DOI Bruce Rauner Governor Anne Melissa Dowling, Acting Director

Review Requirements Checklist

Individual Immediate Annuities

Contact: Cindy Colonius

Illinois Department of Insurance
320 West Washington Street
Springfield, IL 62767-0001
217-782-4572

Effective 6/05/14

Line(s) of Insurance: Individual Immediate Annuities Policies

Interactive Version of this document to be downloaded and submitted with this filing. Alteration of this document will result in rejection of the filing.

Links:

Each filing must include a completed Review Requirements Checklist that must contain a completed “Location of Standard in Filing” column for each required element of the filing. Please indicate the proper page # and form # for each entry.

FORM FILING REQUIREMENTS REFERENCE DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS

NOTE: These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance.
LOCATION OF STANDARD IN FILING
Review Requirements Checklist Go to Review Requirements Checklists on DOI web site. See next column

Each filing must include a completed Review Requirements Checklist that must contain a completed “Location of Standard in Filing” column for each required element of the filing. Please indicate the proper page # and form # for each entry.

 
Cover Letter and Letter of Submission 50 IL Adm. Code 1405.20 (e)
50 IL Adm. Code 2001.30 (a) (3)
50 IL Adm. Code 916.40 (b)

In addition to referencing any previously approved form number(s) as required by 50 IL Adm. Code 1405.20(e), those references must also include the filing number and SERFF tracking number (if applicable and available) for the referenced forms.

Letters of submission must generally describe the intent and use of the form being filed and, if applicable, how it will be used with any previously approved form(s).
 
Annuity Filing Checklist 215 ILCS 5/229.4a
215 ILCS 5/143(1)

Each filing must also include an Annuity Filing Checklist that must be completed and signed by the insurer's actuary. This checklist may be found by clicking this link.

 
GENERAL REQUIREMENTS FOR ALL FILINGS REFERENCE DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS

NOTE: These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance.
LOCATION OF STANDARD IN FILING
Standard Provisions for Annuities 215 ILCS 5/226
215 ILCS 5/226(1)
The requirements of 215 ILCS 5/226 apply to all individual annuity flexible premium contracts except reversionary and survivorship annuities and annuities contracted by an employer on behalf of his/her employees.  
Entire Contract 215 ILCS 5/226 (1)(c) The policy together with an endorsed application attached to the policy shall constitute the entire contract between the parties.  
Incontestable Period 215 ILCS 5/226 (1)(b)

A policy is incontestable from the date of issue unless it includes an application asking health questions.

 
Misstatement of Age 215 ILCS 5/226 (1)(d), (2)

If a misstatement of age is found, the policy shall provide the amount payable under the contract as the stipulated payments to the insurer would have purchased at the correct age or ages.

Adjustments may be made for overpayments.

 
Free Look 215 ILCS 5/226 (1)(h) The policy must contain a 10-day free look provision.  
Participating Contracts 215 ILCS 5/226 (1)(e) If the contract is a participating contract there must be a provision explaining that the divisible surplus shall be apportioned annually and dividends shall be payable in cash or be applied to any stipulated payment or payments to the insurer as provided.  
Issue Requirement 215 ILCS 5/226.1 The policy must be issued to an individual. It may not be issued to fund a bond.  
Appropriate Descriptive Title 215 ILCS 5/143(1) There must be an appropriate, unambiguous title describing the form of the policy.  
6 Month Deferral 215 ILCS 5/229.4a(3)(A)(ii) The contract must contain a provision that payment of cash surrenders may be delayed for a period not to exceed 6 months based upon a written request and approval from the Director.  
ADMINISTRATIVE CODE PROVISIONS REFERENCE DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS

NOTE: These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance.
LOCATION OF STANDARD IN FILING
Name and Address Required 50 IL Adm. Code 1405.20 c) 1) 2) The insurer name and home office address is required on the front and back page of the policy.  
Schedule Page Requirements 50 IL Adm. Code 1405.20 d) 3) The schedule page must be completed in "John Doe" fashion.  
Suitability 50 IL. Adm. Code 3120

An insurance producer or the insurer, when no producer is involved must comply with the requirements set forth in this regulation, which includes but not limited to, establishing procedures such as a questionnaire requesting information from the applicant that is reasonably appropriate to determine the suitability of a recommendation.

 
GENERAL INFORMATION REFERENCE DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS

NOTE: These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance.
LOCATION OF STANDARD IN FILING
No Discrimination on Lawful Travel 215 ILCS 5/236(e) No life company may discriminate in its underwriting or rating practices based on an insured's past lawful travel experiences.  
DEPARTMENT POSITIONS REFERENCE DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS

NOTE: These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance.
LOCATION OF STANDARD IN FILING
Replacement Question 50 IL. Adm. Code 917.50 The application for an individual contract, unless exempted by 50 IL Adm. Code 917.50, must contain a replacement question designed to elicit information concerning whether the policy will replace any existing annuity contract.  
Lifetime Settlement Options 215 ILCS 5/226.1
215 ILCS 5/143(1)

Lifetime settlement options are required. The only exception is contracts issued without life contingencies pursuant to 215 ILCS 5/226.1.

The application may reflect the option if the policy does not.