Louisiana Administrative Code
Title 37 - INSURANCE
Part XIII - Regulations
Chapter 83 - Regulation 35-Variable Life Insurance Model Regulation
Section XIII-8303 - Qualification of Insurer to Issue Variable Life Insurance
Universal Citation: LA Admin Code XIII-8303
Current through Register Vol. 50, No. 3, March 20, 2024
A. 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
a. An insurer shall not deliver or
issue for delivery in this state any variable life insurance policy unless:
i. the insurer is licensed or organized to do
a life insurance business in this state;
ii. 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:
(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.
2. Filing for Approval to Do Business in This
State
a. 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 §8303. A.1:
i.
copies of and a general description of the variable life insurance policies it
intends to issue;
ii. 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;
iii. with respect to any separate account
maintained by an insurer for any variable life insurance policy, a statement of
the investment policy the issuer intends to follow for the investment of the
assets held in such separate account, and a statement of procedures for
changing such investment policy. The statement of investment policy shall
include a description of the investment objectives intended for the separate
account;
iv. a description of any
investment advisory services contemplated as required by §8309. A.10;
v. 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
vi. biographical data with respect to
officers and directors of the insurer on the National Association of Insurance
Commissioners Uniform Biographical Data Form; and
vii. a statement of the insurer's actuary
describing the mortality and expense risks which the insurer will bear under
the policy.
3. Standards of Suitability
a. 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
a. 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.
5. Requirements Applicable to Contractual
Services
a. 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.
6. Reports to the Commissioner
a. 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:
i. 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
ii. prior to the use in this state any
information furnished to applicants as provided for in §8311; and
iii. prior to the use in this state, the form
of any of the reports to policyholders, as provided for in §8315; and
iv. such additional information concerning
its variable life insurance operations or its separate accounts as the
commissioner shall deem necessary.
b. Any material submitted to the commissioner
under §8303. A.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
a. 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 Regulation 35.
AUTHORITY NOTE: Promulgated in accordance with Title 22, Section 2 of the Insurance Laws of Louisiana.
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