Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 29.00 - Valuation Of Life Insurance Policies
Section 29.03 - Applicability
Universal Citation: 211 MA Code of Regs 211.29
Current through Register 1531, September 27, 2024
211 CMR 29.00 shall apply to all life insurance policies, with or without nonforfeiture values, issued by a carrier on or after January 1, 2001, subject to the following exceptions and conditions.
(1) Exceptions.
(a)211 CMR 29.00 shall not apply
to any individual life insurance policy issued on or after January 1, 2001 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 of the same
or greater face amount, issued before January 1, 2001, that guarantees the
premium rates of the new policy,
211 CMR 29.00 also shall 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.
(b)211 CMR 29.00 shall not apply
to any universal life policy that meets all the following requirements:
1. The secondary guarantee period, if any, is
five years or less;
2. The
specified premium for the secondary guarantee period is not less than the net
level reserve premium for the secondary guarantee period based on the CSO
valuation tables as defined in
211 CMR 29.04 and the
applicable valuation interest rate; and
3. The initial surrender charge is not less
than 100% of the first year annualized specified premium for the secondary
guarantee period.
(c)211 CMR 29.00 shall 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.
(d)211 CMR 29.00 shall 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.
(e)211 CMR 29.00 shall not apply
to a 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) Conditions.
(a)
Calculation of the minimum valuation standard for policies with guaranteed
nonlevel gross premiums or guaranteed nonlevel benefits (other than universal
life policies), or both, shall be in accordance with the provisions of
211
CMR 29.06.
(b) 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
211
CMR 29.07.
(3) Nothing in 211 CMR 29.00 shall prohibit a carrier from complying with any provision of 211 CMR 29.00 prior to January 1, 2001.
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