| Contact Person: | Illinois Department of Insurance | 320 West Washington Street | ||
| Cindy Colonius | Review Requirements Checklist | Springfield, IL 62767-0001 | ||
| 217-782-4572 | ||||
| Cindy.Colonius@Illinois.gov |
Effective 5/01/08 |
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| Line(s) of | Line(s) of | |||
| Business | Insurance | |||
Individual Variable Annuities |
Individual Variable Annuities Policies (without fixed account) |
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| Click here for interactive version of this document to be down loaded and submitted with this filing | Word Document - Alteration of this document will result in rejection of the filing |
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| Illinois Insurance Code Link | Illinois Compiled Statutes Online | |||
| Illinois Administrative Code Link | Administrative Regulations Online | |||
| Product Coding Matrix | Product Coding Matrix | |||
| REVIEW REQUIREMENTS | REFERENCE |
DESCRIPTION OF REVIEWSTANDARDS REQUIREMENTS |
LOCATION OF STANDARD IN FILING |
| 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. | |||
| FORM FILING REQUIREMENTS | REFERENCE | DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS | LOCATION OF STANDARD IN FILING |
| Uniform Transmittal Document (Etrans) | 50 IL Adm. Code 916 | Form filings must now be submitted either by SERFF or CD-ROM. Please visit
the Department's web site for the Universal Transmittal Document (Etrans)
by clicking this link. Scroll down to "Universal Transmittal Document Software (Etrans)" |
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| 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. |
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| Cover Letter and Letter of Submission | 50 IL Adm. Code 1405.20 (e) |
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). |
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| Annuity Filing Checklist | 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. |
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| GENERAL REQUIREMENTS FOR ALL FILINGS | REFERENCE | DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS | |
| Standard Provisions for Variable Annuities | 215 ILCS 5/226 (excluding subparagraphs
(1)(a), (1)(f), (1)(g), and (3)) 215 ILCS 5/245.25 50 IL Adm. Code 1451.60 |
The requirements of 215 ILCS 5/226 apply to all individual annuities fixed 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. |
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| 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. |
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| Free Look | 215 ILCS 5/226(1)(h) | The policy must contain a 10-day free look provision. | |
| Grace Period | 215 ILCS 5/245.25 50 IL Adm. Code 1451.60 b) 1) |
The annuitant is entitled to a grace period of 30 days if the contract requires periodic stipulated payments. | |
| 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. | |
| Reinstatement | 215 ILCS 5/245.25 50 IL Adm. Code 1451.60 b) 2) |
There must be a provision that at any time within one year from the date of default, the contract may be reinstated (unless the cash surrender value has been paid) upon payment of overdue payments and any indebtedness plus interest to the insurer. The contract may contain a statement of the basis for determining the date used to calculate the overdue payments. |
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| Appropriate Descriptive Title | 215 ILCS 5/143(1) | There must be an appropriate, unambiguous title describing the form of the policy. | |
| ADMINISTRATIVE CODE PROVISIONS | |||
| 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. | |
| Disclosure of Premium | 50 IL Adm. Code 1451.50 b) c) | Contracts providing both a fixed and variable benefit must indicate the premium charged for each component separately in the contract and must disclose that information to prospective annuitants prior to the time of the sale. | |
| Certification Requirement | 50 IL Adm. Code 1451.50 d) | Insurers filing variable contracts must include a certification, signed by a company officer, stating that it will not sell the product subsequent to the Department's approval unless the Securities and Exchange Commission has provided an effective date for any securities registration required by federal law. | |
| Illustrations | 50 IL Adm. Code 1451.60 a) | Illustrations of benefits payable may not project past investment experience into the future or attempt to predict future investment experience. | |
| Options Available in Event of Default | 50 IL Adm. Code 1451.60 b) 3) | There must be a provision specifying the options available in the event of a default of a periodic premium payment. | |
| Investment Increment Factors | 50 IL Adm. Code 1451.60 d) | Variable contracts must clearly state the investment increment factors used in computing the dollar amount of variable benefits or other variable contractual payments or values. | |
| Annual Report | 50 IL Adm. Code 1451.70 a) b) | The insurer must provide, after the first contract year, an annual report that provides the annuitant with the number of shares and their dollar value, or the total value of the account. | |
| GENERAL INFORMATION | |||
| HIV/AIDS Questions on Application | 215 ILCS 5/143(1) | Questions designed to elicit information regarding AIDS, ARC and HIV must be specifically related to the testing, diagnosis or treatment done by a physician or an appropriately licensed clinical professional acting within the scope of his/her license. |
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| 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. |
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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. |
50 IL Adm. Code 1451.30 a) | Before an insurer issues variable contracts in this state it must first submit a general description of the kinds of variable contracts it intends to issue. The filing should be directed to the LAH unit. | |
| Reserve Liability | 50 IL Adm. Code 1451.60 f) | The reserve liability must be established according to 215 ILCS 5/223. | |
| 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. |