Current through Register Vol. XLI, No. 38, September 20, 2024
3.1. The requirements of this section 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.
3.2. Licensing and Approval to do
Business in This State. An insurer may not deliver or issue for delivery in this
state any variable life insurance policies unless:
3.2.a. The insurer is licensed or organized to do
a life insurance business in this state;
3.2.b. 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 written approval only after the
Commissioner has found that:
3.2.b.1. The plan of
operation for the issuance of variable life insurance policies is sound;
3.2.b.2. 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
3.2.b.3. 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:
3.2.b.3.A. The history of operation
and financial condition of the insurer;
3.2.b.3.B. 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;
3.2.b.3.C. 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
3.2.b.3.D. 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, meets these standards.
3.3. Filing for Approval to do Business
in This State. The Commissioner may, at his or her discretion, require that an
insurer, before it delivers or issues for delivery any variable life insurance
policy in this state, file with the Commissioner the following information for the
consideration of the Commissioner in making the determination required by
subdivision b, subsection 3.2 of this section:
3.3.a. Copies of and a general description of the
variable life insurance policies it intends to issue;
3.3.b. 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;
3.3.c. With respect to any
separate account maintained by an insurer for a variable life insurance policy, a
statement of the investment policy the issuer intends to follow for the investment
of the assets held in the separate account and a statement of procedures for
changing the investment policy. The statement of investment policy shall include a
description of the investment objectives intended for the separate
account;
3.3.d. A description of any
investment advisory services contemplated as required by subsection 6.9 of this
rule;
3.3.e. 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;
3.3.f. Biographical data with respect to officers
and directors of the insurer on the National Association of Insurance Commissioners
Uniform Biographical Data Form; and
3.3.g. A statement of the insurer's actuary
describing the mortality and expense risks which the insurer will bear under the
policy.
3.4. Standards of
Suitability. 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. The standards of
suitability shall specify that no recommendation 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
the policy is suitable for the applicant on the basis of information furnished after
reasonable inquiry of the applicant concerning the applicant's insurance and
investment objectives, financial situation and needs, and any other information
known to the insurer or the producer making the recommendation.
3.5. Use of Sales Materials. An insurer authorized
to transact variable life insurance business in this state may 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. Variable life insurance sales material,
advertising material and descriptive literature shall be subject to the additional
requirements of W. Va. Code of St. R. §114 CSR 11.
3.6. Requirements Applicable to Contractual
Services. 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 the 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 this rule and any other applicable law or
rules.
3.7. Reports to the Commissioner.
3.7.a. An insurer authorized to transact the
business of variable life insurance in this state shall submit to the Commissioner,
in addition to any other materials that may be required by this rule or any other
applicable laws or rules:
3.7.a.1. An annual
statement of the business of its separate account or accounts in such forms as may
be prescribed by the National Association of Insurance Commissioners; and
3.7.a.2. Prior to the use in this state any
information furnished to applicants as provided for in section 7 of this rule;
and
3.7.a.3. Prior to the use in this
state the form of any of the reports to policyholders as provided for in section 9
of this rule; and
3.7.a.4. Such
additional information concerning its variable life insurance operations or its
separate accounts as the Commissioner shall deem necessary.
3.7.b. Any material submitted to the Commissioner
under this section 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.
3.8. Authority of Commissioner to
Disapprove. Any material required to be filed with and approved by the Commissioner
is subject to disapproval if at any time it is found by him or her not to comply
with the standards established in this rule.
