Current through Rules and Regulations filed through March 20, 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:
(1) 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:
(a)
the insurer is licensed or organized to transact the business of life insurance
in this State;
(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 such
written approval only after he has found that:
1. the plan of operation for the issuance of
variable life insurance policies is not unsound;
2. the insurer has the administrative
capability in terms of executive qualifications and staff qualifications as
well as the computer capability to comply with the requirements of this
Regulation;
3. 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
4. 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 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.
5. the company has submitted
either as a part of its application for variable life authority (or within
ninety (90) days after the effective date of this Regulation for those
companies presently authorized for variable life insurance in this State) a
detailed outline of the training course agents will receive with respect to
variable life insurance. This preexamination course should meet the following
requirements:
(i) candidates for variable life
agents' licenses must hold a current life agents' license and be a N.A.S.D.
Registered Representative.
(ii) the
preexamination course must contain a minimum of eight (8) classroom hours of
instruction.
(iii) the instructors
must have had training or educational experience satisfactory to the
Commissioner in order to be certified to teach any part of an approved course.
Each instructor must have two (2) or more years in relevant insurance work or
otherwise qualify with equivalent educational and teaching experience and be
approved in writing by the Commissioner prior to teaching any preexamination
course or any part thereof, which has been approved by the
Commissioner.
(iv) reference
materials such as sample policy forms, prospectuses, policy proposals and
projections, reports to policyholders as required by this Regulation, the
Georgia Insurance Code, text books, study manuals as appropriate and any other
illustrative materials are required to be readily available for students'
use.
(v) All classrooms used shall
be rooms separate from other activities while instruction is being given, while
providing comfortable and appropriate physical facilities for the
students.
(vi) The subject matter
of agent's preexamination courses must include the applicable provisions of the
Georgia law and Georgia Insurance Department Regulations regarding variable
life insurance.
(2) Filing for Approval to do Business in
this State. Before any insurer shall deliver or issue for delivery or permit
agents to offer for sale any of its variable life insurance policies in this
State, it must file with this Department completed application forms provided
by the Department including but not limited to the following information for
the consideration of the Commissioner in making the determination required by
Section (1)(b) of this Rule:
(a) copies of and
a general description of the variable life insurance policies it intends to
issue:
(b) 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;
(c) 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, and a statement of the procedures for
changing such investment policy. The statement of investment policy shall
include a description of the investment objectives intended for the separate
account;
(d) a description of any
investment advisory services contemplated as required by Section (10) of rule
120-2-32-.07;
(e) 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;
(f) biographical data with respect to
officers and directors of the insurer on the National Association of Insurance
Commissioners Uniform Biographical Data Form; and
(g) a statement by the insurer's actuary
describing the mortality and expense risks which the insurer will bear under
the policy.
(3)
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 recommendations
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.
(4) 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.
Additionally, such insurers shall file all variable life insurance sales
material, advertising material, and descriptive literature thirty (30) business
days prior to use with the Commissioner. The Commissioner 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 substantial changes from versions on file with the
Commissioner shall be filed with the Commissioner in accordance with the
foregoing requirement.
Variable life insurance sales material, advertising material,
and descriptive literature shall be subject to the additional requirements of
Chapter 120-2-11 of the Rules and Regulations of the Georgia Insurance
Department.
(5)
Requirements Applicable to Contractual Services. The following requirements
shall be applicable to contractual services:
Any national 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 this Regulation and any other applicable law or regulation.
(6) 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 law or
regulation:
(a) an annual statement of the
business of its separate account or accounts in such form as may be prescribed
by the National Association of Insurance Commissioners; and
(b) prior to the use in this State any
information furnished to applicants as provided for in Rule
120-2-32-.08; and
(c) prior to the use in this State the form
of any of the Reports to Policyholders as provided for in Rule
120-2-32-.10; and
(d) such additional information concerning
its variable life insurance operations or its separate accounts as the
Commissioner shall deem necessary; and
(e) any material submitted to the
Commissioner under this Section (6) 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.
(7)
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.
O.C.G.A. Secs.
33-2-9,
33-11-36.
