Louisiana Administrative Code
Title 37 - INSURANCE
Part XIII - Regulations
Chapter 183 - Regulation Number 121-Term and Universal Life Insurance Reserve Financing
Section XIII-18307 - Exemptions
Universal Citation: LA Admin Code XIII-18307
Current through Register Vol. 50, No. 3, March 20, 2024
A. This regulation does not apply to the situations described in Paragraphs 1-7.
1. Reinsurance of:
a. policies that satisfy the criteria for
exemption set forth in
§10911.F and
§10911.G of
Regulation 85 and that are issued before the later of:
i. September 1, 2022; and
ii. the date on which the ceding insurer
begins to apply the provisions of VM-20 to establish the ceded policies'
statutory reserves, but in no event later than January 1, 2020;
b. portions of policies that
satisfy the criteria for exemption set forth in
§10911.E of
Regulation 85 and that are issued before the later of:
i. September 1, 2022; and
ii. the date on which the ceding insurer
begins to apply the provisions of VM-20 to establish the ceded policies'
statutory reserves, but in no event later than January 1, 2020;
c. any universal life policy that
meets all of the following requirements:
i.
secondary guarantee period, if any, is five years or less;
ii. specified premium for the secondary
guarantee period is not less than the net level reserve premium for the
secondary guarantee period based on the Commissioners Standard Ordinary (CSO)
valuation tables and valuation interest rate applicable to the issue year of
the policy; and
iii. the initial
surrender charge is not less than 100 percent of the first year annualized
specified premium for the secondary guarantee period;
d. credit life insurance;
e. 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; or
f. any group life insurance certificate
unless the certificate provides 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.
2.
Reinsurance ceded to an assuming insurer that meets the applicable requirements
of
R.S.22:651(D);
or
3. Reinsurance ceded to an
assuming insurer that meets the applicable requirements of
R.S.22:651(B)
or (C), and that, in addition:
a. prepares statutory financial statements in
compliance with the NAIC Accounting Practices and Procedures Manual, without
any departures from NAIC statutory accounting practices and procedures
pertaining to the admissibility or valuation of assets or liabilities that
increase the assuming insurer's reported surplus and are material enough that
they need to be disclosed in the financial statement of the assuming insurer
pursuant to Statement of Statutory Accounting Principles No. 1 (SSAP 1);
and
b. is not in a company action
level event, regulatory action level event, authorized control level event, or
mandatory control level event as those terms are defined in
R.S.
22:613 through
22:616
when its risk-based capital (RBC) is calculated in accordance with the life
risk-based capital report including overview and instructions for companies, as
the same may be amended by the NAIC from time to time, without deviation;
or
4. reinsurance ceded
to an assuming insurer that meets the applicable requirements of
R.S.22:651(B)
or (C), and that, in addition:
a. is not an affiliate, as that term is
defined in
R.S.
22:691.2(1), of:
i. the insurer ceding the business to the
assuming insurer; or
ii. any
insurer that directly or indirectly ceded the business to that ceding
insurer;
b. prepares
statutory financial statements in compliance with the NAIC Accounting Practices
and Procedures Manual;
c. is both:
i. licensed or accredited in at least 10
states (including its state of domicile), and
ii. not licensed in any state as a captive,
special purpose vehicle, special purpose financial captive, special purpose
life reinsurance company, limited purpose subsidiary, or any other similar
licensing regime; and
d.
is not, or would not be, below 500 percent of the authorized control
level RBC as that term is defined in
R.S.
22:611(8)(a) when its RBC is
calculated in accordance with the life risk-based capital report including
overview and instructions for companies, as the same may be amended by the NAIC
from time to time, without deviation, and without recognition of any departures
from NAIC statutory accounting practices and procedures pertaining to the
admission or valuation of assets or liabilities that increase the assuming
insurer's reported surplus; or
5. reinsurance ceded to an assuming insurer
that meets the requirements of
R.S.
22:661(B)(4); or
6. reinsurance not otherwise exempt under
Subsections A through E if the commissioner, after consulting with the NAIC
Financial Analysis Working Group (FAWG) or other group of regulators designated
by the NAIC, as applicable, determines under all the facts and circumstances
that all of the following apply:
a. the risks
are clearly outside of the intent and purpose of this regulation, as described
in §18301 above;
b. the risks are
included within the scope of this regulation only as a technicality;
and
c. the application of this
regulation to those risks is not necessary to provide appropriate protection to
policyholders. The commissioner shall publicly disclose any decision made
pursuant to §18307.F to exempt a reinsurance treaty from this regulation, as
well as the general basis therefor (including a summary description of the
treaty); or
7. meets the
conditions set forth in
R.S.
22:651(F) in this
state.
AUTHORITY NOTE: Promulgated in accordance with R.S. 22:11, 22:651, 22:652, 22:661, 22:753, and the Administrative Procedure Act, R.S. 49:950 et seq.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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