Current through September 9, 2024
The following requirements 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.
(a)
Licensing and approval to do
business in this state: An insurer shall not deliver or issue for
delivery in this state any variable life insurance policy unless:
(1) the insurer is licensed or organized to
do a life insurance business in this state;
(2) the insurer has obtained a license from
the Commissioner for the issuance of variable life insurance policies in this
state. The Commissioner shall grant such license only after he has found that:
(A) the plan of operation for the issuance of
variable life insurance policies is not unsound;
(B) 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
(C) 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:
(i) the
history of operation and financial condition of the insurer;
(ii) 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;
(iii) 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
(iv) 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, meet these standards.
(b)
Filing for approval to do business in this state: The commissioner
may, at his discretion, require that an insurer, before it delivers or issues
for delivery any variable life insurance policy in this state, file with this
Department the following information for the consideration of the Commissioner
in making the determination required by Section
38a-433-3(a)
(2):
(1) copies of and a general description
of the variable life insurance policies it intends to issue;
(2) a general description of the methods of
operation of the variable life insurance business of the insurer, including
methods of distribution of policies and the names of those persons or firms
proposed to supply consulting, investment, administrative, custodial or
distribution services to the insurer;
(3) with respect to any separate account
maintained by an insurer for any variable life insurance policy, a statement of
the investment policy the insurer intends to follow for the investment of the
assets held in such separate account. The statement shall include a description
of the investment objective intended for the separate account;
(4) a description of any investment advisory
services contemplated as required by Subsection (j) of Sec.
38a-433-6;
(5) a copy of the statutes and regulations of
the state of domicile of the insurer under which it is authorized to issue
variable life insurance policies; and
(6) a statement of the insurer's actuary
describing the mortality and expense risks which the insurer will bear under
the policy.
(c)
Standards of suitability. Every insurer seeking approval to enter
into the variable life insurance business in this state shall establish and
maintain a written statement specifying the Standards of Suitability to be used
by the insurer. Such Standards of Suitability shall specify that no
recommendation shall be made to an applicant to purchase a variable life
insurance policy and that no variable life insurance policy shall be issued in
the absence of reasonable grounds to believe that the purchase of such policy
is not unsuitable for such applicant on the basis of information furnished
after reasonable inquiry of such applicant concerning the applicant's insurance
and investment objectives, financial situation and needs, and any other
information known to the insurer or to the agent making the
recommendation.
(d)
Use of
sales materials: An insurer authorized to transact variable life
insurance business in this state shall not use any sales material, advertising
material, or descriptive literature or other materials of any kind in
connection with its variable life insurance business in this state which is
false, misleading, deceptive, or inaccurate.
(1) All variable life insurance sales
material, advertising material, and descriptive literature shall be filed 30
business days prior to use with the Commissioner who shall require an insurer
to cease the use of any such materials upon finding that any such materials are
false, misleading, deceptive, or inaccurate. Revised versions of such materials
containing changes of substantial import from versions on file with the
Commissioner shall be filed with the Commissioner.
(2) For purposes of this regulation, variable
insurance sales material, advertising material, or descriptive literature shall
include but is not limited to:
(A) printed
and published material, audio-visual material, and descriptive literature of an
insurer used in direct mail, newspapers, magazines, radio scripts, TV and film
scripts, billboards, and similar displays for variable life
insurance;
(B) descriptive
literature and sales aids of all kinds used to sell variable life insurance by
or on behalf of an insurer or any person authorized to sell variable life
insurance for presentation to members of the insurance-buying public, including
but not limited to circulars, leaflets, booklets, depictions, illustrations,
and form letters; and
(C) prepared
sales talks, presentations, and material for use in the sale of variable life
insurance by any person authorized to sell variable life insurance.
(e)
Requirements
applicable to contractual services. Any material contract between an
insurer and suppliers of consulting investment, administrative, sales,
marketing, custodial, or other services with respect to variable life insurance
operations shall be in writing and provide that the supplier of such services
shall furnish the Commissioner with any information or reports in connection
with such services which the Commissioner may request in order to ascertain
whether the variable life insurance operations of the insurer are being
conducted in a manner consistent with these regulations and any other
applicable law or regulations.
(f)
Reports to the commissioner: Any insurer authorized to transact
the business of variable life insurance in this state shall submit to the
Commissioner, in addition to any other materials which may be required by this
regulation or any other applicable laws or regulations:
(1) An Annual Statement of the business of
its separate account or accounts in such form as may be prescribed by the
Commissioner; and
(2) prior to the
use in this state any Information Furnished to applicants as provided for in
Sec.
38a-433-7;
and
(3) prior to the use in this
state the form of any of the Reports to Policyholders as provided for in Sec.
38a-433-9;
and
(4) such additional information
concerning its variable life insurance operations or its separate accounts as
the Commissioner shall deem necessary.
Any material submitted to the Commissioner under this Section
shall be disapproved if it is found to be false, misleading, deceptive, or
inaccurate in any material respect and, if previously distributed, the
Commissioner shall require the distribution of amended material.
(g)
Authority of
commissioner to disapprove: Any material required to be filed with and
approved by the Commissioner shall be subject to disapproval if at any time it
is found by him not to comply with the standards established by this
regulation.
