R590. Insurance,
Administration.
R590-226. Submission of Life Insurance Filings.
(Effective 9-7-06)
R590-226-1. Authority.
This rule is promulgated by the insurance commissioner pursuant
to Subsections 31A-2-201(3), 31A-2-201.1, and 31A-2-202(2).
R590-226-2. Purpose and Scope.
(1) The purpose of this rule is to set forth the procedures for
submitting:
(a) life insurance filings required by Section 31A-21-201; and
(b) report filings required by R590-177.
(2) This rule applies to:
(a) all types of individual and group life insurance and
variable life insurance; and
(b) group life insurance contracts issued to nonresident
policyholders, including trusts, when Utah residents are provided coverage by
certificates of insurance.
R590-226-3. Documents
Incorporated by Reference.
(1) The department requires that the documents described in
this rule must be used for all filings. Actual copies may be used or you may
adapt them to your word processing system. If adapted, the content, size, font,
and format must be similar.
(2) The following documents are hereby incorporated by
reference and are available on the department's website,
www.insurance.utah.gov.
(a) "NAIC Life, Accident and Health, Annuity, Credit
Transmittal Document," dated January 1, 2006.
(b) "NAIC Uniform Life, Accident and Health, Annuity and Credit
Coding Matrix," dated January 1, 2006.
(c) "NAIC Instruction Sheet for Life, Accident and Health,
Annuity, Credit Transmittal Document," dated January 1, 2006.
(d) "NAIC Instruction Sheet for Life, Accident and Health,
Annuity, Credit Transmittal Document Form Filing Attachment," dated January 1,
2006.
(e) "Utah Life Filing Certification for Individual," dated June
2006.
(f) "Utah Life Filing Certification for Group," dated June
2006.
(g) "Utah Life and Annuity Group Questionnaire," dated June
2006.
(h) "Utah Life and Annuity Request for Discretionary Group
Authorization," dated June 2006.
(i) "Utah Annual Life Insurance Illustration Certification
Filing Checklist," dated June 2006.
R590-226-4. Definitions.
In addition to the definitions in Section 31A-1-301, the
following definitions shall apply for the purpose of this rule:
(1)
"Certification" means a statement that the filing being submitted is in
compliance with Utah laws and rules.
(2) "Data page" means the page or pages in a
policy or certificate that provide the specific data for the insured detailing
the coverage provided and may be titled by the insurer as policy specifications,
policy schedule, policy information, etc.
(3) "Discretionary group" means a group that
has been specifically authorized by the commissioner under Section 31A-22-509.
(4) "Eligible group" means a group that meets
the definitions in Sections 31A-22-502 through 31A-22-508.
(5) "Endorsement" means a written agreement
attached to a life insurance policy that alters a provision of the policy, for
example, a war exclusion endorsement, a name change endorsement and a tax
qualification endorsement.
(6) "File and Use" means a filing can be used,
sold, or offered for sale after it has been filed with the department.
(7) "Filer" means a person or entity that
submits a filing.
(8) "Filing," when used as a noun, means an
item required to be filed with the department including:
(a) a policy;
(b) a form;
(c) a document;
(d) an application;
(f) a certificate;
(g) an endorsement;
(h) a rider;
(i) a life insurance illustration;
(j) a statement of policy cost and benefit information; and
(k) an actuarial memorandum, demonstration, and certification.
(9) "Filing status information" means a list of the states
to which the filing was submitted, the date submitted, and the states' actions,
including their responses.
(10) "Issue Ages" means the range of minimum and maximum ages for which a
policy or certificate will be issued.
(11) "Letter of Authorization" means a letter signed by an
officer of the insurer on whose behalf the filing is submitted that designates
filing authority to the filer.
(12) "Market type" means the type of policy that indicates the
targeted market such as individual or group.
(13) "Order to Prohibit Use" means an order issued by the
commissioner that forbids the use of a filing.
(14) Rejected" means a filing is:
(a) not submitted in accordance with applicable laws or rules;
(b) returned to the filer by the department with the reasons
for rejection; and
(c) not considered filed with the department.
(15) "Rider" means a written agreement attached to a life
insurance policy or certificate that adds a benefit, for example, a waiver of
premium rider, an accidental death benefit rider and a term insurance rider.
(16) "Type of insurance" means a specific life insurance
product including, but not limited to, term, universal, variable, or whole life.
Refer to the NAIC Coding Matrix.
R590-226-5. General Filing
Information.
(1) Each filing document submitted within the filing must be
accurate, consistent, and complete. Each filing must contain all required
documents in order for the filing to be processed in a timely and efficient
manner. The commissioner may request any additional information deemed
necessary.
(2) Insurers and filers are responsible for assuring compliance
with Utah laws and rules. A filing not in compliance with Utah laws and rules
is subject to regulatory action under Section 31A-2-308.
(3) A filing that does not comply with this rule may be
rejected and returned to the filer. A rejected filing is not considered filed
with the department.
(4) A prior filing will not be researched to determine the
purpose of the current filing.
(5) The department does not review or proofread every filing.
(a) Filings may be reviewed:
(i) when submitted;
(ii) as a result of a complaint;
(iii) during a regulatory examination or investigation; or
(iv) at any other time the department deems necessary.
(b) If a filing is reviewed and is found to be not in
compliance with Utah laws and rules, an
ORDER TO PROHIBIT USE will be issued to the filer. The commissioner may
require the filer to disclose deficiencies in forms or rating practices to
affected contract holders.
(6) Filing Correction.
(a) No filing transmittal is required when making a
correction to a misspelled word and punctuation in a
filing. The filing will be considered an informational filing.
(b) No transmittal is required when a clerical
correction is made to a previous filing if submitted within
30 days of the date filed with the department. The filer must reference the
original filing or include a copy of the original transmittal.
(c) A new filing is required if a clerical
correction is made more than 30 days after the date filed with the department.
The filer must reference the original filing or include a copy of the original transmittal.
(7) Filing withdrawal. A filer must notify the department
when withdrawing a previously filed form, rate, or supplementary information.
R590-226-6. Filing Submission
Requirements.
Filings must be
submitted by market type and type of insurance. A filing may not include more
than one type of insurance, or request filing for more than one insurer. A
complete filing consists of the following documents and submitted in the
following order:
(1) Transmittal. Note: Based on the use of the NAIC
Transmittal Document, a cover letter is not required. The "NAIC Life, Accident
and Health, Annuity, Credit Transmittal Document" must be used. It can be found
at
www.insurance.utah.gov/LH_Trans.pdf.
(a) COMPLETE THE TRANSMITTAL BY USING THE FOLLOWING:
(i) "NAIC Coding Matrix"
www.insurance.utah.gov/LifeA&H_Matrix.pdf,
(ii) "NAIC" Instruction Sheet"
www.insurance.utah.gov/LH_Trans_Inst.pdf,
(iii) "Life Content Standards"
www.insurance.utah.gov/Life_STM.html.
(iv) Do not submit the documents described in section (a)(i),
(ii), and (iii) with a filing.
(b) Filing Description Section. The following information must
be included in the Filing Description Section of the NAIC transmittal and must
be presented in the order shown below:
(i) Domiciliary Approval and Filing Status Information.
Foreign insurers and filers must first submit filings to their domicile state.
All filings must include domicile and filing status information.
(A) If a filing was submitted to the domicile state,
provide a stamped copy of the approval letter from the domicile state for the
exact same filing; and
(B) If a filing was not submitted to the domicile state, or the
domicile state did not provide specific approval for the filing, then the
following alternate filing status information must be provided:
(I) a
list of the states to which the filing was submitted;
(II) the date
submitted;
(III) the
states' actions and their responses.
(C) If the
filing is specific to Utah and only filed in Utah, then Section 14 of the
transmittal must be completed stating, "UTAH SPECIFIC - NOT SUBMITTED TO ANY
OTHER STATE."
(ii) Marketing Facts.
(A) List the issue ages.
(B) List the minimum initial premium.
(C) Identify the intended market for the filing, such as senior
citizens, nonprofit organizations, association members, including any particular
tax qualified market and the federal law under which the contract will be
marketed.
(D) Describe the marketing and advertising in detail, i.e.
individually solicited through licensed producers, marketed through a marketing
association, financial institutions, Internet, or telemarketing.
(iii) Description of Filing.
(A) Provide a detailed description of the purpose of the
filing.
(B) Describe the benefits and features of each form in the
filing including specific features and options, including nonforfeiture options.
(C) Identify any new, unusual, or controversial provisions.
(D) Identify any unresolved previously prohibited provisions
and explain why the provisions are included in the filing.
(E) Explain any changes in benefits, charges, terms, premiums,
or other provisions that may occur while the contract is in force.
(F) If the filing is replacing or modifying a previous
submission, provide information that identifies the filing being replaced or
modified, the Utah date, and a detailed description of the changes and
highlight the changed provisions.
(G) If the filing includes forms for informational purposes,
provide the dates the forms were filed.
(H) If filing an application, rider, or endorsement, and
the filing does not contain a contract, identify the affected contract form
number, the Utah filed date, and describe the effect of the submitted forms on
the base contract.
(iv) Underwriting Methods. Provide a general explanation of
the underwriting applicable to this filing.
(2) Certification. In addition to completing the certification
on the NAIC transmittal, the filer must complete and submit the "Utah Annuity
Filing Certification". A filing will be rejected if the certification is
missing or incomplete. A certification that is inaccurate may subject the filer
to administrative action.
(3) Group Questionnaire or Discretionary Group Authorization
Letter. All group filings must identify each type of group, and include either
a completed "Utah Life and Annuity Group Questionnaire", or copy of the "Utah
Life and Annuity Discretionary Group Authorization letter".
(4) Letter of Authorization. If the filer is not the insurer,
a letter of authorization from the insurer must be included. The insurer
remains responsible for the filing being in compliance with Utah laws and rules.
(5) Statement of Variability. Any item or provision on the
data page or within the form that is variable must be contained within the
brackets. List the ranges of variable items or factors within the brackets.
Each variable item must be identified and explained in a statement of
variability. If the information contained within the brackets changes, the form
must be refiled.
(6) Items being submitted for filing. Refer to each applicable
subsection of this rule for general procedures and additional procedures on how
to submit forms and reports.
(7) Annuity Report. All annuity filings must include a sample
annuity annual report.
(8) Actuarial Memorandum, Demonstration, and
Certification of Compliance. An actuarial memorandum, demonstration, and a
certification of compliance are required in annuity filings. The memorandum must
be currently dated and signed by the actuary. The memorandum must include:
(a) description of the coverage in detail;
(b) demonstration of compliance with applicable nonforfeiture
and valuation laws; and
(c) a certification of compliance with Utah law.
(9) Return Notification Materials.
(a) Return notification materials are limited to:
(i) a copy of the transmittal; and
(ii) a self-addressed, stamped envelope.
(b) Notice of filing will not be provided unless return
notification materials are submitted.
R590-226-7. Procedures for
Filings.
(1) Forms in General.
(a) Forms are "File and Use" filings.
(b) Each form must:
(i) be identified by a unique form number; and
(ii) contain a descriptive title on the cover page.
(c) The form number and the policy cover page descriptive title
may not be variable.
(d) Forms must be in final printed form or printer's proof
format. Drafts may not be submitted.
(e) The form must be completed in John Doe fashion to
accurately represent the intended market, purpose, and use.
(i) If the market intended is for the senior age group,
the form must be completed with data representative of senior insureds.
(ii) All John Doe data in the forms including the data page
must be accurate and consistent with the actuarial memorandum, the basic
illustration, the Statement of Policy Cost and Benefit information, and the
application, as applicable.
(iii) When submitting a rider or endorsement, include a sample
policy data page that includes the rider or endorsement information.
(iv) Forms may include variable data within brackets. All
variable data must be identified within the specific section, or a statement of
variability included with the submission.
(2) Policy Filings.
(a) Each type of insurance must be filed separately. A policy
filing consists of one policy form for a single type of insurance including its
related forms, such as the application, sample data page, rider, endorsement,
and actuarial memorandum.
(b) A policy data page must be included with every policy
filing.
(c) Only one policy form for a single type of insurance may be
filed, in each filing a life insurance policy with different premium payment
periods is considered one form.
(d) A policy data page that changes the basic feature of the
policy may not be filed without including the entire policy form in the filing.
A filing consisting of only a data page without the policy form will be rejected
as incomplete.
(3) Rider or Endorsement Filing.
(a) Related riders or endorsements may be filed as a single
filing.
(b) A rider or endorsement that is based on morbidity risks,
such as critical illness or long-term care, is considered accident and health
insurance and must be filed in accordance with Rule R590-220, "Accident and
Health Insurance Filings."
(c) A single rider or endorsement that affects multiple policy
forms may be filed separately if the Filing Description references all affected
forms.
(d) The filing must include:
(i) a listing of all base policy form numbers, title and dates
filed with the Utah Insurance Department;
(ii) a description of how each filed rider or endorsement
affects the base policy; and
(iii) a sample data page with data for the submitted form.
(4) Application Filings. Each application or enrollment form
may be submitted as a separate filing or may be filed with its related policy or
certificate filing. If an application has been previously filed or is filed
separately, an informational copy of the application must be included with the
policy or certificate filing.
R590-226-8. Additional
Procedures for Individual Life Insurance Forms and Group Life Insurance
Certificates Marketed Individually.
(1) Insurers filing life insurance forms are advised to review
the following code sections and rules prior to submitting a filing:
(a) Section 31A-21 Part III, "Specific Clauses in Contracts;"
(b) Section 31A-22 Part IV, "Life Insurance and Annuities;"
(c) R590-79, "Life Insurance Disclosure Rule;"
(d) R590-93, "Replacement of Life Insurance and Annuities;"
(e) R590-94, "Smoker/Nonsmoker Mortality Tables";
(f) R590-95, "Minimum Nonforfeiture Standards 1980 CSO and 1980
CET Mortality Tables;"
(g) R590-98, "Unfair Practice in Payment of Life Insurance and
Annuity Policy Values;"
(h) R590-108, "Interest Rate During Grace Period or Upon
Reinstatement of Policy;"
(i) R590-122, "Permissible Arbitration Provisions;"
(j) R590-177, "Life Insurance Illustrations;"
(k) R590-191, "Unfair Life Insurance Claims Settlement
Practice;"
(l) R590-198, "Valuation of Life Insurance Policies;" and
(m) R590-223, "Rule to Recognize 2001 CSO Mortality
Table."
(2) Every individual life insurance policy, rider or
endorsement providing benefits, and every group life insurance filing including
certificates that are marketed individually, shall include an actuarial
memorandum, a demonstration, and a certification of compliance for nonforfeiture
and valuation. Refer to the following:
(a) Section 31A-22-408, "Standard Nonforfeiture Law for Life
Insurance;"
(b) Section 31A-17 Part V, "Standard Valuation Law."
R590-226-9. Additional
Procedures for Group Market Filings.
(1) Insurers submitting group life insurance filings are
advised to review the following code sections and rules prior to submitting a
filing:
(a) Section 31A-21 Part III, "Specific Clauses in Contracts;"
(b) Section 31A-22 Part IV, "Life Insurance and Annuities;"
(c) Section 31A-22 Part V, "Group Life Insurance;"
(d) R590-79, "Life Insurance Disclosure Rule;"
(e) R590-191, "Unfair Life Insurance Claims Settlement
Practice."
(2) A policy must be included with each certificate filing
along with a master application and enrollment form.
(3) Statement of Policy Cost and Benefit Information. A
statement of policy cost and benefit information must be included in non-term
group life insurance and preneed funeral policies or prearrangements. This
disclosure requirement shall extend to the issuance or delivery of certificates
as well as to the master policy in compliance with R590-79-3.
(4) Actuarial Memorandum. An actuarial memorandum must be
included in all group life insurance filings describing the coverage in detail
and certifying compliance with applicable laws and rules. For non-term group
life filings, the memorandum must also demonstrate nonforfeiture compliance with
Section 31A-22-515.
(5) Eligible Group. A filing for an eligible group must
include a completed "Utah Life and Annuity Group Questionnaire."
(a) A questionnaire must be completed for each eligible group
under Section 31A-22-502 through 508.
(b) When a filing applies to multiple employer-employee groups
under Section 31A-22-502, only one questionnaire is required to be completed.
(6) Discretionary Group. If a group is not an eligible group,
then specific discretionary group authorization must be obtained prior to
submitting the filing. If a form filing is submitted without discretionary group
authorization, the filing will be rejected.
(a) To obtain discretionary group authorization a "Utah Life
and Annuity Request For Discretionary Group Authorization" must be submitted and
include all required information.
(b) Evidence or proof of the following items are some factors
considered in determining acceptability of a discretionary group:
(i) existence of a verifiable group;
(ii) that granting permission is not contrary to public policy;
(iii) the proposed group would be actuarially sound;
(iv) the group would result in economies of acquisition and
administration which justify a group rate; and
(v) the group would not present hazards of adverse selection.
(c) Discretionary group filings that do not provide
authorization documentation will be rejected.
(d) Any changes to an authorized discretionary group must be
submitted to the department, such as; change of name, trustee, domicile state,
within 30 days of the change.
(e) The commissioner may periodically re-evaluate the group's
authorization.
R590-226-10. Additional Procedures for Variable Life Filings.
(1) Insurers submitting variable life filings are advised to
review the following code sections and rules prior to submitting a filing:
(a) Section 31A-22-411, "Contracts Providing Variable
Benefits;"
(b) R590-133, "Variable Contracts."
(2) A variable life insurance policy must have been previously
approved or accepted by the insurer's state of domicile before it is submitted
for filing in Utah.
(3) Information regarding the status of the filing of the
variable life insurance policy with the Securities and Exchange Commission must
be included in the filing.
(4) The transmittal description and the actuarial memorandum
must:
(a) describe the types of accounts available in the policy; and
(b) identify those accounts that are separate accounts,
including modified guaranteed accounts, and those that are general accounts.
(5) The actuarial memorandum must demonstrate nonforfeiture
compliance:
(a) for separate accounts pursuant to Section 31A-22-411; and
(b) for fixed interest general accounts pursuant to Section
31A-22-408.
(c) In addition, for fixed accounts, the actuarial memorandum
must:
(i) identify the guaranteed minimum interest rate, and
(ii) identify the maximum surrender charges.
(6) A prospectus is not required to be filed.
R590-226-11. Additional Procedures for Policies, Riders or Endorsements
Providing a Combination of Life and Accident and Health Benefits.
(1) A combination filing consists of a policy, rider or
endorsement that creates a product that provides both life and accident and
health insurance benefits. The two types of acceptable filings are:
(a) a rider or endorsement attached to a policy; or
(b) an integrated policy.
(2) Combination filings take considerable time to process and
will be processed separately by both the life insurance and the health insurance
divisions.
(3) Combination filings must include transmittals for both the
life insurance and the health insurance divisions.
(4)(a) For an integrated policy, the filing must be submitted
to the appropriate division based on benefits provided in the base policy.
(b) For a rider or endorsement, the filing must be submitted to
the appropriate division based on benefits provided in the rider or endorsement.
(5) The Filing Description must identify the filing as having a
combination of insurance types, such as:
(a) term policy with a long-term care benefit rider; or
(b) major medical policy that includes a life insurance
benefit.
R590-226-12. Insurer Annual Reports.
(1) All insurer annual reports must be properly identified and
must be filed separately from other filings. Each annual report must be
submitted along with the properly completed report checklist.
(2) "Life Insurance Illustration Certification Annual Report".
(a) Filing must comply with R590-177-11. Life insurers
marketing life insurance with an illustration shall provide an annual
certification report to the commissioner each year by a date determined by the
insurer.
(b) The report must include:
(i) a completed "Utah Life Insurance Illustration Certification
Annual Report Checklist";
(ii) two cover letters along with a self-addressed stamped
envelope;
(iii) an Illustration Actuary's Certification signed and dated;
(iv) a Company Officer's Certification signed and dated; and
(v) a list of all policies forms for which the certification
applies.
R590-226-13. Electronic Filings.
Filers submitting electronic filings must follow the
requirements for both the electronic system and this rule, as applicable.
R590-226-14. Correspondence, Status Checks, and Responses.
(1) Correspondence. When corresponding with the department,
filers must provide sufficient information to identify the original filing:
(a) type of insurance;
(b) date of filing;
(c) form numbers; and
(d) copy of the original transmittal.
(2) Status Checks. Filers may request the status of their
filing by telephone, or email 60 days after the date of submission.
(3) Response to an Order.
(a) A response to an order must include:
(i) a response cover letter identifying the changes made;
(ii) a copy of the Order to Prohibit Use;
(iii) one copy of the revised documents with all changes
highlighted; and
(iv) return notification materials, which consist of a copy of
the response cover letter and a self-addressed stamped envelope.
(4) Rejected Filings.
(a) A rejected filing is NOT considered filed. If resubmitted
it is considered a new filing.
(b) If resubmitting a previously rejected filing, the new
filing must include a copy of the rejection notice.
R590-226-15. Penalties.
Persons found, after a hearing or other regulatory process, to
be in violation of this rule shall be subject to penalties as provided under
Section 31A-2-308.
R590-226-16. Enforcement
Date.
The commissioner will begin enforcing the revised
provisions of this rule upon the effective date of this
rule.
KEY: life insurance filings
Date of Enactment or Last Substantive Amendment: 2006
Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-201.1;
31A-2-202
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