reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › LIFE INSURANCE DISCLOSURE › Section 284-23-210 - Scope

Current through Register Vol. 24-14, July 15, 2024
(1) Except for the
				exemptions specified in subsection (2) of this section, this regulation shall
				apply to any solicitation, negotiation or procurement of life insurance
				occurring within this state. This regulation shall apply to any issuer of life
				insurance contracts including fraternal benefit societies.
(2) Unless specifically included, this
				regulation shall not apply to:
(a)
				Annuities.
(b) Credit life
				insurance.
(c) Group life insurance
				whose cost is borne in whole or in part by the individual insured's employer or
				by an association of which the individual insured is a member.
(d) Life insurance policies issued in
				connection with pension and welfare plans as defined by and which are subject
				to the federal Employee Retirement Income Security Act of 1974
				(ERISA).
(e) Variable life
				insurance under which the death benefits and cash values vary in accordance
				with unit values of investments held in a separate account.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › LIFE INSURANCE DISCLOSURE › Section 284-23-220 - Definitions

Current through Register Vol. 24-14, July 15, 2024
For the purposes of this regulation, the following
				  definitions shall apply:
(1)
				"
Buyer's Guide
" is a document that contains, and is limited
				to, the current buyer's guide, which has been recommended for use by the
				National Association of Insurance Commissioners. A company must use the current
Buyer's Guide
no later than six months after approval by the
				National Association of Insurance Commissioners.
(2) Cost comparison indexes:
(a) "Surrender cost comparison index --
				Guaranteed basis" is calculated by applying the following steps:
(i) Step one: Determine the guaranteed cash
				surrender value, if any, available at the end of the tenth and twentieth policy
				years.
(ii) Step two: Divide the
				result of step one by an interest factor that converts it into one equivalent
				level annual amount that, if paid at the beginning of each year, would accrue
				to the values in step one over the respective periods stipulated in step one.
				If the period is ten years, the factor is 13.207 and if the period is twenty
				years, the factor is 34.719.
(iii)
				Step three: Determine the equivalent guaranteed level premium by accumulating
				each guaranteed annual premium payable for the basic policy or rider at five
				percent interest compounded annually to the end of the period stipulated in
				step one and dividing the result by the respective factors stated in step two.
				(This amount is the guaranteed annual premium payable for a level premium
				plan.)
(iv) Step four: Subtract the
				result of step two from step three.
(v) Step five: Divide the result of step four
				by the number of thousands of the equivalent guaranteed level death benefit,
				using the company's guaranteed rate schedule to determine the amount payable
				upon death for purposes of subsection (3) of this section, to arrive at the
				"surrender cost comparison index -- Guaranteed basis."
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › LIFE INSURANCE DISCLOSURE › Section 284-23-230 - Duties of insurers

Current through Register Vol. 24-14, July 15, 2024
(1) The insurer
				shall provide a
Buyer's Guide
and a policy summary to any
				prospective purchaser upon request.
(2) The insurer shall provide, to all
				prospective purchasers, a
Buyer's Guide
prior to accepting the
				applicant's initial application, premium, or premium deposit.
(3) A policy summary must be delivered with
				or prior to delivery of a policy provided, however, that:
(a) If an illustration, subject to the
				requirements of chapter 48.23A RCW (Life insurance policy illustrations), is
				used in the sale of a policy, a policy summary does not have to be provided.
				Only guarantees may be shown in the policy summary for policies written with an
				application date on or after the effective date of chapter 48.23A RCW (Life
				insurance policy illustrations).
(b) If the policy for which application is
				made or its policy summary does not contain an unconditional refund provision
				of at least ten days, the policy summary must be delivered prior to delivery of
				the policy.
(c) If the equivalent
				guaranteed level death benefit of the policy for which application is made does
				not exceed five thousand dollars, the requirement for providing a policy
				summary will be satisfied by delivery of a written statement containing the
				information described in WAC
				284-23-220(6)(b), (c), (d), (e)(i), (ii), (iii),
				(iv), (f), (g), (h), and (i).
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › LIFE INSURANCE DISCLOSURE › Section 284-23-235 - Special plans and solicitation by direct response

Current through Register Vol. 24-14, July 15, 2024
(1) In the case of a solicitation by direct
				response methods, the insurer shall provide a
Buyer's Guide
and a policy summary prior to accepting the application. However, if the policy
				contains an unconditional refund provision of at least ten days, the
Buyer's Guide
and a policy summary may be delivered with the
				policy.
(2) Special plans. This
				subsection modifies the application of this rule as indicated for certain
				special plans of life insurance:
(a)
				"Flexible premium and benefit policies." For policies sold without
				illustrations which:
(i) Permit the
				policyowner to vary the amount and timing of premium payments, or the amount
				payable on death, all indexes and other data shall be displayed assuming
				specific schedules of anticipated premiums and death benefits at
				issue.
(ii) Provide for a cash
				value that is based on separately identified interest credits and mortality and
				expense charges applied to the policy, then the policy summary shall indicate
				when the policy will expire based on the interest rates and mortality and other
				charges guaranteed in the policy and the anticipated or assumed annual premiums
				shown in the policy summary.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › LIFE INSURANCE DISCLOSURE › Section 284-23-240 - General rules

Current through Register Vol. 24-14, July 15, 2024
(1) Each insurer
				must maintain at its home office or principal office, a complete file
				containing one copy of each document authorized by the insurer for use under
				this regulation. The file must contain one copy of each authorized form for a
				period of three years following the date of its last authorized use unless
				otherwise provided by this regulation.
(2) An insurance producer must inform the
				prospective purchaser, prior to commencing any presentation that may lead to
				the sale of life insurance that the insurance producer is acting as an
				insurance producer with a life insurance line of authority. In sales situations
				in which an insurance producer is not involved, the insurer must identify its
				full name.
(3) Terms such as
				financial planner, investment advisor, financial consultant or financial
				counselor must not be used by an insurance producer unless the insurance
				producer is engaged in an advisory business and receives a substantial part of
				their compensation from that source unrelated to the sale of
				insurance.
(4) There must be no
				reference to a dividend or nonguaranteed element in the policy summary. Any
				reference to a dividend or a nonguaranteed element in the sales process must
				comply with the provisions of chapter 48.23A RCW.
(5) Any statement regarding the use of the
				life insurance cost comparison indexes must include an explanation to the
				effect that the indexes are useful only for the comparison of the relative
				costs of two or more similar policies.
Statutory Authority:
					 RCW
					 48.02.060 and
					 48.30.010. 12-05-051 (Matter No. R
					 2011-21), §
											284-23-240, filed 2/14/12,
					 effective 3/16/12. Statutory Authority:
					 RCW
					  48.02.020 and
					 48.30.010. 98-11-003 (Matter No. R
					 97-04), §
											284-23-240, filed 5/6/98,
					 effective 6/6/98. Statutory Authority:
					 RCW
					  48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-053 (Order R
					 79-2), §
											284-23-240, filed 6/25/79,
					 effective 1/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › LIFE INSURANCE DISCLOSURE › Section 284-23-250 - Failure to comply

Current through Register Vol. 24-14, July 15, 2024
Failure of an insurer or an agent to provide or deliver a
Buyer's Guide
, a policy summary, or policy data as provided
				  under WAC
				  284-23-230 and
				  284-23-235 shall constitute an
				  unfair method of competition and an unfair act or practice, under
				  RCW
				   48.30.010.
Statutory Authority:
					 RCW
					 48.02.020 and
					 48.30.010. 98-11-003 (Matter No. R
					 97-04), §
											284-23-250, filed 5/6/98,
					 effective 6/6/98. Statutory Authority:
					 RCW
					  48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-053 (Order R
					 79-2), §
											284-23-250, filed 6/25/79,
					 effective 1/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-300 - Background

Current through Register Vol. 24-14, July 15, 2024
This regulation, WAC
				  284-23-300 through 284-23-380, is
				  based upon the model Annuity and Deposit Fund Disclosure Regulation adopted by
				  the National Association of Insurance Commissioners on June 16,
				  1978.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-052 (Order R
					 79-1), §
											284-23-300, filed 6/25/79,
					 effective 4/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-310 - Purpose

Current through Register Vol. 24-14, July 15, 2024
(1) The purpose of
				this regulation is to require insurers to deliver to prospects for annuity
				contracts, or for deposit funds accepted in conjunction with life insurance
				policies or annuity contracts, information which helps the prospect select an
				annuity or deposit fund, or both, appropriate to the prospect's needs, improves
				the prospect's understanding of the basic features of the plan under
				consideration and improves the prospect's ability to evaluate the relative
				benefits of similar plans.
(2) This
				regulation does not prohibit the use of additional material which is not in
				violation of this regulation or any other statute or regulation.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-052 (Order R
					 79-1), §
											284-23-310, filed 6/25/79,
					 effective 4/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-320 - Scope

Current through Register Vol. 24-14, July 15, 2024
(1) To the extent
				hereinafter provided, this regulation shall apply to any solicitation,
				negotiation or procurement of annuity contracts, or deposit funds accepted in
				conjunction with individual life insurance policies or with annuity contracts
				which are subject to this regulation, occurring within this state. The
				regulation shall apply to any issuer of life policies or annuity contracts,
				including fraternal mutual life insurers.
(2) This regulation shall apply to:
(a) Individual deferred annuities other than:
				(i) Variable annuities; (ii) investment annuities; and (iii) contracts
				registered with the Federal Securities and Exchange Commission.
(b) Deposit funds (i.e., arrangements under
				which amounts to accumulate at interest are paid in addition to life insurance
				premiums or annuity considerations under provisions of individual life
				insurance policies or annuity contracts).
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-340 - Contract summary, requirements

Current through Register Vol. 24-14, July 15, 2024
The contract summary must be a separate document. All
				  information required to be disclosed must be set out in such a manner as not to
				  minimize or render any portion thereof obscure. Any amounts which remain level
				  for two or more contract years may be represented by a single number if it is
				  clearly indicated what amounts are applicable for each contract year. Amounts
				  in WAC 284-23-330(4), (6), (7) and
				  (9)  shall, in the case of flexible premium
				  annuity contracts, be determined either according to an anticipated pattern of
				  consideration payments or on the assumption that considerations payable will be
				  $1,000 per year. If not specified in the contract, annuity payments shall be
				  assumed to commence at age 65 or 10 years from issue, whichever is later. Zero
				  amounts shall be displayed as zero and shall not be displayed as blank
				  spaces.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-052 (Order R
					 79-1), §
											284-23-340, filed 6/25/79,
					 effective 4/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-350 - Disclosure requirements

Current through Register Vol. 24-14, July 15, 2024
(1) The
				insurer shall provide to all prospective purchasers a contract summary prior to
				accepting the applicant's initial consideration for the annuity contract, or in
				the case of a deposit fund, prior to acceptance of the applicant's initial
				consideration for the associated life insurance policy or annuity contract,
				unless the annuity contract or associated life insurance policy for which
				application is made provides for an unconditional refund period of at least ten
				days or unless the contract summary contains such an unconditional refund
				offer, in which event the contract summary must be delivered with or prior to
				the delivery of the annuity contract or associated life insurance
				policy.
(2) The insurer shall
				provide a contract summary to any prospective purchaser upon request.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-052 (Order R
					 79-1), §
											284-23-350, filed 6/25/79,
					 effective 4/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-360 - General rules

Current through Register Vol. 24-14, July 15, 2024
(1) Each insurer
				must maintain at its home office or principal office, a complete file
				containing one copy of each document authorized by the insurer for use pursuant
				to this regulation. Such file must contain one copy of each authorized form for
				a period of at least three years following the date of its last authorized
				use.
(2) An insurance producer must
				inform the prospective purchaser, prior to commencing a sales presentation,
				that the insurance producer is acting as an insurance producer with a life
				insurance line of authority and must inform the prospective purchaser of the
				full name of the insurer which the insurance producer is representing. In sales
				situations in which an insurance producer is not involved, the insurer must
				identify its full name.
(3) Terms
				such as financial planner, investment advisor, financial consultant, or
				financial counselor must not be used by an insurance producer unless the
				insurance producer is engaged in an advisory business and receives a
				substantial part of their compensation from that source unrelated to the sale
				of insurance.
(4) Any reference to
				dividends or to excess interest credits must include a statement that such
				dividends or credits are not guaranteed.
(5) A presentation of benefits must not
				display guaranteed and nonguaranteed benefits as a single sum unless guaranteed
				benefits are shown separately in close proximity thereto and with equal
				prominence.
(6) Sales promotion
				literature and contract forms must not state or imply that annuity contracts or
				deposit funds are the same as savings accounts or deposits in banking or
				savings institutions. The use of passbooks which resemble savings bank
				passbooks is prohibited.
Statutory Authority:
					 RCW
					 48.02.060 and
					 48.30.010. 12-05-051 (Matter No. R
					 2011-21), §
											284-23-360, filed 2/14/12,
					 effective 3/16/12. Statutory Authority:
					 RCW
					  48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-052 (Order R
					 79-1), §
											284-23-360, filed 6/25/79,
					 effective 4/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ANNUITY AND DEPOSIT FUND DISCLOSURE REGULATION › Section 284-23-370 - Failure to comply

Current through Register Vol. 24-14, July 15, 2024
Failure of an insurer to provide or deliver a contract
				  summary as provided in WAC
				  284-23-350 shall constitute an
				  omission which misrepresents the benefits, advantages, conditions or terms of
				  an annuity contract or of an insurance policy, and shall constitute an unfair
				  method of competition and an unfair act or practice pursuant to
				  RCW
				   48.30.010.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010, and
					 48.30.090. 79-07-052 (Order R
					 79-1), §
											284-23-370, filed 6/25/79,
					 effective 4/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-400 - Purpose

Current through Register Vol. 24-14, July 15, 2024
The purpose of this regulation is:
(1) To regulate the activities of insurers
				and insurance producers with respect to the replacement of existing life
				insurance and annuities;
(2) To
				protect the interests of life insurance and annuity purchasers by establishing
				minimum standards of conduct to be observed in replacement transactions by:
(a) Assuring that the purchaser receives
				information with which a decision can be made in his or her own best
				interest;
(b) Reducing the
				opportunity for misrepresentation and incomplete disclosures; and
(c) Establishing penalties for failure to
				comply with the requirements of this regulation.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-410 - Definition of replacement

Current through Register Vol. 24-14, July 15, 2024
"Replacement" means any transaction in which new life
				  insurance or a new annuity is to be purchased, and it is known or should be
				  known to the proposing insurance producer, or to the proposing insurer if there
				  is no insurance producer, that by reason of the transaction, existing life
				  insurance or annuity has been or is to be:
(1) Lapsed, forfeited, surrendered, or
				partially surrendered, assigned to the replacing insurer, or otherwise
				terminated;
(2) Converted to
				reduced paid-up insurance, continued as extended term insurance, or otherwise
				reduced in value by the use of nonforfeiture benefits or other policy
				values;
(3) Amended so as to effect
				either a reduction in benefits or in the term for which coverage would
				otherwise remain in force or for which benefits would be paid;
(4) Reissued with any reduction in cash
				value; or
(5) Used in a financed
				purchase or pledged as collateral or subjected to borrowing, whether in a
				single loan or under a schedule of borrowing over a period of time for amounts
				in the aggregate exceeding 25 percent of the loan value set forth in the
				policy.
Statutory Authority:
					 RCW
					  48.02.060(3)(a) and
					 48.17.010(5).
					 11-01-159 (Matter No. R 2010-09), §
											284-23-410, filed 12/22/10,
					 effective 1/22/11. Statutory Authority:
					 RCW
					  48.02.060. 87-14-015 (Order R 87-6), §
											284-23-410, filed 6/23/87,
					 effective 9/1/87; 80-05-098 (Order R 80-5), §
											284-23-410, filed 5/2/80,
					 effective 10/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-420 - Other definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
				"Conservation" means any attempt by the existing insurer or an insurance
				producer to dissuade a policyowner from the replacement of existing life
				insurance or annuity. Conservation does not include such routine administrative
				procedures as late payment reminders, late payment offers or reinstatement
				offers.
(2) "Direct-response sales"
				means any sale of life insurance or annuity where the insurer does not utilize
				an insurance producer in the sale or delivery of the policy.
(3) "Existing insurer" means the insurance
				company whose policy is or will be changed or terminated in such a manner as
				described within the definition of "replacement."
(4) "Existing life insurance or annuity"
				means any life insurance or annuity in force, including life insurance under a
				binding or conditional receipt or a life insurance policy or annuity that is
				within an unconditional refund period.
(5) "Replacing insurer" means the insurance
				company that issues or proposes to issue a new policy or contract which is a
				replacement of existing life insurance or annuity.
(6) "Registered contract" means variable
				annuities, investment annuities, variable life insurance under which the death
				benefits and cash values vary in accordance with unit values of investments
				held in a separate account, or any other contracts issued by life insurance
				companies which are registered with the Federal Securities and Exchange
				Commission.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.17.010(5).
					 11-01-159 (Matter No. R 2010-09), §
											284-23-420, filed 12/22/10,
					 effective 1/22/11. Statutory Authority:
					 RCW
					 48.02.060. 87-14-015 (Order R 87-6), §
											284-23-420, filed 6/23/87,
					 effective 9/1/87; 80-05-098 (Order R 80-5), §
											284-23-420, filed 5/2/80,
					 effective 10/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-430 - Exemptions

Current through Register Vol. 24-14, July 15, 2024
Unless otherwise specifically included, this regulation shall
				  not apply to transactions involving:
(1) Credit life insurance;
(2) Group life insurance or group annuities,
				unless the new coverage under the insurance or annuity is solicited on an
				individual basis and the cost of such coverage is borne substantially by the
				individual;
(3) An application to
				the existing insurer that issued the existing life insurance when a contractual
				change or conversion privilege is being exercised;
(4) Proposed life insurance that is to
				replace life insurance under a binding or conditional receipt issued by the
				same company;
(5) Transactions
				where the replacing insurer and the existing insurer are the same, or are
				subsidiaries or affiliates under common ownership or control; provided,
				however, insurance producers proposing replacement shall comply with the
				requirements of WAC
				284-23-440(1) and (2)(a) and
				(c); and
(6) Registered contracts shall be exempt only
				from the requirements of WAC
				284-23-455(2)(b) and
				(c), requiring provision of policy summary or
				ledger statement information; however, premium or contract contribution amounts
				and identification of the appropriate prospectus or offering circular shall be
				required in lieu thereof.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.17.010(5).
					 11-01-159 (Matter No. R 2010-09), §
											284-23-430, filed 12/22/10,
					 effective 1/22/11. Statutory Authority:
					 RCW
					 48.02.060. 87-14-015 (Order R 87-6), §
											284-23-430, filed 6/23/87,
					 effective 9/1/87; 80-05-098 (Order R 80-5), §
											284-23-430, filed 5/2/80,
					 effective 10/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-440 - Duties of insurance producers

Current through Register Vol. 24-14, July 15, 2024
(1) Each insurance producer who initiates the
				application shall submit to the insurer to which an application for life
				insurance or annuity is presented, with or as part of each application:
(a) A statement signed by the applicant as to
				whether replacement of existing life insurance or annuity is involved in the
				transaction; and
(b) A signed
				statement as to whether the insurance producer knows replacement is or may be
				involved in the transaction.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-450 - Duties of all insurers

Current through Register Vol. 24-14, July 15, 2024
Each insurer shall:
(1) Inform its field representatives or other
				personnel responsible for compliance with this regulation of the requirements
				of this regulation.
(2) Require
				with or as part of each completed application for life insurance or annuity a
				statement signed by the applicant as to whether such proposed insurance or
				annuity will replace existing life insurance or annuity.
Statutory Authority:
					 RCW
					 48.02.060. 87-14-015 (Order R 87-6), §
											284-23-450, filed 6/23/87,
					 effective 9/1/87; 80-05-098 (Order R 80-5), §
											284-23-450, filed 5/2/80,
					 effective 10/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-460 - Duties of insurers with respect to direct-response sales

Current through Register Vol. 24-14, July 15, 2024
(1) If in the
				solicitation of a direct response sale, the insurer did not propose the
				replacement, and a replacement is involved, the insurer shall send to the
				applicant, with the policy, a replacement notice as described in WAC
				284-23-485 or other substantially
				similar form approved by the commissioner. In such instances the insurer may
				omit the portion of the form which is included under the heading "Statement to
				Applicant by Insurance Producer," but including the portion beginning with
				"CAUTION" and continuing through the first three points down to and not
				including the fourth point which begins "Study the comments" without having to
				obtain approval of the form from the commissioner. The applicant's signature is
				not required on the notice.
(2) If
				the insurer proposes the replacement in connection with direct response sales,
				it shall:
(a) Provide to applicants or
				prospective applicants, with or as a part of the application, a replacement
				notice as described in WAC
				284-23-485 or other substantially
				similar form approved by the commissioner.
(b) Request from the applicant with or as
				part of the application, a list of all existing life insurance or annuities to
				be replaced and properly identified by name of insurer, insured, and contract
				number.
(c) Comply with the
				requirements of WAC
				284-23-455(2)(b),
				if the applicant furnishes the names of the existing insurers, and the
				requirements of WAC
				284-23-455(3),
				except that it need not maintain a replacement register.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › REPLACEMENT REGULATION › Section 284-23-480 - Penalties

Current through Register Vol. 24-14, July 15, 2024
(1) Any insurance
				producer, and any insurer, representative, officer or employee of such insurer
				failing to comply with the requirements of this regulation shall be subject to
				such penalties as may be appropriate under the insurance laws of
				Washington.
(2) This regulation
				does not prohibit the use of additional material other than that which is
				required that is not in violation of this regulation or any other Washington
				statute or regulation.
(3)
				Policyowners have the right to replace existing life insurance after indicating
				in or as part of the applications for life insurance that such is not their
				intention; however, patterns of such action by policyowners who purchase the
				replacing policies from the same insurance producer shall be deemed prima facie
				evidence of the licensee's knowledge that replacement was intended in
				connection with the sale of those policies, and such patterns of action shall
				be deemed prima facie evidence of the licensee's intent to violate this
				regulation.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.17.010(5).
					 11-01-159 (Matter No. R 2010-09), §
											284-23-480, filed 12/22/10,
					 effective 1/22/11. Statutory Authority:
					 RCW
					 48.02.060. 87-14-015 (Order R 87-6), §
											284-23-480, filed 6/23/87,
					 effective 9/1/87; 80-05-098 (Order R 80-5), §
											284-23-480, filed 5/2/80,
					 effective 10/1/80.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › MISCELLANEOUS RULES › Section 284-23-550 - Relationship of death benefits to premiums-Unfair practice defined

Current through Register Vol. 24-14, July 15, 2024
(1) It is an unfair
				practice for any insurer or fraternal benefit society to provide life insurance
				coverage on any person through a policy or certificate of coverage delivered on
				or after July 1, 1989, to or on behalf of such person in this state, unless the
				benefit payable at death under such policy or certificate will equal or exceed
				the cumulative premiums, as defined in subsection (4) of this section, paid for
				the policy or certificate, plus interest thereon at the rate of the monthly
				average of the five-year Constant Maturity Treasury rate reported by the
				Federal Reserve for the calendar month in which application for the policy is
				made compounded annually to the tenth anniversary of the effective date of
				coverage.
(2) This section applies
				to death benefits in relation to premiums, subject to the following provisions:
(a) When determining the relationship between
				benefits and premiums as set forth in subsection (1) of this section, neither
				premiums nor death benefits shall be adjusted for maturity benefits, surrender
				benefits, or policy loans.
(b)
				Annuity benefits, including annuity death benefits, and the premiums therefor
				shall be disregarded in applying this section.
(c) The following benefits, but not the
				premiums therefor, shall be disregarded in applying this section:
(i) Accidental death benefits;
(ii) Permanent disability benefits;
				and
(iii) Any benefit similar to
				(c)(i) or (ii) of this subsection.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › MISCELLANEOUS RULES › Section 284-23-570 - Deferred annuities with cash surrender benefits - Clarification

Current through Register Vol. 24-14, July 15, 2024
(1) For contracts
				which provide cash surrender benefits, the "maturity value of the paid-up
				annuity benefit," to which
				RCW
				 48.23.460 refers, shall be equal to the cash
				surrender value on the maturity date.
(2) On the maturity date, the cash surrender
				value shall be equal to the amount used to determine the annuity benefit
				payments. There are no surrender charges at maturity.
Statutory Authority:
					 RCW
					 48.02.060(3)(a). 91-22-012
					 (Order R 91-8), §
											284-23-570, filed 10/25/91,
					 effective 11/25/91.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › MISCELLANEOUS RULES › Section 284-23-580 - Insurer must obtain and keep evidence that insured is a key person - Definition of "key person."

Current through Register Vol. 24-14, July 15, 2024
(1) If a business entity seeks to be the owner and beneficiary of a contract of life insurance on an employee, the insurer must obtain and keep evidence that the business entity had an "insurable interest" in the life of the insured as required by RCW  48.18.030(3) and that the insured was a "key person" at the time the contract was made.
(2) An insurer issuing employer-owned key person life insurance to a business entity shall establish and apply appropriate underwriting guidelines to ensure that the employees or other persons on whose lives key person life insurance policies are written are actually key persons.
(3) An insurer issuing employer-owned life insurance policies or certificates must keep or require the employer to keep throughout the period of insurance, evidence that the insured has applied for or consented to the contract in writing. Consent requirements include, but are not limited to RCW  48.18.030, 48.18.060, and 48.18.580.
(4) If a contract of insurance is entered into pursuant to an exchange under Section  1035 of the Internal Revenue Code, an insurer is not required to obtain a new consent by the insured employee (as required at RCW  48.18.580(2)) only if the insurer to be replaced provides the replacing insurer with a copy of the original signed consent.
(5) The term "key person" means a person that, during the year the contract was made, was:
(a) A director;
(b) A shareholder who owns more than five percent in value of the stock of the employer; or
(c) A "highly compensated individual" or "highly compensated employee" within the meaning of Internal Revenue Code sections 414(q), 105(h) or 101(j), as applicable.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-600 - Title

Current through Register Vol. 24-14, July 15, 2024
This regulation, WAC
				  284-23-600 through
				  284-23-730, inclusive, may be
				  known and cited as "The Washington regulation on accelerated life insurance
				  benefits."
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-600, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-610 - Authority, finding, purpose, and scope

Current through Register Vol. 24-14, July 15, 2024
(1) The purpose of this regulation, WAC
				284-23-600 through
				284-23-730, is to define certain
				minimum standards for the regulation of accelerated benefit provisions of
				individual and group life insurance policies, a single violation of which will
				be deemed to constitute an unfair claims settlement practice. The commissioner
				finds and hereby defines it to be an unfair act or practice and an unfair
				method of competition for any insurer to provide accelerated benefits except as
				provided in this regulation.
(2)
				The commissioner finds that accelerated benefits in life insurance policies are
				primarily mortality risks rather than morbidity risks. The commissioner further
				finds that accelerated benefits are optional modes of settlement of proceeds
				under life insurance proceeds under
				RCW
				 48.11.020. No qualifying event as defined
				under WAC
				284-23-620(3)
				 changes the nature of the underlying life insurance policy. No accelerated
				benefits provision shall be called or marketed as long-term care as defined
				under RCW
				 48.83.020(5).
(3) This regulation applies to all
				accelerated benefit provisions of individual and group life insurance policies
				and riders which are issued or delivered to a resident of this state, on or
				after the effective date of this regulation. The regulation applies to both
				policies and riders. It also applies to solicitations for the sale of
				accelerated benefits, whether in the form of policies or riders.
(4) This regulation does not require
				inclusion or offering of any accelerated benefit in a life insurance policy.
				This regulation regulates those accelerated benefits which individual and group
				life insurers choose to advertise, offer, or market on or after the effective
				date of this regulation.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.83.070,
					 48.83.110,
					 48.83.120,
					 48.83.130(1), and
					 48.83.140(4)(a).
					 08-24-023 (Matter No. R 2008-19), §
											284-23-610, filed 11/24/08,
					 effective 12/25/08. Statutory Authority:
					 RCW
					  48.02.060,
					 48.30.010 and
					 48.11.020. 98-05-026 (Matter No. R
					 96-13), §
											284-23-610, filed 2/6/98,
					 effective 3/9/98. Statutory Authority:
					 RCW
					  48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-610, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-620 - Definitions

Current through Register Vol. 24-14, July 15, 2024
Unless the context clearly requires otherwise, the
				  definitions in this section apply throughout this regulation.
(1) "Accelerated benefits" means benefits
				payable under an individual or group life insurance policy. They are primarily
				mortality risks, rather than morbidity risks. Accelerated benefits may also
				mean optional modes of settlement of proceeds under life insurance policies.
				Accelerated benefits are benefits:
(a) Payable
				to either the policyholder of an individual life policy or to the certificate
				holder of a group life policy, during the lifetime of the insured, in
				anticipation of death, or upon the occurrence of certain specified
				life-threatening, terminal, or catastrophic conditions defined by the policy or
				rider as described in subsection (3) of this section; and
(b) Which reduce or eliminate the death
				benefit otherwise payable under the life insurance policy or rider;
				and
(c) Which are payable upon the
				occurrence of a single qualifying event which results in the payment of a
				benefit amount fixed at the time the accelerated benefit is paid.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-630 - Assignees and beneficiaries

Current through Register Vol. 24-14, July 15, 2024
Prior to the payment of any accelerated benefit, the insurer
				  shall obtain from any assignee or irrevocable beneficiary a signed consent to
				  the terms of the payout. If the insurer paying the accelerated benefit is
				  itself an assignee, its own written consent is not required.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-630, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-640 - Criteria for payment

Current through Register Vol. 24-14, July 15, 2024
(1)
				Payment options may include, the option of taking the benefit as a lump sum.
				The benefit shall not be made available as an annuity contingent upon the life
				of the insured.
(2) Except with the
				prior written approval of the commissioner no insurer may restrict the use of
				the proceeds from the payment of accelerated benefits.
(3) If any part of the death benefit remains
				after payment of an accelerated benefit, then any applicable accidental death
				benefit payable under the policy or rider shall not be affected by the payment
				of the accelerated benefit. The contract or rider shall include a statement
				that the insured's accidental death benefit will not be affected by the
				acceleration of benefits.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010 and
					 48.11.020. 98-05-026 (Matter No. R
					 96-13), §
											284-23-640, filed 2/6/98,
					 effective 3/9/98. Statutory Authority:
					 RCW
					  48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-640, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-660 - Effective date of the accelerated benefit

Current through Register Vol. 24-14, July 15, 2024
The accelerated benefit provision shall be effective for a
				  qualifying event caused by an accident on the effective date of the policy or
				  rider. The accelerated benefit provision shall be effective for illness no more
				  than thirty days following the effective date of the policy or
				  rider.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.30.010 and
					 48.11.020. 98-05-026 (Matter No. R
					 96-13), §
											284-23-660, filed 2/6/98,
					 effective 3/9/98. Statutory Authority:
					 RCW
					  48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-660, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-670 - Waiver of premiums

Current through Register Vol. 24-14, July 15, 2024
The insurer may offer a waiver of premium for the accelerated
				  benefit provision, even in the absence of a policy waiver of premium provision
				  being in effect. At the time payment of the accelerated benefit is requested,
				  the insurer shall explain to the owner of an individual policy, or the
				  certificate holder of a group policy, any continuing premium requirement
				  necessary to keep the policy in force.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-670, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-680 - Unfair discrimination

Current through Register Vol. 24-14, July 15, 2024
An insurer shall not unfairly discriminate between insureds
				  with different qualifying events covered under the policy or rider. An insurer
				  may not unfairly discriminate between insureds with similar or identical
				  qualifying events covered under the policy or rider. Insurers may not apply
				  conditions on the payment of the accelerated benefits except those specified in
				  the insured's policy or rider.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.30.010. 94-18-029 (Order R
					 94-18), §
											284-23-680, filed 8/29/94,
					 effective 9/29/94.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-23 - Washington life insurance regulations › ACCELERATED LIFE INSURANCE BENEFITS › Section 284-23-690 - Actuarial standards, financing options, effect on cash value, and effect on policy loans

Current through Register Vol. 24-14, July 15, 2024
(1) An insurer
				shall select among the following finance options. Under subsection (1)(a) and
				(1)(b) of this section, the accelerated death benefit is regarded as completely
				settled. Premiums, if any, payable for the remaining coverage shall be reduced
				proportionally.
(a) An insurer may require a
				premium charge or cost of insurance charge for the accelerated benefit. These
				charges shall be based on sound actuarial principles. No additional charges may
				be imposed to collect benefits.
(b)
				An insurer may pay the present value of the face amount of the insured's policy
				or certificate. The calculation of that present value shall be based upon any
				applicable discount appropriate to the policy design. The interest rate or
				interest rate methodology used in the calculation shall be based upon sound
				actuarial principles and disclosed in the policy or actuarial memorandum. The
				maximum interest rate used shall be no more than the greater of:
(i) The current yield on ninety day treasury
				bills; or
(ii) The current maximum
				statutory adjustable policy loan interest rate.
(c) An insurer may accrue an interest charge
				on the amount of the accelerated benefits. The interest rate or the interest
				rate methodology used in the calculation shall be based upon sound actuarial
				principles and shall be disclosed in the policy or the actuarial memorandum.
				The maximum interest rate used shall be no more than the greater of:
(i) The current yield on ninety day treasury
				bills; or
(ii) The current maximum
				statutory adjustable policy loan interest rate.
The interest rate accrued on the portion of the lien which is
				  equal in amount to the cash value of the policy at the time the benefit is
				  accelerated shall be no more than the loan interest rate stated in the
				  policy.
(d) Any
				other financing option that the commissioner is satisfied is not contrary to
				the best interests of the public. No financing option shall be offered by any
				insurer without the prior written approval of the commissioner.