reglab/statecodes huggingface dataset:
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1.
a. Advertisement means material designed to create
				public interest in life insurance or annuities or in an insurer, or in an insurance
				producer; or to induce the public to purchase, increase, modify, reinstate, borrow
				on, surrender, replace or retain a policy including:
1. Printed and published material, audio-visual
				material and descriptive literature of an insurer or insurance producer used in
				direct mail, newspapers, magazines, radio and television scripts, billboard and
				similar displays, and the Internet or any other mass communication media;
2. Descriptive literature and sales aids of all
				kinds authored by the insurer, its insurance producers, or third parties, issued,
				distributed or used by the insurer or insurance producer, including, but not limited
				to, circulars, leaflets, booklets, web pages, depictions, illustrations and form
				letters;
3. Material used for
				recruiting, training and educating an insurer's insurance producers which is used to
				induce the public to purchase, increase, modify, reinstate, borrow on, surrender,
				replace or retain a policy; and
4.
				Prepared sales talks, presentations and material for use by insurance
				producers.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-4 - Form and Contents of Advertisements

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Advertisements shall be truthful and not
				misleading in fact or by implication. The form and content of an advertisement of a
				policy must be sufficiently complete and clear so as to avoid deception. The
				Insurance Commissioner shall determine whether an advertisement has the capacity or
				tendency to mislead or deceive from the overall impression that the advertisement
				may be reasonably expected to create upon a person of average education or
				intelligence within the segment of the public to which it is directed.
4.2. No advertisement shall use the terms
				"investment," "investment plan," "founder's plan," "charter plan," "deposit,"
				"expansion plan," "profit," "profits," "profit sharing," "interest plan," "savings,"
				"savings plan," "private pension plan," "retirement plan" or other similar terms in
				connection with a policy in a context or under such circumstances or conditions as
				to have the capacity or tendency to mislead a purchaser or prospective purchaser of
				such policy to believe that he or she will receive, or that it is possible that he
				or she will receive, something other than a policy or some benefit not available to
				other persons of the same class and equal expectation of life.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-6 - Identity of Insurer

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. The name of the
				insurer shall be clearly identified in all advertisements about the insurer or its
				products, and if any specific individual policy is advertised it shall be identified
				either by form number or other appropriate description. If an application is a part
				of the advertisement, the name of the insurer shall be shown on the application.
				However, if an advertisement contains a listing of rates or features that is a
				composite of several different policies or contracts of different insurers, the
				advertisement shall so state, shall indicate, if applicable, that not all policies
				or contracts on which the composite is based may be available in all states, and
				shall provide a rating of the lowest rated insurer and reference the rating agency,
				but need not identify each insurer. If an advertisement identifies the issuing
				insurers, insurance issuer ratings need not be stated.
6.2. An advertisement may not use a trade name, an
				insurance group designation, name of the parent company of the insurer, name of a
				particular division of the insurer, a reinsurer of the insurer, service mark,
				slogan, symbol or other device or reference without disclosing the name of the
				insurer, if the advertisement would have the capacity or tendency to mislead or
				deceive as to the true identity of the insurer or create the impression that a
				company other than the insurer would have any responsibility for the financial
				obligation under a policy.
6.3. An
				advertisement may not use any combination of words, symbols or physical materials
				that by their content, phraseology, shape, color or other characteristics are so
				similar to a combination of words, symbols or physical materials used by a
				governmental program or agency or otherwise appear to be of such a nature that they
				tend to mislead prospective insureds into believing that the solicitation is in some
				manner connected with a governmental program or agency.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-7 - Jurisdictional Licensing and Status of Insurer

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. An advertisement that is intended to be seen
				or heard beyond the limits of the jurisdiction in which the insurer is licensed may
				not imply licensing beyond those limits.
7.2. An advertisement may state that an insurer or
				insurance producer is licensed in a particular state or states, provided it does not
				exaggerate that fact or suggest or imply that competing insurers or insurance
				producers may not be so licensed.
7.3.
				An advertisement may not create the impression that the insurer, its financial
				condition or status, the payment of its claims or the merits, desirability, or
				advisability of its policy forms or kinds of plans of insurance are recommended or
				endorsed by any governmental entity. However, where a governmental entity has
				recommended or endorsed a policy form or plan, that fact may be stated if the entity
				authorizes its recommendation or endorsement to be used in an
				advertisement.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-8 - Statements About the Insurer

Current through Register Vol. XLI, No. 28, July 12, 2024
An advertisement may not contain statements, pictures or
				  illustrations which are false or misleading, in fact or by implication, with respect
				  to the assets, liabilities, insurance in force, corporate structure, financial
				  condition, age or relative position of the insurer in the insurance business. An
				  advertisement may not contain a recommendation by any commercial rating system
				  unless it clearly defines the scope and extent of the recommendation, including, but
				  not limited to, the placement of insurer's rating in the hierarchy of the rating
				  system cited.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-9 - Enforcement Procedures

Current through Register Vol. XLI, No. 28, July 12, 2024
9.1. Each insurer
				shall maintain at its home or principal office a complete file containing a specimen
				copy of every printed, published or prepared advertisement of its individual
				policies and specimen copies of typical printed, published or prepared
				advertisements of its blanket, franchise and group policies, hereafter disseminated
				in this state, with a notation indicating the manner and extent of distribution and
				the form number of any policy advertised. The file shall be subject to inspection by
				the department. All advertisements shall be maintained in the file for a period of
				five (5) years after discontinuance of its use or publication.
9.2. If the Insurance Commissioner determines that
				an advertisement has the capacity or tendency to mislead or deceive the public, the
				commissioner may require an insurer or insurance producer to submit all or any part
				of the advertising material for review or approval prior to use.
9.3. Each insurer subject to the provisions of
				these rules shall file with the Insurance Commissioner with its annual statement a
				certificate of compliance executed by an authorized officer of the insurer stating
				that to the best of his or her knowledge, information and belief the advertisements
				which were disseminated by or on behalf of the insurer in this state during the
				preceding statement year, or during the portion of the year when these rules were in
				effect, complied or were made to comply in all respects with the provisions of these
				rules and the insurance laws of this state as implemented and interpreted by this
				rule.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-10 - Conflict With Other Laws or Regulations

Current through Register Vol. XLI, No. 28, July 12, 2024
This rule is not intended to conflict with or supersede any rule
				  currently in force in this state governing specific aspects of the sale or
				  replacement of life insurance including, but not limited to, laws or rules dealing
				  with life insurance cost comparison indices, deceptive practices in the sale of life
				  insurance, replacement of life insurance policies, illustration of life insurance
				  policies, and annuity disclosure. No disclosure pursuant to or required under those
				  rules shall be deemed to be an advertisement within the meaning of this
				  rule.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11 - Advertisement Of Life Insurance And Annuities › Section 114-11-11 - Violations

Current through Register Vol. XLI, No. 28, July 12, 2024
Any insurer failing to comply with the requirements of this rule
				  shall be subject to the penalties prescribed in W. Va. Code §
									33-3-11.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11A - Life Insurance Disclosures › Section 114-11A-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. The purpose of this
				rule is to require insurers to deliver to purchasers of life insurance information
				that will improve the buyer's ability to select the most appropriate plan of life
				insurance for the buyer's needs and improve the buyer's understanding of the basic
				features of the policy which has been purchased or is under consideration. This rule
				is based on the National Association of Insurance Commissioners' "Life Insurance
				Disclosure Model Regulation" (Model 580), as amended in 2000.
1.2. This rule does not prohibit the use of
				additional material that is not a violation of this rule or any other West Virginia
				statute or rule.
1.3. Authority. -- W.
				Va. Code §§
									33-2-10 and
				33-11-6.
1.4. Filing Date. -- May 5, 2008.
1.5. Effective Date. -- August 1, 2008.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11A - Life Insurance Disclosures › Section 114-11A-2 - Scope

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1. Except for the
				exemptions specified in subsection 2.2 of this section, this rule applies to any
				solicitation, negotiation or procurement of life insurance occurring within this
				state. Subsection 4.2 of this rule applies only to an existing nonexempt policy held
				by a policyowner residing in this state. This rule applies to any issuer of life
				insurance contracts, including fraternal benefit societies.
2.2. This rule does not apply to:
a. Individual and group annuity
				contracts;
b. Credit life
				insurance;
c. Group life
				insurance;
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), 29
				U.S.C. Section 1001 et seq. as amended; or
e. Variable life insurance under which the amount
				or duration of the life insurance varies according to the investment experience of a
				separate account.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11A - Life Insurance Disclosures › Section 114-11A-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
For the purposes of this rule, the following definitions shall
				  apply:
3.1. "Buyer's Guide" means the Life
				Insurance Buyer's Guide adopted by the National Association of Insurance
				Commissioners (NAIC) or language approved by the West Virginia Insurance
				Commissioner and appended to this rule as Appendix A.
3.2. "Current scale of nonguaranteed elements"
				means a formula or other mechanism that produces values for an illustration as if
				there is no change in the basis of those values after the time of
				illustration.
3.3. "Generic name" means
				a short title that is descriptive of the premium and benefit patterns of a policy or
				a rider.
3.4. "Illustration" means a
				presentation or depiction that includes non-guaranteed elements of a policy of life
				insurance over a period of years and that is one of the three (3) types defined
				below:
a. "Basic illustration" means a ledger or
				proposal used in the sale of a life insurance policy that shows both guaranteed and
				non-guaranteed elements.
b.
				"Supplemental illustration" means an illustration furnished in addition to a basic
				illustration that meets the applicable requirements of this rule, and that may be
				presented in a format differing from the basic illustration, but may only depict a
				scale of non-guaranteed elements that is permitted in a basic
				illustration.
c. "In force illustration"
				means an illustration furnished at any time after the policy that it depicts has
				been in force for one year or more.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11A - Life Insurance Disclosures › Section 114-11A-4 - Duties of Insurers

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Requirements
				Applicable Generally
a. The insurer shall provide
				a Buyer's Guide to all prospective purchasers prior to accepting the applicant's
				initial premium or premium deposit. However, if the policy for which application is
				made contains an unconditional refund provision of at least ten (10) calendar days,
				the Buyer's Guide may be delivered with the policy or prior to delivery of the
				policy.
b. The insurer shall provide a
				policy summary to prospective purchasers where the insurer has identified the policy
				form as one that will not be marketed with an illustration. The policy summary shall
				show guarantees only and must consist of a separate document with all required
				information set out in a manner that does not minimize or render any portion of the
				summary obscure. Any amounts that remain level for two (2) or more years of the
				policy may be represented by a single number if it clearly indicates what amounts
				are applicable for each policy year. Amounts in paragraphs 1 through 5, subdivision
				e. subsection 3.7 shall be listed in total, not on a per thousand or per unit basis.
				If more than one insured is covered under one policy or rider and if death benefits
				do not differ within the class, death benefits shall be displayed separately for
				each insured or for each class of insureds. Zero amounts shall be displayed as a
				blank space. Delivery of the policy summary shall be consistent with the time for
				delivery of the Buyer's Guide as specified in subdivision a of this
				subsection.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11A - Life Insurance Disclosures › Section 114-11A-5 - General Rules

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. Each insurer must
				maintain, at its home office or principal office, one copy of each document
				authorized and used by the insurer pursuant to this rule. Unless otherwise provided
				by this rule, each such copy must be maintained for a period of three (3) years
				after the date of its last authorized use.
5.2. An insurance producer must inform a
				prospective purchaser, prior to commencing a life insurance sales presentation, that
				he or she is acting as a life insurance producer and of the full name of the
				insurance company which the individual insurance producer is representing. In sales
				situations in which an insurance producer is not involved, the insurer shall
				identify its full name.
5.3. No
				insurance producer may use terms such as "financial planner," "investment adviser,"
				"financial consultant" or "financial counseling" to imply that he or she is
				generally engaged in an advisory business in which compensation is unrelated to
				sales unless that actually is the case. This provision does not preclude persons who
				hold some form of formal recognized financial planning or consultant designation
				from using this designation even when they are only selling insurance. This
				provision also does not preclude an insurance producer from citing his or her
				membership in a recognized trade or professional association having such terms as
				part of its name, as long as the fact that the producer is authorized only to sell
				insurance products is disclosed. This provision does not permit persons to charge an
				additional fee for services that are customarily associated with the solicitation,
				negotiation or servicing of policies.
5.4. Any reference to nonguaranteed elements shall
				include a statement that the item is not guaranteed and is based on the company's
				current scale of nonguaranteed elements (use appropriate special term such as
				"current dividend" or "current rate" scale). If a nonguaranteed element would be
				reduced by the existence of a policy loan, a statement to that effect must be
				included in any reference to nonguaranteed elements. A presentation or depiction of
				a policy that includes nonguaranteed elements over a period of years is governed by
				114 CSR 11C.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11A - Life Insurance Disclosures › Section 114-11A-6 - Failure to Comply

Current through Register Vol. XLI, No. 28, July 12, 2024
An insurer who fails to provide or deliver a Buyer's Guide, an in
				  force illustration, a policy summary or policy data as required by section 4 of this
				  rule is guilty of an omission that misrepresents the benefits, advantages,
				  conditions or terms of an insurance policy.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Purpose. -- The
				purpose of this rule is to require producers, as defined in this rule, to act in the
				best interest of the consumer when making a recommendation of an annuity and to
				require insurers to establish and maintain a system to supervise recommendations so
				that the insurance needs and financial objectives of consumers at the time of the
				transaction are effectively addressed. This rule is based on the National
				Association of Insurance Commissioners' "Suitability in Annuity Transactions Model
				Regulation" (Model 275), as amended in the 1st quarter of
				2020.
1.2. Authority. -- W. Va. Code
				§§
									33-2-10 and
				33-11-6.
1.3. Filing Date. -- March 29, 2023.
1.4. Effective Date. -- June 8, 2023.
1.5. Sunset Provision. -- This rule shall
				terminate and have no further force or effect on August 1, 2028.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-3 - Exemptions

Current through Register Vol. XLI, No. 28, July 12, 2024
Unless otherwise specifically included, this rule does not apply
				  to transactions involving:
3.1. Direct
				response solicitations where there is no recommendation based on information
				collected from the consumer pursuant to this rule;
3.2. Contracts used to fund:
3.2.1. An employee pension or welfare benefit plan
				that is covered by the Employee Retirement and Income Security Act (ERISA),
				29 U.S.C. Section
				1001
et seq.
as
				amended;
3.2.2. A plan described by
				Sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code
				(IRC), as amended, if established or maintained by an employer;
3.2.3. A government or church plan defined in
				Section 414 of the IRC, a government or church welfare benefit plan, or a deferred
				compensation plan of a state or local government or tax exempt organization under
				Section 457 of the IRC; or
3.2.4. A
				nonqualified deferred compensation arrangement established or maintained by an
				employer or plan sponsor;
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-4 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. "Annuity" means an
				annuity that is an insurance product under state law which is individually
				solicited, whether the product is classified as an individual or group
				annuity.
4.2. "Cash compensation" means
				any discount, concession, fee, service fee, commission, sales charge, loan, override
				or cash benefit received by a producer in connection with the recommendation or sale
				of an annuity from an insurer, intermediary or directly from the consumer.
4.3. "Commissioner" means the Insurance
				Commissioner of West Virginia.
4.4.
				"Consumer profile information" means information that is reasonably appropriate to
				determine whether a recommendation addresses the consumer's financial situation,
				insurance needs and financial objectives, including, at a minimum, the following:
4.4.1. Age;
4.4.2. Annual income;
4.4.3. Financial situation and needs, including
				debts and other obligations;
4.4.4.
				Financial experience;
4.4.5. Insurance
				needs;
4.4.6. Financial
				objectives;
4.4.7. Intended use of the
				annuity;
4.4.8. Financial time
				horizon;
4.4.9. Existing assets or
				financial products, including investment, annuity and insurance holdings;
4.4.10. Liquidity needs;
4.4.11. Liquid net worth;
4.4.12. Risk tolerance including, but not limited
				to, willingness to accept non-guaranteed elements in the annuity;
4.4.13. Financial resources used to fund the
				annuity; and
4.4.14. Tax
				status.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-5 - Duties of Insurers and Producers

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. Best Interest
				Obligations. A producer, when making a recommendation of an annuity, shall act in
				the best interest of the consumer under the circumstances known at the time the
				recommendation is made, without placing the producer's or the insurer's financial
				interest ahead of the consumer's interest. A producer has acted in the best interest
				of the consumer if they have satisfied the following obligations regarding care,
				disclosure, conflict of interest and documentation:
5.1.1. Care obligation.
5.1.1.a. The producer, in making a recommendation,
				shall exercise reasonable diligence, care and skill to:
5.1.1.a.1. Know the consumer's financial
				situation, insurance needs and financial objectives;
5.1.1.a.2. Understand the available recommendation
				options after making a reasonable inquiry into options available to the
				producer;
5.1.1.a.3. Have a reasonable
				basis to believe the recommended option effectively addresses the consumer's
				financial situation, insurance needs and financial objectives over the life of the
				product, as evaluated in light of the consumer profile information; and
5.1.1.a.4. Communicate the basis or bases of the
				recommendation.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-7 - Compliance Mitigation; Penalties; Enforcement

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. An insurer is
				responsible for compliance with this rule. If a violation occurs, either because of
				the action or inaction of the insurer or its producer, the Commissioner may order:
7.1.1. An insurer to take reasonably appropriate
				corrective action for any consumer harmed by a failure to comply with this rule by
				the insurer, an entity contracted to perform the insurer's supervisory duties or the
				producer;
7.1.2. A general agency,
				independent agency or the producer to take reasonably appropriate corrective action
				for any consumer harmed by the producer's violation of this rule; and
7.1.3. Appropriate penalties and sanctions under
				Chapter 33 of the West Virginia Code or legislative rules promulgated pursuant to
				said Chapter.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Section 114-11B-8 - Recordkeeping

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1. Insurers, insurance
				agencies and producers shall maintain or be able to make available to the
				Commissioner records of the information collected from the consumer, disclosures
				made to the consumer, including summaries of oral disclosures, and other information
				used in making the recommendations that were the basis for insurance transactions
				for ten years after the transaction was completed.
8.2. An insurer is permitted, but is not required,
				to maintain documentation on behalf of a producer.
8.3. Records required to be maintained by this
				rule may be maintained in paper, photographic, microprocess, magnetic, mechanical or
				electronic media or by any process that accurately reproduces the actual
				document.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Appendix B - Consumer Refusal to Provide Information

Current through Register Vol. XLI, No. 28, July 12, 2024
Do Not Sign Unless You Have Read and Understand the
				  Information in this Form
Why are You being given this form?
You're buying a financial product - an annuity.
To recommend a product that effectively meets Your needs,
				  objectives and situation, the agent or company needs information about You, Your
				  financial situation, insurance needs and financial objectives.
If You sign this form, it means You have not given the agent or
				  company some or all the information needed to decide if the annuity effectively
				  meets Your needs, objectives and situation. You may lose protections under the
				  Insurance Code of West Virginia and applicable rules if You sign this form or
				  provide inaccurate information.
Statement of Purchaser:
[] I
REFUSE
to provide this information at this
				  time.
[] I have chosen to provide LIMITED information at this
				  time.
_____________________________________________
Customer Signature
_____________________________________________
Date
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11B - Suitability In Annuity Transactions › Appendix C - Consumer Decision to Purchase an Annuity Not Based on a Recommendation

Current through Register Vol. XLI, No. 28, July 12, 2024
Do Not Sign This Form Unless You Have Read and Understand
				  It
Why are You being given this form?
You are buying a
				  financial product - an annuity.
To recommend a product that effectively meets Your needs,
				  objectives and situation, the agent or company has the responsibility to learn about
				  You, Your financial situation, insurance needs and financial objectives.
If You sign this form, it means You know that You're buying an
				  annuity that was not recommended.
Statement of Purchaser:
I understand that I am buying an annuity, but the agent or company
				  did not recommend that I buy it. If I buy it
without a recommendation
,
				  I understand I may lose protections under the Insurance Code of West Virginia and
				  applicable rules.
_____________________________________________
Customer Signature
_____________________________________________
Date
_____________________________________________
Agent (Producer) Signature
________________________________________
Date
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- The
				purpose of this rule is to provide standards for life insurance policy illustrations
				that will protect consumers and foster consumer education. The rule provides
				illustration formats, prescribes standards to be followed when illustrations are
				used, and specifies the disclosures that are required in connection with
				illustrations. The goals of this rule are to ensure that illustrations do not
				mislead purchasers of life insurance and to make illustrations more understandable.
				Insurers will, as far as possible, eliminate the use of footnotes and caveats and
				define terms used in the illustration in language that would be understood by a
				typical person within the segment of the public to which the illustration is
				directed. This rule is based on the National Association of Insurance Commissioners'
				"Life Insurance Illustrations Model Regulation" (Model 582), as amended in
				2000.
1.2. Authority. -- W. Va. Code
				§§
									33-2-10 and
				33-11-6.
1.3. Filing Date. -- May 5, 2008.
1.4. Effective Date. -- August 1, 2008.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-2 - Applicability and Scope

Current through Register Vol. XLI, No. 28, July 12, 2024
This rule applies to all group and individual life insurance
				  policies and certificates except:
2.1.
				Variable life insurance;
2.2. Individual
				and group annuity contracts;
2.3. Credit
				life insurance; or
2.4. Life insurance
				policies with no illustrated death benefits on any individual exceeding ten thousand
				dollars ($10,000).
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
For the purposes of this rule:
3.1. "Actuarial Standards Board" means the board
				established by the American Academy of Actuaries to develop and promulgate standards
				of actuarial practice.
3.2. "Contract
				premium" means the gross premium that is required to be paid under a fixed premium
				policy, including the premium for a rider for which benefits are shown in the
				illustration.
3.3. "Currently payable
				scale" means a scale of non-guaranteed elements in effect for a policy form as of
				the preparation date of the illustration or declared to become effective within the
				next ninety-five (95) days.
3.4.
				"Disciplined current scale" means a scale of non-guaranteed elements limiting
				current illustrations that is reasonably based on actual recent historical
				experience, as certified annually by an illustration actuary designated by the
				insurer. Further guidance in determining the disciplined current scale as contained
				in standards established by the Actuarial Standards Board may be relied upon if the
				Board's standards:
a. Are consistent with all
				provisions of this rule;
b. Limit a
				disciplined current scale to reflect only actions that have already been taken or
				events that have already occurred;
c. Do
				not permit a disciplined current scale to include any projected trends of
				improvements in experience or any assumed improvements in experience beyond the
				illustration date; and
d. Do not permit
				assumed expenses to be less than minimum assumed expenses.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-4 - Policies to Be Illustrated

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. Each
				insurer marketing policies to which this rule applies shall notify the Insurance
				Commissioner whether a policy form is to be marketed with or without an
				illustration. The insurer shall identify in writing all policy forms being actively
				marketed on the effective date of this rule, and whether an illustration will be
				used with them. The identification of policy forms filed after the effective date of
				this rule shall be made at the time of filing. An insurer may change any previous
				identification by notice to the Insurance Commissioner.
4.2. The insurer may not use an illustration for
				any policy form identified as one to be marketed without an illustration prior to
				the first policy anniversary.
4.3. The
				insurer shall prepare and deliver to the Insurance Commissioner a basic illustration
				in accordance with this rule for each policy form identified by the insurer as one
				to be marketed with an illustration, except that a basic illustration need not be
				provided to individual members of a group or to individuals insured under multiple
				lives coverage issued to a single applicant unless the coverage is marketed to these
				individuals. The illustration furnished an applicant for a group life insurance
				policy or policies issued to a single applicant on multiple lives may be either an
				individual or composite illustration representative of the coverage on the lives of
				members of the group or the multiple lives covered.
4.4. The insurer shall furnish potential enrollees
				of non-term group life subject to this rule with a quotation with the enrollment
				materials. The quotation shall show potential policy values for sample ages and
				policy years on a guaranteed and non-guaranteed basis appropriate to the group and
				the coverage. This quotation is not an illustration for purposes of this rule, but
				all information provided must be consistent with the illustrated scale. The insurer
				shall provide a basic illustration at delivery of the certificate to enrollees for
				non-term group life who enroll for more than the minimum premium necessary to
				provide pure death benefit protection. In addition, the insurer shall make a basic
				illustration available to any non-term group life enrollee who requests
				it.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-5 - General Rules and Prohibitions

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1. An
				illustration used in the sale of a life insurance policy shall satisfy the
				requirements of this rule, be clearly labeled "life insurance illustration" and
				contain the following basic information:
a. Name of
				insurer;
b. Name and business address of
				producer or insurer's authorized representative, if any;
c. Name, age and sex of proposed insured, except
				where a composite illustration is permitted under subsection 4.3 of this
				rule;
d. Underwriting or rating
				classification upon which the illustration is based;
e. Generic name of policy, the company product
				name, if different, and form number;
f.
				Initial death benefit; and
g. Dividend
				option election or application of non-guaranteed elements, if applicable.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-7 - Standards for Supplemental Illustrations

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. A supplemental illustration may be provided
				so long as:
a. It is appended to, accompanied by
				or preceded by a basic illustration that complies with this rule;
b. The non-guaranteed elements shown are not more
				favorable to the policy owner than the corresponding elements based on the scale
				used in the basic illustration;
c. It
				contains the same statement required of a basic illustration that non-guaranteed
				elements are not guaranteed; and
d. The
				contract premium, if any, underlying the supplemental illustration is equal to the
				contract premium shown in the basic illustration. For policies that do not require a
				contract premium, the premium outlay underlying the supplemental illustration shall
				be equal to the premium outlay shown in the basic illustration.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-8 - Delivery of Illustration and Record Retention

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1.
a. If a
				basic illustration is used by an insurance producer or other authorized
				representative of the insurer in the sale of a life insurance policy and the policy
				is applied for as illustrated, a copy of that illustration, signed in accordance
				with this rule, shall be submitted by the producer to the insurer at the time of
				policy application. A copy also shall be provided to the applicant.
b. If the policy is issued other than as applied
				for, a revised basic illustration conforming to the policy as issued shall be sent
				with the policy. The revised illustration shall conform to the requirements of this
				rule, shall be labeled "Revised Illustration" and shall be signed and dated by the
				applicant or policy owner and producer or other authorized representative of the
				insurer no later than the time the policy is delivered. A copy shall be provided to
				the insurer and the policy owner.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-9 - Annual Report; Notice to Policy Owners

Current through Register Vol. XLI, No. 28, July 12, 2024
9.1.
				In the case of a policy designated as one for which illustrations will be used, the
				insurer shall provide each policy owner with an annual report on the status of the
				policy containing at least the following information:
a. For universal life policies:
1. The beginning and end date of the current
				report period;
2. The policy value at
				the end of the previous report period and at the end of the current report
				period;
3. The total amounts that have
				been credited or debited to the policy value during the current report period,
				identifying each by type (
e.g.
, interest, mortality, expense and
				riders);
4. The current death benefit at
				the end of the current report period on each life covered by the policy;
5. The net cash surrender value of the policy at
				the end of the current report period;
6.
				The amount of outstanding loans, if any, at the end of the current report period;
				and
A. If applicable, a notice for fixed premium
				policies assuming guaranteed interest, mortality and expense loads and continued
				scheduled premium payments, the policy's net cash surrender value is such that it
				would not maintain insurance in force until the end of the next reporting period;
				or
B. If applicable, a notice for
				flexible premium policies assuming guaranteed interest, mortality and expense loads,
				that the policy's net cash surrender value will not maintain insurance in force
				until the end of the next reporting period unless further premium payments are
				made.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-10 - Annual Certifications

Current through Register Vol. XLI, No. 28, July 12, 2024
10.1. The
				board of directors of each insurer shall appoint one or more illustration
				actuaries.
10.2. The illustration
				actuary shall certify that the disciplined current scale used in illustrations is in
				conformity with the Actuarial Standard of Practice for Compliance with the NAIC
				Model Regulation on Life Insurance Illustrations promulgated by the Actuarial
				Standards Board, and that the illustrated scales used in insurer-authorized
				illustrations meet the requirements of this rule.
10.3. The illustration actuary shall:
a. Be a member in good standing of the American
				Academy of Actuaries;
b. Be familiar
				with the standard of practice regarding life insurance policy
				illustrations;
c. Not have been found by
				the Insurance Commissioner, following appropriate notice and hearing to have:
1. Violated any provision of, or any obligation
				imposed by, the insurance law or other law in the course of his or her dealings as
				an illustration actuary;
2. Been
				convicted of an offense involving fraudulent or dishonest practices;
3. Demonstrated his or her incompetence, lack of
				cooperation, or untrustworthiness to act as an illustration actuary; or
4. Resigned or been removed as an illustration
				actuary within the past five (5) years as a result of acts or omissions indicated in
				any adverse report on examination or as a result of a failure to adhere to generally
				acceptable actuarial standards;
d. Not fail to notify the Insurance Commissioner
				of any action taken by a commissioner of another state similar to that under
				Paragraph 3 above;
e. Disclose in the
				annual certification whether, since the last certification, a currently payable
				scale applicable for business issued within the previous five (5) years and within
				the scope of the certification has been reduced for reasons other than changes in
				the experience factors underlying the disciplined current scale. If nonguaranteed
				elements illustrated for new policies are not consistent with those illustrated for
				similar in force policies, this must be disclosed in the annual certification. If
				nonguaranteed elements illustrated for both new and in force policies are not
				consistent with the nonguaranteed elements actually being paid, charged or credited
				to the same or similar forms, this must be disclosed in the annual certification;
				and
f. Disclose in the annual
				certification the method used to allocate overhead expenses for all illustrations:
1. Fully allocated expenses;
2. Marginal expenses; or
3. A generally recognized expense table based on
				fully allocated expenses representing a significant portion of insurance companies
				and approved by the Insurance Commissioner.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-11 - Failure to comply

Current through Register Vol. XLI, No. 28, July 12, 2024
A violation of paragraphs 5.2 or 5.3, section 5 of this rule by an
				  insurer constitutes a statement or omission which misrepresents the benefits,
				  advantages, conditions or terms of a life insurance policy.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11D - Variable Life Insurance › Section 114-11D-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- The
				purpose of this rule is to ensure that a policyholder is provided with a thorough
				disclosure concerning the operation of his or her variable life insurance policy and
				with current, reliable information concerning the status of his or her variable life
				insurance coverage. This rule is based on the National Association of Insurance
				Commissioner's "Variable Life Insurance Model Regulation," (Model 270), as amended
				in 1983.
1.2. Authority. -- W. Va. Code
				§§
									33-2-10 and
				33-13A-4.
1.3. Filing Date. -- April 14, 2010.
1.4. Effective Date. -- July 16, 2010.
West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11D - Variable Life Insurance › Section 114-11D-3 - Qualification of Insurer to Issue Variable Life Insurance

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. The requirements of this section are
				applicable to all insurers either seeking authority to issue variable life insurance
				in this state or having authority to issue variable life insurance in this
				state.
3.2. Licensing and Approval to do
				Business in This State. An insurer may not deliver or issue for delivery in this
				state any variable life insurance policies unless:
3.2.a. The insurer is licensed or organized to do
				a life insurance business in this state;
3.2.b. The insurer has obtained the written
				approval of the Commissioner for the issuance of variable life insurance policies in
				this state. The Commissioner shall grant written approval only after the
				Commissioner has found that:
3.2.b.1. The plan of
				operation for the issuance of variable life insurance policies is sound;
3.2.b.2. The general character, reputation and
				experience of the management and those persons or firms proposed to supply
				consulting, investment, administrative or custodial services to the insurer are such
				as to reasonably assure competent operation of the variable life insurance business
				of the insurer in this state; and
3.2.b.3. The present and foreseeable future
				financial condition of the insurer and its method of operation in connection with
				the issuance of such policies is not likely to render its operation hazardous to the
				public or its policyholders in this state. The Commissioner shall consider, among
				other things:
3.2.b.3.A. The history of operation
				and financial condition of the insurer;
3.2.b.3.B. The qualifications, fitness, character,
				responsibility, reputation and experience of the officers and directors and other
				management of the insurer and those persons or firms proposed to supply consulting,
				investment, administrative or custodial services to the insurer;
3.2.b.3.C. The applicable law and regulations
				under which the insurer is authorized in its state of domicile to issue variable
				life insurance policies. The state of entry of an alien insurer shall be deemed its
				state of domicile for this purpose; and
3.2.b.3.D. If the insurer is a subsidiary of, or
				is affiliated by common management or ownership with another company, its
				relationship to such other company and the degree to which the requesting insurer,
				as well as the other company, meets these standards.