Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 25 - LIFE AND ANNUITIES
Part 7 - Modified Guaranteed Annuities (230-RICR-20-25-7)
Section 230-RICR-20-25-7.5 - Authority of Insurers

a. No company shall deliver or issue for delivery modified guaranteed annuities within this state unless it is licensed or organized to do life insurance or annuity business in this state. The Director must be satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. The Director shall consider among other things the history and financial condition of the company; the character, responsibility and fitness of the officers and directors of the company; and the law and regulation under which the company is authorized in the state of domicile to issue such annuities.

b. If the company is a subsidiary of an admitted life insurance company or affiliated with such company by common management or ownership, it may be deemed by the Director to have satisfied the provision of § 7.5(A)(1)(a) of this Part if either the subsidiary or the admitted life company satisfies the provisions of § 7.5(A)(1)(a) of this Part. Companies licensed and having a satisfactory record of doing business in this state for a period of at least three (3) years may be deemed to have satisfied the Director with respect to § 7.5(A)(1)(a) of this Part above.

c. Before any company shall deliver or issue for delivery modified guaranteed annuities within this state, it shall submit to the Director a general description of the kinds of annuities it intends to issue. If requested by the Director, the following shall be submitted:

a. An insurer authorized to sell modified guaranteed annuities in this state shall not use any sales material, advertising material, descriptive literature or other materials of any kind in connection with the sale of modified guaranteed annuities in this state which is false, misleading, deceptive or inaccurate.

b. Illustrations of benefits payable under any modified guaranteed annuity shall not include projections of past investment experience into the future or attempted predictions of future investment experience, except that hypothetical assumed interest credits may be used to illustrate possible levels of benefits.

c. Before any insurer shall deliver or issue for delivery any modified guaranteed annuity contract in this state, the Director may require the filing of a copy of any prospectus or other sales material to be used in connection with the marketing of the insurer's modified guaranteed annuity contract. The sales material must clearly illustrate that there can be both upward and downward adjustments due to the application of the market value adjustment formula in determining nonforfeiture benefits.

a. A separate account annual statement which shall include the business of its modified guaranteed annuities; and

b. Such additional information concerning its modified guaranteed annuity operations or separate accounts as the Director shall deem necessary.