Illinois Administrative Code
Title 50 - INSURANCE
Part 1409 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS
Section 1409.20 - Applicability
Universal Citation: 50 IL Admin Code ยง 1409.20
Current through Register Vol. 48, No. 12, March 22, 2024
This Part shall apply to all life insurance policies, with or without nonforfeiture values issued on or after January 1, 2000, subject to the following exceptions and conditions:
a) Exceptions
1) This Part does not apply to any individual
life insurance policy issued on or after January 1, 2000 if the policy is
issued in accordance with, and as a result of the exercise of, a reentry
provision contained in the original life insurance policy or any individual
life insurance policy of the same or greater face amount, issued before January
1, 2000 that guarantees the premium rates of the new policy. This Part also
does not apply to subsequent policies issued as a result of the exercise of
such a provision, or a derivation of the provision in the new policy.
2) This Part does not apply to any universal
life policy that meets all the following requirements with regard to all
secondary guarantee periods:
A) Secondary
guarantee period, if any, is 5 years or less;
B) Specified premium for the secondary
guarantee period is not less than the net level reserve premium for the
secondary guarantee period based on the 1980 CSO valuation tables as defined in
Section
1409.30
and the applicable valuation interest rate; and
C) The initial surrender charge is not less
than 100% of the first year annualized specified premium for the secondary
guarantee period.
3)
This Part does not apply to any variable life insurance policy that provides
for life insurance, the amount or duration of which varies according to the
investment experience of any separate account or accounts.
4) This Part does not apply to any variable
universal life insurance policy that provides for life insurance, the amount or
duration of which varies according to the investment experience of any separate
account or accounts.
5) This Part
does not apply to group life insurance certificates unless the certificates
provide for a stated or implied schedule of maximum gross premiums required in
order to continue coverage in force for a period in excess of one
year.
6) This Part does not apply
to any policy that is subject to the requirements of a principle-based
valuation as determined by Section 223(8)(d)(ii) of the Code.
b) Conditions
1) Calculation of the minimum valuation
standard for policies with guaranteed nonlevel premiums or guaranteed nonlevel
benefits (other than universal life policies), or both, shall be in accordance
with the provisions of Section
1409.50.
2) Calculation of the minimum valuation
standard for flexible premium and fixed premium universal life insurance
policies that contain provisions resulting in the ability of a policyholder to
keep a policy in force over a secondary guarantee period shall be in accordance
with the provisions of Section
1409.60.
3) For preneed insurance contracts and
similar policies and contracts, as defined by 50 Ill. Adm. Code
1414.30, to which the
requirements of this Part apply, the minimum mortality standard for calculating
the minimum valuation standard in accordance with this Part shall be the 1980
CSO Valuation Tables without select factors, or the 2001 CSO Mortality Table in
accordance with the Transitional Rules prescribed in 50 Ill. Adm. Code
1414.50.
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