Sec.38a-433-24. Authority of insurers

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

(a) Licensing and Approval to do Business.

(1) No company shall deliver or issue for delivery Modified Guaranteed Life Insurance within this state unless it is licensed 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 conduct such business.

(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 life insurance within this state it shall submit to the Commissioner a general description of the kinds of such life insurance 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 life insurance; and if requested by the Commissioner, biographical data with respect to officers and directors of the company on the NAIC uniform biographical data forms.

(b) Use of Sales Materials. An insurer authorized to transact Modified Guaranteed Life Insurance 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 Life Insurance business in this state which is false, misleading, deceptive or inaccurate.

Illustrations of benefits payable under any Modified Guaranteed Life Insurance 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 if it is made clear that such assumed rates are hypothetical only.

Before any insurer shall deliver or issue for delivery any Modified Guaranteed Life Insurance Policy 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 Life Insurance Policy. 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 to Commissioner. Any insurer authorized to transact the business of Modified Guaranteed Life Insurance in this state shall submit to the Commissioner: (1) a separate account annual statement which shall include the business of its Modified Guaranteed Life Insurance; and (2) such additional information concerning its Modified Guaranteed Life Insurance 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)