Sec.38a-459-13. Contract provisions and filing requirements

(a) A contract may not be delivered or issued for delivery in this state unless the contract satisfies the following requirements. The contract shall provide:

(1) A description of any contractual safeguards that ensure asset sufficiency, including termination events, discontinuance triggers, or discontinuance options and corrective action procedures;

(2) A description of how charges under the contract are computed, including, but not limited to, risk or surrender charges; and

(3) For a book value contract, a description of how any market value adjustments under the contract are computed.

(b) An insurance company satisfies the filing and approval requirements with respect to a contract if the insurance company has filed the form of the contract with the insurance commissioner, it is accompanied by the items contained within subdivisions (1) to (3), inclusive, of this subsection, and the form of contract has been approved or has not been disapproved within a thirty-day period following the date of filing, in which event the form of contract shall be deemed approved. Notwithstanding the provisions of this section, the requirement for filing and approval of the form of contract may be waived at the discretion of the insurance commissioner.

(1) The form of the contract filed for approval shall be accompanied by a statement that the contract meets the conditions of subsection (a) of this section.

(2) The form of contract filed for approval shall be accompanied by a statement:

(A) Specifying the range of variation of variable contract provisions, if any, that could have a material effect on the risk assumed by the insurance company under the contract, including withdrawal methodology, crediting rate formula, and termination events; and

(B) A statement listing events, if any, that give the insurance company the right to terminate the contract immediately.

(3) (A) If the plan of operations pertaining to the class of contracts to which the contract belongs has been affirmatively approved by the insurance commissioner of the state in which the issuing insurance company is domiciled, the form of a contract filed for approval shall be accompanied by a statement indicating the receipt of approval and that the approval was an affirmative approval; or

(B) If the plan of operations pertaining to the class of contracts to which the contract belongs has been deemed approved in the state in which the issuing insurance company is domiciled, the form of contract filed for approval shall be accompanied by a statement indicating that the issuing insurance company has met the requirements for deemed approval; or

(C) If the plan of operations pertaining to the class of contracts to which the contract belongs has not been approved in the state in which the issuing insurance company is domiciled, the form of contract filed for approval shall be accompanied by a statement of this fact, together with a plan of operations pertaining to the contract.

(Adopted effective June 1, 2002; Amended December 8, 2017)