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Last Changes Made Shown Below -
R590. Insurance,
Administration.
R590-227. Submission of Annuity Filings. (Effective 9-7-06)
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 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 at
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 Annuity Filing Certification," dated June 2006.
(f) "Utah Life and Annuity Group Questionnaire," dated June
2006.
(g) "Utah Life and Annuity Request for Discretionary Group
Authorization," dated June 2006.
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) ["Alternate information" means:
(a) a
list of the states to which the forms have been filed, with any state actions;
(b)
the reason for not submitting the form to the domicile state; and
(c)
identifying any points of conflict between the form and domicile state laws or
rules.
(2)
([3]2)
"Contract" means the annuity policy including attached endorsements and riders;
([4]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.
([5]4)
"Discretionary group" means a group that has been specifically authorized by the
commissioner under Section 31A-22-509.
([6]5)
"Eligible group" means a group that meets the definitions in Sections 31A-22-502
through 31A-22-508.
([7]6)
"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]7)
"File and Use" means a filing can be used, sold, or offered for sale after it
has been filed with the department.
([9]8)
"Filer" means a person or entity that submits a filing.
([10]9)
"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.
(10)
"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.
(11) "Issue
Ages" means the range of minimum and maximum ages for which a contract or
certificate will be issued.
(12) "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.
(13) "Market
type" means the type of contract that indicates the targeted market such as
individual or group.
(14) "Order
to Prohibit Use" means an order issued by the commissioner that forbids the use
of a filing.
(15)
"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.
(16) "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.
(17) "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. Refer to the NAIC Coding Matrix.
R590-227-5. 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[s] to a misspelled word[s] and punctuation in a
filing. The filing will be considered an informational filing.
(b) No transmittal is required when a clerical
correction[s are]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 [over letter]transmittal.
(c) A new filing is required if [the]a clerical
correction[s are]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 [cover letter]transmittal.
(7) [Revised forms. A form that is revised from a previously
filed form is considered a new form and must be filed. The filer will need to
reference the original filing and explain the changes to the form.
(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.
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.
R590-227-7. 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 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.
(iii) When submitting a rider or endorsement, include a sample
data page that includes the rider or endorsement information.
(iv) Forms may include variable data. All variable data must
be identified within the brackets or a statement of variability must be included
with the submission.
(2) Contract Filings.
(a) Each type of annuity must be filed separately. A contract
filing consists of one contract form for a single type of insurance including
its related forms, an application, data page, rider or endorsement, and an
actuarial memorandum.
(b) A data page must be included with every contract filing.
(c) Only one contract form for a single type of insurance may
be submitted.
(d) 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.
(3) Rider or Endorsement Filings.
(a) Related riders or endorsements may be filed together as a
single filing.
(b) A single rider or endorsement that affects multiple related
forms must reference all affected contract 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
dates filed with the Utah Insurance Department.
(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.
(4) Application Filings. Each application or enrollment form
may be submitted as a separate filing or may be filed with its related contract
or certificate filing. If an application has been previously filed or is filed
separately, an informational copy of the application must be included with a
contract or certificate filing.
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 adjustments 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. Electronic Filings.
Filers submitting electronic filings must follow the
requirements for both the electronic system and this rule, as applicable.
R590-227-12. Correspondence, Inquiries, 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.
R590-227-13. 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 [June 1, 2006]upon the effective date of this.
KEY: annuity 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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