R590.
Insurance, Administration. (Effective 7-12-07)
R590-227.
Submission of Annuity Filings.
R590-227-1.
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).
R590-227-2.
Purpose and Scope.
(1) The
purpose of this rule is to set forth the procedures for submitting annuity
filings under Section 31A-21-201.
(2) This rule
applies to:
(a) all types
of individual and group annuities, variable annuities; and
(b) group
annuity contracts issued to nonresident contract holders, including trusts,
when Utah residents are provided coverage by certificates.
R590-227-3.
Incorporation by Reference.
(1) The department requires that documents
described in this rule shall
be used for all filings.
(a)
Actual copies may be used or you may adapt them to your word processing
system.
(b) If
adapted, the content, size, font, and format must be similar.
(2) The
following documents are hereby incorporated by reference and are available
at
www.insurance.utah.gov.
(a) "NAIC Life, Accident and Health, Annuity,
Credit Transmittal Document," dated March 1, 2007.
(b) "NAIC Uniform Life, Accident and Health,
Annuity and Credit Coding Matrix," dated March 1, 2007.
(c) "NAIC Life, Accident and Health, Annuity, Credit Transmittal
Document (Instructions)," dated March 1,
2007.
(d) "Utah Annuity Filing Certification," dated July 2007.
(e) "Utah Life and Annuity Group Questionnaire,"
dated July
2007.
(f) "Utah Life and Annuity Request for
Discretionary Group Authorization," dated July 2007.
R590-227-4.
Definitions.
In addition to
the definitions of 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) "Contract"
means the annuity policy including attached endorsements and riders;
(3) "Data
page" means the page or pages in a contract or certificate that provide the
specific data for the annuitant detailing the coverage provided and may be
titled by the insurer as contract data page, specifications page, contract
schedule, etc.
(4)
"Discretionary group" means a group that has been specifically authorized by
the commissioner under Section 31A-22-509.
(5)
“Electronic Filing” means:
(a) a
filing submitted via the Internet by using the “System for Electronic Rate
and Form Filings” (SERFF) System; or
(b) a
filing submitted via the Internet by using the Sircon system; or
(c) a
filing submitted via an email system.
(6)
"Eligible group" means a group that meets the definitions in Sections
31A-22-502 through 31A-22-508.
(7)
"Endorsement" means a written agreement attached to an annuity contract that
alters a provision of the contract, for example, a name change endorsement
and a tax qualification endorsement.
(8)
"File and Use" means a filing can be used, sold, or offered for sale after
it has been filed with the department.
(9)
"Filer" means a person or entity that submits a filing.
(10)
"Filing," when used as a noun, means an item required to be filed with the
department including:
(a) a
contract;
(b) a form;
(c) a
document;
(d) an
application;
(e) a report;
(f) a
certificate;
(g) an
endorsement;
(h) a rider;
and
(i) an
actuarial memorandum, demonstration, and certification.
(11)
“Filing Objection Letter” means a letter issued by the commissioner when a
review has determined the filing fails to comply with Utah law and rules.
The filing objection letter, in addition to requiring correction to
non-compliant items, may request clarification or additional information
pertaining to the filing.
(12)
"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.
(13)
"Issue Ages" means the range of minimum and maximum ages for which a
contract or certificate will be issued.
(14)
"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.
(15)
"Market type" means the type of contract that indicates the targeted market
such as individual or group.
(16)
"Order to Prohibit Use" means an order issued by the commissioner that prohibits the use of a filing.
(17)
"Rejected" means a filing is:
(a) not
submitted in accordance with applicable laws or rules;
(b) returned
to the insurer by the department with the reasons for rejection; and
(c) not
considered filed with the department.
(18)
"Rider" means a written agreement attached to an annuity contract or
certificate that adds a benefit, for example, a waiver of surrender charge,
a guaranteed minimum withdrawal benefit and a guaranteed minimum income
benefit.
(19) "Type of insurance" means a specific type of
annuity including, but not limited to, equity indexed annuity, single
premium immediate annuity, modified guaranteed annuity, deferred annuity, or
variable annuity.
(20) “Utah
Filed Date” means the date provide to a filer by the Utah Insurance
Department, that indicates a filing has been accepted pursuant to Subsection
7.
R590-227-5.
General Filing Information.
(1) Each filing submitted must be
accurate, consistent, complete and
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) Licensees
and filers are responsible for assuring that a filing is in
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 will be rejected and
returned to the filer. A rejected filing:
(a)
is not considered filed with the department;
(b) must
be submitted as a new filing; and
(c) will
not be reopened for purposes of resubmission.
(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) 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 not in compliance with Utah
laws and rules, A Filing Objection Letter or 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 insureds.
(6) Filing
Correction.
(a)
Filing corrections are considered informational.
(b)
Filing corrections must be submitted within 30 days of the date the original
filing was submitted to the department.
The filer must reference the original filing.
(c) A new filing is required if a filing correction
is made more than 30 days after the date original filing
was submitted to department. The filer must reference the original
filing.
(7) If responding to a Filing
Objection Letter or an Order to Prohibit Use, refer to R590-227-12
for instructions.
(8)
Filing withdrawal. A filer must notify the department when withdrawing a
previously filed form, rate, or supplementary information.
R590-227-6.
Filing Submission Requirements.
(1) All
filings must be submitted as an electronic filing.
(2) A
filings must
be submitted by market type and type of insurance.
(3)
A filing may not include more
than one type of insurance, or request filing for more than one insurer.
(4) SERFF Filings.
(a) Filing Description. Do not submit a cover letter. On the general
information tab, complete the Filing Description section with the following
information, presented in the order shown below.
(i) Provide a description of the filing.
(ii) Indicate if the filing:
(A) is new;
(B) is replacing or modifying a previous submission; if so, describe the
changes made, if previously rejected the reasons for rejection, and the
previous filing’s Utah Filed Date;
(C) includes forms for informational purposes; if so, provide the Utah
Filed Date; or
(D) does not include the base policy; if so, provide the Utah Filed Date of
the base policy and describe the effect on the base policy.
(iii) Identify if any of the provisions are unusual, controversial, or have
been previously objected to, or prohibited,
and explain why the provision is included in the filing.
(iv) Explain any change in benefits or premiums that may occur while the
contract is in force.
(v) List the issue ages, which means the range of minimum and maximum ages
for which a policy will be issued.
(vi) List the minimum initial premium.
(vii) Identify the intended market for the filing, such as senior citizens,
nonprofit organizations, association members, corporate owned, bank owned,
etc.
(b) Certification. The filer must
certify that a filing has been properly completed AND is in compliance with
Utah laws and rules. The “Utah Annuity Filing Certification” must be
properly completed, signed, and attached to the supporting documentation
tab. A false certification may subject the licensee or filer to
administrative action.
(c) Domiciliary Approval and Filing Status Information. All filings for a
foreign insurer must include on the supporting documentation tab:
(i) copy of domicile approval for the exact same filing;
(ii) filing status information which includes:
(A) a list of the states to which the filing was submitted;
(B) the date submitted; and
(C) summary of the states' actions and their responses; or
(iii) if the filing is specific to Utah and only filed in Utah, then state,
"UTAH SPECIFIC - NOT SUBMITTED TO ANY OTHER STATE."
(d) Group Questionnaire or Discretionary Group Authorization Letter. A
group filing must attach to the supporting documentation tab either a:
(i) signed and fully completed “Utah Life and Annuity Group Questionnaire”;
or
(ii) copy of the Utah Life and Annuity Discretionary Group Authorization
letter.
(e) Letter of Authorization.
(i) When the filer is not the insurer, a letter of authorization from the
insurer must be attached to the
supplementary documentation tab.
(ii) The insurer remains responsible for the filing being in compliance
with Utah laws and rules.
(f) 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 refilled.
(g) Annuity Report. All annuity filings must include a sample annuity
annual report.
(h) Items being submitted for filing.
(i) Any forms must be attached to the form schedule tab.
(ii) Any rating
documentation, including actuarial memorandums and rate schedules, must be
attached to the rate/rule schedule.
(iii)
Actuarial Memorandum, Demonstration, and Certification of Compliance. An
actuarial memorandum, demonstration of compliance, and a certification of
compliance are required in individual and group life insurance 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.
(5) Sircon Filings.
(a) Transmittal. The "NAIC Life, Accident and Health,
Annuity, Credit Transmittal Document," as provided in R590-227-3,
must be properly completed.
(i) Complete the
transmittal by using the following:
(A) NAIC
Life, Accident and Health, Annuity, Credit Transmittal Document
(Instruction); and
(B)
NAIC Uniform Life, Accident and Health, Annuity and Credit Coding Matrix.
(ii) Do not submit the documents described in Section (a)(i)(A)
and (B) with the filing.
(b) Filing Description. Do not submit a cover letter. In Section
15 of the transmittal, complete the Filing Description with the following
information presented in the order shown below.
(i) Provide a description of the
filing.
(ii)
Indicate if the filing:
(A) is
new;
(B) is
replacing or modifying a previous submission[,]; if so, describe
the changes made, if previously rejected the reasons for rejection, and the
previous filing’s Utah Filed Date;
(C)
includes forms for informational
purposes; if so, provide the Utah Filed
Date; or
(D) does not include the
base policy; if so, provide the Utah Filed Date of the base policy and
and describe the effect on the base policy.
(iii)
Identify if any of the provisions are unusual, controversial, or have been
previously objected to, or prohibited, and explain why the provision is
included in the filing.
(iv)
Explain any change in benefits or premiums that may occur while the contract
is in force.
(v) List
the issue Ages, which means the range of minimum and maximum ages for which
a policy will be issued. (vi) List
the minimum initial premium.
(vii)
Identify the intended market for the filing, such as senior citizens,
nonprofit organizations, association members, corporate owned, bank owned,
etc.
(c)
Certification. The filer must certify that a filing has been properly
completed AND is in compliance with Utah laws and rules. the "Utah Annuity Filing Certification" must be
properly completed and signed. A false certification may subject the licensee or filer to
administrative action.
(d)
Domiciliary Approval and Filing Status Information. All filings for a
foreign insurer must include:
(i) a copy
of domicile approval for the exact same filing;
(ii) a
filing status information which includes:
(A) a list
of the states to which the filing was submitted;
(B) the
date submitted; and
(C)
summary of the states’ actions and their responses; or
(iii) 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.”
(e)
Group Questionnaire or Discretionary Group Authorization Letter. All group
filings must attach
either a:
(i)
signed and fully completed
"Utah Life and Annuity Group Questionnaire;" or
(ii) copy of the "Utah Life and Annuity
Discretionary Group Authorization letter".
(f)
Letter of Authorization.
(i) When
the filer is not the insurer, a letter of authorization from the insurer
must be included.
(ii) The insurer remains responsible for the filing being in compliance
with Utah laws and rules.
(g)
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.
(h)
Items being submitted for filing. Any form items submitted for filing
must be attached to the product forms tab.
(i)
Annuity Report. All annuity filings must include a sample annuity annual
report.
(j)
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:
(i)
description of the coverage in detail;
(ii)
demonstration of compliance with applicable nonforfeiture and valuation
laws; and
(iii)
a certification of compliance with Utah law.
(6) Refer
to each applicable Section of this rule for additional procedures on how to
submit forms and reports.
R590-227-7.
Procedures for Filings.
(1) Forms in
General.
(a) Forms are
"File and Use" filings.
(b) Each form
must be identified by a unique form number. The form number
may not be variable.
(c) Contain a descriptive title on the cover page.
(d) Forms must
be in final printed form or printer's proof format. Drafts may not be
submitted.
(e)
Specific sections may be filed with variable data by placing brackets around
affected information. Variable data must be identified within the specific
section, or on a separate sheet included with the submission.
(f) Blank
spaces within 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 market, the form must be completed
with data representative of senior annuitants.
(ii) All John
Doe data in the forms including the data page must be accurate and
consistent with the actuarial memorandum, the application, and any marketing
materials, as applicable.
(2) Application Filing.
(a) Each application or
enrollment form may be submitted as a separate filing or may be filed with
its related policy or certificate filing.
(b) 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.
[(2)](3)
Contract Filings.
(a) Each type
of annuity must be filed separately.
(b) A contract filing consists of one
contract form, including its
related forms, such as an application, data page, rider or
endorsement, and an actuarial memorandum.
(c)
A data page must be included with every contract filing.
(d) Only one contract form for a single type of
insurance may be filed.
(e)
A data page that changes the basic feature of the contract may not be filed
without including the entire contract form in the filing. Separate data
page filings without the contract form will be rejected as incomplete.
(4)
Rider or Endorsement Filings.
(a) Related
riders or endorsements may be filed together.
(b) A single rider or endorsement that affects
multiple forms may be
filed if the Filing Description references all affected forms.
(c) 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".
(d) The filing
must include:
(i) a listing of all base contract form numbers,
title and Utah Filed Dates; and
(ii) a
description of how each filed rider or endorsement affects the base
contract.
(iii) a sample
data page with data for the submitted form.
(e)
Unrelated endorsements may not be filed together.
R590-227-8.
Additional Procedures for Fixed Annuity Filings.
(1) Insurers
filing annuity 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;"
Section 31A-22
Part IV, "Life Insurance and Annuities;"
(c) R590-93,
"Replacement of Life Insurance and Annuities;"
(d) R590-96,
"Annuity Mortality Tables;" and
(e) R590-191,
"Unfair Life Insurance Claims Settlement Practice."
(2) Every
filing of an individual annuity contract, rider or endorsement providing
benefits, and every group annuity filing including certificates that are
marketed individually, shall include an actuarial memorandum, a
demonstration, and a certification of compliance with nonforfeiture and
valuation laws:
(a) Section
31A-22-409, "Standard Nonforfeiture Law for Deferred Annuities;" and
(b) Section
31A-17 Part V, "Standard Valuation Law."
(3) When
submitting annuity filings the filing description of the transmittal must:
(a) identify
the specific subsection of the Utah nonforfeiture law, which applies to the
submitted annuity;
(b) describe
the basic features of the form submitted;
(c) identify
and describe the interest earning features; including the guaranteed
interest rate, the guaranteed interest terms, and any market value
adjustment feature;
(d) describe
the guaranteed and nonguaranteed values including any bonuses;
(e) describe
all charges, fees and loads;
(f) list and
describe all accounts, options and strategies, if any;
(g) identify
whether the accounts are fixed interest general accounts, registered
separate accounts including modified guaranteed separate accounts; and
(h) describe
any restrictions or limitations regarding withdrawals, surrenders, and the
maturity date or settlement options.
(4) The
contract must be complete with a sample specification page attached.
(5) The
actuarial memorandum must:
(a) be
currently dated and signed by the actuary;
(b) identify
the specific subsections of the Utah nonforfeiture law which applies to the
submitted annuity;
(c) describe
all contract provisions in detail, including all guaranteed and
non-guaranteed elements, that may affect the values;
(d) identify
the guaranteed minimum interest crediting rates;
(e) describe
in detail the particular methods of crediting interest, including:
(i) guaranteed
fixed interest rates; and
(ii)
guaranteed interest terms.
(f)
specifically identify, describe and list all charges and fees, including
loads, surrender charges, market value djustments or any other adjustment
feature;
(g) describe
in detail all accounts and factors that are used to calculate guaranteed
minimum nonforfeiture values and minimum cash surrender values in the
contract and the elements used in the calculation of the minimum values
required by the law; and
(h) include
the formulas used to calculate the minimum guaranteed values provided by the
contract and the formulas used to calculate the minimum guaranteed values
required by the applicable subsections of the nonforfeiture law.
(6) The
actuarial demonstration must:
(a) compare
minimum contract values with minimum nonforfeiture values;
(b) be based
on representative premium patterns, for flexible premium products use both a
single premium and level premium payment, and for both age 35 and age 60 or
the highest issue age if lower;
(c)
numerically demonstrate that the values based on the guaranteed minimum
interest rates, the maximum surrender charges, fees, loads, and any other
factors affecting values, provide values that are in compliance with the
Standard Nonforfeiture Law using both the retrospective and the prospective
tests, each test must be clearly identified, and include the following:
(i) For the
retrospective test, describe the net consideration and the interest rates
used in the accumulation. Numerically compare the guaranteed contract
values with the minimum values required by the nonforfeiture law.
(ii) For the
prospective test, identify the maturity value and the interest rate used for
each respective year to determine the present value. Numerically compare
the guaranteed contract values with the minimum values required by the
nonforfeiture law.
(7) The
actuarial certification of compliance must be currently dated and signed by
the actuary. The certification must state that the formulas used and values
provided are in compliance with Utah laws and rules.
R590-227-9.
Additional Procedures for Group Annuity Filings.
(1) Insurers
submitting group annuity 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;" and
(d) R590-191, "Unfair Life Insurance Claims Settlement
Practice."
(2) A group
contract must be included with each certificate filing along with the master
application and enrollment form.
(3) Every group annuity filing must include an actuarial memorandum
describing the features of the contract and certifying compliance with
applicable Utah laws. A group filing that includes a group certificate that
is marketed to individuals, must include an actuarial memorandum,
demonstration and certification of compliance with the applicable Utah
nonforfeiture law.
(4) Eligible Groups. 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
Sections 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.
(5) 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 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.
R590-227-10.
Additional Procedures for Variable Annuity Filings Procedures.
(1) Insurers submitting variable annuity filings are advised to review
the following code sections and rule prior to submitting a filing:
(a) Section 31A-22-411, "Contracts Providing Variable Benefits;" and
(b) R590-133, "Variable Contracts."
(2) A variable annuity contract must have been previously approved or
accepted by the insurer's state of domicile before it is submitted for
filing in Utah. Include the approval date in the submission.
(3) Information regarding the status of the filing of the variable
annuity with the Securities and Exchange Commission must be included in the
filing.
(4) The transmittal description and the actuarial memorandum must:
(a) describe the accounts available in the contract; and
(b) identify and describe those accounts that are separate accounts,
including modified guaranteed annuities, and those accounts that are general
accounts.
(5) The actuarial memorandum must describe all contract provisions in
detail, including all guaranteed and non-guaranteed elements that may affect
the values.
(6) The actuarial demonstration must numerically demonstrate compliance
with the applicable nonforfeiture laws:
(a) for variable annuities, including modified guaranteed annuities,
pursuant to Section 31A-22-411;
(b) for fixed interest general accounts pursuant to 31A-22-409,
identify and describe all guaranteed factors that affect values, including:
(i) the guaranteed minimum interest rate; and
(ii) the maximum surrender charges and loads.
(7) An actuarial certification of compliance with applicable Utah laws
and rules must be included in the filing.
(8) A filing for a rider that provides benefits, such as guaranteed
minimum death benefit and guaranteed minimum withdrawal benefit, must
include an actuarial memorandum.
(9) A prospectus is not required to be filed.
R590-227-11.
Correspondence and Status Checks.
(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;
(d) submission method, SERFF or Sircon; and
(e) tracking number.
(2) Status Checks. A complete filing is usually processed
withing 45 days of receipt. A filers may request the status of its filing by telephone, or email 60 days
after the date of submission.
R590-227-12. Responses.
(1) Response to a Filing Objection Letter. A response to a
Filing Objection Letter must include:
(a) a cover letter identifying all changes made;
(b) revised documents with all changes highlighted; and
(c) revised documents incorporating all changes without highlights.
(2) Response to an Order to Prohibit Use.
(a) An Order to Prohibit Use becomes final 15 days after the date of
the Order.
(b) Use of the filing must be discontinued not later than the
date specified in the Order.
(c) To contest an Order to Prohibit Use, the commissioner must receive
a written request for a hearing not later than 15 days after the date of the
Order.
(d) A new filing is required if the company chooses to make the
requested change addressed in the Filing Objection Letter. The new filing
must reference the previously prohibited filing.
R590-227-13.
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.
R590-227-14.
Enforcement Date.
The commissioner will begin enforcing the revised provisions of this
rule upon the effective date of this.
R590-227-15.
Severability.
If any provision of this rule or the application of it to any person or
circumstance is for any reason held to be invalid, the remainder of the rule
and the application of the provision to other persons or circumstances may
not be affected by it.
KEY: annuity
insurance filings
Date of Enactment or Last Substantive Amendment: 2007
Authorizing, and Implemented or Interpreted Law: 31A-2-201;
31A-2-201.1; 31A-2-202
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