999.
(d) The Annuity 2000
				Mortality Table excluding mortality rates independent of sex shall be used,
				except as provided by subsections (e) and (f), in determining the minimum
				standard of valuation for an individual annuity or pure endowment contract
				issued on or after June 26, 1999.
(e) Except as provided in subsection (f), the
				2012 IAR Mortality Table shall be used for determining the minimum standard of
				valuation for any individual annuity or pure endowment contract issued on or
				after August 8, 2016.
(f) The 1983
				Table "a" shall be used in determining the minimum standard of valuation for an
				individual annuity or pure endowment contract issued on or after June 26, 1999,
				when the contract is based on life contingencies and is issued to fund periodic
				benefits arising from:
(1) Settlements of
				claims pertaining to court settlements or out of court settlements from tort
				actions.
(2) Settlements of claims,
				such as worker's compensation claims.
(3) Settlements of long term disability
				claims when a temporary or life annuity has been used instead of continuing
				disability payments.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Section 84.3a - Application of the 2012 IAR Mortality Table

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In using the 2012 IAR Mortality Table,
				the mortality rate for a person age x in year (2012 + n) is calculated as
				follows:
qx2012+n =
				qx2012
(1-
G2x)n.
(b) The resulting
qx
										2012+n
shall be rounded to
				three decimal places per 1,000, for example, 0.741 deaths per 1,000. This
				rounding shall occur according to the formula in subsection (a), starting at
				the 2012 period table rate.
(1) For example,
				for a male age 30,
qx2012 =
0.741.
qx
											2013
= 0.741 * (1-0.010)
				  [caret ] 1 = 0.73359, which is rounded to 0.734.
qx
											2014
= 0.741 * (1-0.010)
				  [caret ] 2 = 0.7262541, which is rounded to 0.726.
(2) A method leading to incorrect rounding
				would be to calculate
qx
											2014
as
qx
											2013
* (1-0.010), or 0.734 *
				0.99 = 0.727. It is incorrect to use the already rounded
qx
											2013
to calculate
qx
											2014
.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Section 84.6 - 1980 CSO and 1980 CET Smoker and Nonsmoker Mortality Tables

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The 1980 CSO Smoker and Nonsmoker
				Mortality Tables, with or without Ten-Year Select Mortality Factors, and the
				1980 CET Smoker and Nonsmoker Mortality Tables were adopted as recognized
				mortality tables for life insurance in December 1983 by the NAIC.
(b) The Commissioners 1980 Standard Ordinary
				Mortality Table with or without Ten-Year Select Mortality Factors and the
				Commissioners 1980 Extended Term Insurance Table are tables prescribed for use
				in determining the minimum nonforfeiture standard and the minimum standard of
				valuation of certain policies in section 410A of the law (40 P.S. §
										510.1) and sections 301 and 303 of the act
				(40
				P.S. §§
										71 and
				73).
(c) Subject to the conditions in subsection
				(d), the tables mentioned in subsection (a) are approved by the Commissioner
				for use in determining the minimum nonforfeiture standard and the minimum
				standard of valuation for policies of ordinary insurance issued on or after the
				operative date of section 410A(e) of the law (40 P.S. §
										510.1(e)). In determining
				the minimum nonforfeiture standard and the minimum standard of valuation for
				the policies, and subject to the conditions in subsection (d), the company at
				its option may make the following substitutions:
(1) The 1980 CSO Smoker and Nonsmoker
				Mortality Tables, with or without Ten-Year Select Mortality Factors, may be
				substituted for the Commissioners 1980 Standard Ordinary Mortality Table, with
				or without Ten-Year Select Mortality Factors.
(2) The 1980 CET Smoker and Nonsmoker
				Mortality Tables may be substituted for the Commissioners 1980 Extended Term
				Insurance Table.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Appendix I

Current through Register Vol. 54, No. 28, July 13, 2024
2012 IAM Period Table
Female, Age Nearest Birthday
AGE
1000 .
qx
2012
AGE
1000 .
qx
2012
AGE
1000 .
qx
2012
AGE
1000 .
qx
2012
0
1.621
30
0.300
60
3.460
90
88.377
1
0.405
31
0.321
61
3.916
91
97.491
2
0.259
32
0.338
62
4.409
92
107.269
3
0.179
33
0.351
63
4.933
93
118.201
4
0.137
34
0.365
64
5.507
94
130.969
5
0.125
35
0.381
65
6.146
95
146.449
6
0.117
36
0.402
66
6.551
96
163.908
7
0.110
37
0.429
67
7.039
97
179.695
8
0.095
38
0.463
68
7.628
98
196.151
9
0.088
39
0.504
69
8.311
99
213.150
10
0.085
40
0.552
70
9.074
100
230.722
11
0.086
41
0.600
71
9.910
101
251.505
12
0.094
42
0.650
72
10.827
102
273.007
13
0.108
43
0.697
73
11.839
103
295.086
14
0.131
44
0.740
74
12.974
104
317.591
15
0.156
45
0.780
75
14.282
105
340.362
16
0.179
46
0.825
76
15.799
106
362.371
17
0.198
47
0.885
77
17.550
107
384.113
18
0.211
48
0.964
78
19.582
108
400.000
19
0.221
49
1.051
79
21.970
109
400.000
20
0.228
50
1.161
80
24.821
110
400.000
21
0.234
51
1.308
81
28.351
111
400.000
22
0.240
52
1.460
82
32.509
112
400.000
23
0.245
53
1.613
83
37.329
113
400.000
24
0.247
54
1.774
84
42.830
114
400.000
25
0.250
55
1.950
85
48.997
115
400.000
26
0.256
56
2.154
86
55.774
116
400.000
27
0.261
57
2.399
87
63.140
117
400.000
28
0.270
58
2.700
88
71.066
118
400.000
29
0.281
59
3.054
89
79.502
119
400.000
120
1000.000
The provisions of this Appendix I issued under sections
					 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S.
					 §§
												66,
					 186,
					 411 and
					 412); sections 301 and 303 of
					 The Insurance Department Act of 1921 (40 P.S. §§
												71 and
					 73); and section 410A of The
					 Insurance Company Law of 1921 (40 P.S. §
												510.1).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Appendix II

Current through Register Vol. 54, No. 28, July 13, 2024
2012 IAM Period Table
Male, Age Nearest Birthday
AGE
1000 .
qx
2012
AGE
1000 .
qx
2012
AGE
1000 .
qx
2012
AGE
1000 .
qx
2012
0
1.605
30
0.741
60
5.096
90
109.993
1
0.401
31
0.751
61
5.614
91
123.119
2
0.275
32
0.754
62
6.169
92
137.168
3
0.229
33
0.756
63
6.759
93
152.171
4
0.174
34
0.756
64
7.398
94
168.194
5
0.168
35
0.756
65
8.106
95
185.260
6
0.165
36
0.756
66
8.548
96
197.322
7
0.159
37
0.756
67
9.076
97
214.751
8
0.143
38
0.756
68
9.708
98
232.507
9
0.129
39
0.800
69
10.463
99
250.397
10
0.113
40
0.859
70
11.357
100
268.607
11
0.111
41
0.926
71
12.418
101
290.016
12
0.132
42
0.999
72
13.675
102
311.849
13
0.169
43
1.069
73
15.150
103
333.962
14
0.213
44
1.142
74
16.860
104
356.207
15
0.254
45
1.219
75
18.815
105
380.000
16
0.293
46
1.318
76
21.031
106
400.000
17
0.328
47
1.454
77
23.540
107
400.000
18
0.359
48
1.627
78
26.375
108
400.000
19
0.387
49
1.829
79
29.572
109
400.000
20
0.414
50
2.057
80
33.234
110
400.000
21
0.443
51
2.302
81
37.533
111
400.000
22
0.473
52
2.545
82
42.261
112
400.000
23
0.513
53
2.779
83
47.441
113
400.000
24
0.554
54
3.011
84
53.233
114
400.000
25
0.602
55
3.254
85
59.855
115
400.000
26
0.655
56
3.529
86
67.514
116
400.000
27
0.688
57
3.845
87
76.340
117
400.000
28
0.710
58
4.213
88
86.388
118
400.000
29
0.727
59
4.631
89
97.634
119
400.000
120
1000.000
The provisions of this Appendix II issued under sections
					 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S.
					 §§
												66,
					 186,
					 411 and
					 412); sections 301 and 303 of
					 The Insurance Department Act of 1921 (40 P.S. §
												71 and
					 73); and section 410A of The
					 Insurance Company Law of 1921 (40 P.S. §
												510.1).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Appendix III

Current through Register Vol. 54, No. 28, July 13, 2024
Projection Scale G2
Female, Age Nearest Birthday
AGE
G2x
AGE
G2x
AGE
G2x
AGE
G2x
0
0.010
30
0.010
60
0.013
90
0.006
1
0.010
31
0.010
61
0.013
91
0.006
2
0.010
32
0.010
62
0.013
92
0.005
3
0.010
33
0.010
63
0.013
93
0.005
4
0.010
34
0.010
64
0.013
94
0.004
5
0.010
35
0.010
65
0.013
95
0.004
6
0.010
36
0.010
66
0.013
96
0.004
7
0.010
37
0.010
67
0.013
97
0.003
8
0.010
38
0.010
68
0.013
98
0.003
9
0.010
39
0.010
69
0.013
99
0.002
10
0.010
40
0.010
70
0.013
100
0.002
11
0.010
41
0.010
71
0.013
101
0.002
12
0.010
42
0.010
72
0.013
102
0.001
13
0.010
43
0.010
73
0.013
103
0.001
14
0.010
44
0.010
74
0.013
104
0.000
15
0.010
45
0.010
75
0.013
105
0.000
16
0.010
46
0.010
76
0.013
106
0.000
17
0.010
47
0.010
77
0.013
107
0.000
18
0.010
48
0.010
78
0.013
108
0.000
19
0.010
49
0.010
79
0.013
109
0.000
20
0.010
50
0.010
80
0.013
110
0.000
21
0.010
51
0.010
81
0.012
111
0.000
22
0.010
52
0.011
82
0.012
112
0.000
23
0.010
53
0.011
83
0.011
113
0.000
24
0.010
54
0.011
84
0.010
114
0.000
25
0.010
55
0.012
85
0.010
115
0.000
26
0.010
56
0.012
86
0.009
116
0.000
27
0.010
57
0.012
87
0.008
117
0.000
28
0.010
58
0.012
88
0.007
118
0.000
29
0.010
59
0.013
89
0.007
119
0.000
120
0.000
The provisions of this Appendix III issued under sections
					 206, 506, 1501 and 1502 of The Admistrative Code of 1929 (71 P.S. §§
												66,
					 186,
					 411 and
					 412); sections 301 and 303 of
					 The Insurance Department Act of 1921 (40 P.S. §§
												71 and
					 73); and section 410A of The
					 Insurance Company Law of 1921 (40 P.S. §
												510.1).
This appendix cited in 31 Pa. Code §
											84.2 (relating to
					 definitions).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84 - TABLES APPROVED FOR USE IN DETERMINING MINIMUM NONFORFEITURE STANDARDS AND MINIMUM STANDARDS FOR VALUATION › Appendix IV

Current through Register Vol. 54, No. 28, July 13, 2024
Projection Scale G2
Male, Age Nearest Birthday
AGE
G2x
AGE
G2x
AGE
G2x
AGE
G2x
0
0.010
30
0.010
60
0.015
90
0.007
1
0.010
31
0.010
61
0.015
91
0.007
2
0.010
32
0.010
62
0.015
92
0.006
3
0.010
33
0.010
63
0.015
93
0.005
4
0.010
34
0.010
64
0.015
94
0.005
5
0.010
35
0.010
65
0.015
95
0.004
6
0.010
36
0.010
66
0.015
96
0.004
7
0.010
37
0.010
67
0.015
97
0.003
8
0.010
38
0.010
68
0.015
98
0.003
9
0.010
39
0.010
69
0.015
99
0.002
10
0.010
40
0.010
70
0.015
100
0.002
11
0.010
41
0.010
71
0.015
101
0.002
12
0.010
42
0.010
72
0.015
102
0.001
13
0.010
43
0.010
73
0.015
103
0.001
14
0.010
44
0.010
74
0.015
104
0.000
15
0.010
45
0.010
75
0.015
105
0.000
16
0.010
46
0.010
76
0.015
106
0.000
17
0.010
47
0.010
77
0.015
107
0.000
18
0.010
48
0.010
78
0.015
108
0.000
19
0.010
49
0.010
79
0.015
109
0.000
20
0.010
50
0.010
80
0.015
110
0.000
21
0.010
51
0.011
81
0.014
111
0.000
22
0.010
52
0.011
82
0.013
112
0.000
23
0.010
53
0.012
83
0.013
113
0.000
24
0.010
54
0.012
84
0.012
114
0.000
25
0.010
55
0.013
85
0.011
115
0.000
26
0.010
56
0.013
86
0.010
116
0.000
27
0.010
57
0.014
87
0.009
117
0.000
28
0.010
58
0.014
88
0.009
118
0.000
29
0.010
59
0.015
89
0.008
119
0.000
120
0.000
The provisions of this Appendix IV issued under sections
					 206, 506, 1501 and 1502 of The Admistrative Code of 1929 (71 P.S. §§
												66,
					 186,
					 411 and
					 412); sections 301 and 303 of
					 The Insurance Department Act of 1921 (40 P.S. §§
												71 and
					 73); and section 410A of The
					 Insurance Company Law of 1921 (40 P.S. §
												510.1).
The appendix cited in 31 Pa. Code §
											84.2 (relating to
					 definitions).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84a - MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP HEALTH AND ACCIDENT INSURANCE CONTRACTS › Section 84a.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
The purpose of this chapter is to set forth the minimum
				  standards of valuation required by
				  40 Pa.C.S. §
										7124(c)(1) and
				  (2) (relating to minimum standard for
				  accident and health insurance contracts).
The provisions of this §
											84a.1 amended under sections 206,
					 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S.
					 §§
												66,
					 186,
					 411 and
					 412); sections
					 301.1 and
					 311.1 of The Insurance Department
					 Act of 1921 (40 P.S. §§
												71.1 and
					 93); and
					 40 Pa.C.S. §
												7124(c)(1) and
					 (2).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84a - MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP HEALTH AND ACCIDENT INSURANCE CONTRACTS › Section 84a.4 - Claim reserves

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General requirements
.
(1)
				Claim reserves are required for incurred but unpaid claims on health and
				accident insurance contracts. When reserving for contracts with an elimination
				period, the duration of disablement commences on the date that benefits would
				have begun to accrue had there been no elimination period.
(2) Appropriate claim expense reserves are
				required with respect to the estimated expense of settlement of incurred but
				unpaid claims.
(3) The reserves for
				prior valuation years are to be tested for adequacy and reasonableness along
				the lines of claim runoff schedules in accordance with the statutory financial
				statement including consideration of residual unpaid liability.
(4) For claim reserves on policies that
				require contract reserves, the claim incurral date constitutes the "issue date"
				for determining the table and interest rate for claim reserves.
(5) The maximum interest rate for claim
				reserves is specified in Appendix A (relating to specific standards for
				morbidity, interest and mortality).
(6) The requirements for claims reserves on
				all claims incurred on or after January 1, 2017, will be as described in the
				Valuation Manual based on the incurred date of the claim.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84a - MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP HEALTH AND ACCIDENT INSURANCE CONTRACTS › Section 84a.5 - Premium reserves

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General requirements
.
(1)
				Unearned premium reserves are required for all contracts, except single premium
				credit health and accident insurance contracts, with respect to the period of
				coverage for which premiums, other than premiums paid in advance, have been
				paid beyond the date of valuation.
(2) If premiums due and unpaid are carried as
				an asset, the premiums shall be treated as premiums in force, subject to
				unearned premium reserve determination. The value of unpaid commissions,
				premium taxes and the cost of collection associated with due and unpaid
				premiums shall be carried as an offsetting liability.
(3) The gross premiums paid in advance for a
				period of coverage commencing after the next premium due date which follows the
				date of valuation may be appropriately discounted to the valuation date and
				shall be held either as a separate liability or as an addition to the unearned
				premium reserve which would otherwise be required as a minimum.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84a - MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP HEALTH AND ACCIDENT INSURANCE CONTRACTS › Section 84a.6 - Contract reserves

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General requirements.
(1)
				Contract reserves are required for the following:
(i) The individual and group contracts with
				which level premiums are used.
(ii)
				The individual and group contracts with respect to which, due to the gross
				premium pricing structure at issue, the value of the future benefits at any
				time exceeds the value of any appropriate future valuation net premiums at that
				time. This evaluation may be applied on a rating block basis if the total
				premiums for the block were developed to support the total risk assumed and
				expected expenses for the block each year, and an actuary certifies the premium
				development. The actuary should state in the certification submitted to the
				Department with the reserve valuation data that premiums for the rating block
				were developed such that each year's premium was intended to cover that year's
				costs without any prefunding. If the premium is also intended to recover costs
				for prior years, the actuary shall also disclose the reasons for and magnitude
				of the recovery. The values specified in this subsection shall be determined on
				the basis specified in subsection (b).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84a - MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP HEALTH AND ACCIDENT INSURANCE CONTRACTS › Section 84a.7 - Waiver of premium reserves

Current through Register Vol. 54, No. 28, July 13, 2024
Waiver of premium reserves involves several special
				  considerations. The disability valuation tables promulgated by the National
				  Association of Insurance Commissioners, or a successor thereto, are based on
				  exposures that include contracts on premium waiver as in-force contracts.
				  Therefore, contract reserves based on these tables are not reserves on "active
				  lives" but rather reserves on contracts "in force." This is true for the 1964
				  CDT, 1985 CIDA and 1985 CIDB tables.
(1) Tabular reserves using one of these
				tables shall value reserves on the following basis:
(i) Claim reserves shall include reserves for
				premiums expected to be waived, valuing as a minimum the valuation net premium
				being waived.
(ii) Premium reserves
				shall include contracts on premium waiver as in-force contracts, valuing as a
				minimum the unearned modal valuation net premium being waived.
(iii) Contract reserves shall include
				recognition of the waiver of premium benefit in addition to other contract
				benefits provided for, valuing as a minimum the valuation net premium to be
				waived.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84a - MINIMUM RESERVE STANDARDS FOR INDIVIDUAL AND GROUP HEALTH AND ACCIDENT INSURANCE CONTRACTS › Section 84a.8 - Reinsurance

Current through Register Vol. 54, No. 28, July 13, 2024
Increases to, or credits against reserves carried, arising
				  because of reinsurance assumed or reinsurance ceded, shall be determined in a
				  manner consistent with this chapter and with applicable provisions of the
				  reinsurance contracts which affect the insurer's liabilities.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
The purpose of this chapter is to promulgate requirements for
				  statements of actuarial opinions and for supporting memoranda as required by
				  section 301(g) of the act (40 P. S. §
										71(g)) and to provide
				  guidance on the meaning of adequacy of reserves.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.2 - Applicability

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter applies to life insurance companies and
				  fraternal benefit societies doing business in this Commonwealth. This chapter
				  shall be applied in a manner that allows the appointed actuary to utilize
				  professional judgment in performing the asset adequacy analysis and developing
				  the actuarial opinion and supporting memoranda, consistent with relevant
				  actuarial standards of practice. However, the Commissioner will have the
				  authority to require specific methods of actuarial analysis and actuarial
				  assumptions when, in the Commissioner's judgment, these specifications are
				  necessary for an acceptable opinion to be rendered relative to the adequacy of
				  reserves and related items.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 84b - ACTUARIAL OPINION AND MEMORANDUM › Section 84b.3 - Scope

Current through Register Vol. 54, No. 28, July 13, 2024
A statement of opinion on 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 asset adequacy analysis), and a memorandum in
				  support thereof in accordance with §
									84b.9 (relating to description of
				  actuarial memorandum including an asset adequacy analysis and regulatory asset
				  adequacy issues summary) shall be required each year.