Sec.38a-433-14. Authority of insurers

The following requirements are applicable to all insurers either seeking authority to issue Modified Guaranteed Annuities in this state or having authority to issue Modified Guaranteed Annuities in this state.

(a) Licensing and Approval to do Business.

(1) No company shall deliver or issue for delivery Modified Guaranteed Annuities within this state unless it is licensed or organized to do a life insurance or annuity business in this state, and the Commissioner is satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this state. In this connection, the Commissioner shall consider among other things the history and financial condition of the company; the character, responsibility and fitness of the officers and directors of the company; and the law and regulation under which the company is authorized in the state of domicile to issue such annuities.

(2) If the company is a subsidiary of an admitted life insurance company, or affiliated with such company by common management or ownership, it may be deemed by the Commissioner to have satisfied the provision of subdivision (1) of this subsection if either it or such admitted life company satisfies the aforementioned provisions; provided, further, that companies licensed and having a satisfactory record of doing business in this state for a period of at least three years may be deemed to have satisfied the Commissioner with respect to subdivision (1) of this subsection.

(3) Before any company shall deliver or issue for delivery such annuities within this state it shall submit to the Commissioner a general description of the kinds of such annuities it intends to issue; if requested by the Commissioner, a copy of the statutes and regulations of its state of domicile under which it is authorized to issue such annuities; and if requested by the Commissioner, biographical data with respect to officers and directors of the company on the National Association of Insurance Commissioners uniform biographical data forms.

(b) Use of Sales Materials. An insurer authorized to transact Modified Guaranteed Annuity business in this state shall not use any sales material, advertising material, or descriptive literature or other materials of any kind in connection with its Modified Guaranteed Annuity business in this state which is false, misleading, deceptive, or inaccurate.

Illustrations of benefits payable under any Modified Guaranteed Annuity shall not include projections of past investment experience into the future or attempted predictions of future investment experience; provided, that hypothetical assumed interest credits may be used to illustrate possible levels of benefits.

Before any insurer shall deliver or issue for delivery any Modified Guaranteed Annuity contract in this state, the Commissioner may require the filing of a copy of any prospectus or other sales material to be used in connection with the marketing of that insurer's Modified Guaranteed Annuity contract. The sales material must clearly illustrate that there can be both upward and downward adjustments due to the application of the market value adjustment formula in determining nonforfeiture benefits.

(c) Reports. Any insurer authorized to transact the business of Modified Guaranteed Annuities in this state shall submit to the Commissioner:

(1) a separate account annual statement which shall include the business of its Modified Guaranteed Annuities; and

(2) such additional information concerning its Modified Guaranteed Annuity operations or separate accounts as the Commissioner shall deem necessary.

(d) Authority of Commissioner to Disapprove. Any material required to be filed with and approved by the Commissioner shall be subject to disapproval if at any time it is found by the Commissioner not to comply with the standards established by this regulation.

(Effective September 25, 1992)