Illinois Administrative Code

Section 1305.30 Prior Notification of Dividends and Other Distributions a) Notice 1) Any domestic captive insurance company required by Section 123C-26 of the Code to notify the Director of a dividend or other distribution to holders of an equity interest in the captive insurance…

Section 1305.40 Penalties Failure of a domestic captive insurance company to timely file the report required by this Part or Section 123C-26 of the Code or to issue dividends or other distributions without the approval of the Director shall subject the domestic captive insurance …

Section 1402.10 Military Exclusion Risk of death may be excluded: a) As a result of war or act of war, if the cause of death occurs while the insured is serving in the military, naval or air forces of any country, combination of countries or international organization, provided s…

Section 1402.20 Non-Combatant Civilian Exclusion Risk of death may be excluded: a) As a result of war or an act of war while the insured is serving in any civilian non-combatant unit serving with such forces, provided such death occurs while in such units or within six (6) months…

Section 1402.30 Civilian Exclusion Risk of death may be excluded as a result of war on an act of war, within two (2) years from the date of issue of the policy, while the insured is not in such forces or units, if the cause of death occurs while the insured is outside the home ar…

Section 1402.5 Introduction Life insurance policy forms may contain war clauses substantially complying with the recommendations contained in the report, dated December 3, 1951, of the special Sub-Committee of the Life Committee of the National Association of Insurance Commission…

Section 1404.10 Completion and Review of Valuation of Reserves The valuation of policies referred to in Section 223 of the Illinois Insurance Code will be completed in the companies' offices. Annually these valuations will be inspected, reviewed and test checked by the Actuarial …

Section 1405.10 Authority This Part is issued by the Director of the Department of Insurance (Director) pursuant to Section 401 of the Illinois Insurance Code, which empowers the Director to make reasonable rules and regulations as may be necessary for making effective the insura…

Section 1405.15 Definitions Code means the Illinois Insurance Code [215 ILCS 5]. Department means the Department of Insurance. Director means the Director of the Department of Insurance. (Source: Added at 34 Ill. Reg. 5835, effective April 7, 2010)

Section 1405.20 Illinois Guidelines for Filing and Approval of Life and Annuity Forms Following are some general requirements that should be helpful to industry personnel involved in drafting and filing policy forms. a) Policy Forms 1) "Policy Form" Defined. The term "policy form…

Section 1405.30 Applications a) General 1) The application for a policy shall contain spaces for the name and signature of the producer or other licensee who solicited and wrote the application, pursuant to Section 500-155 of the Code. 2) The size of the type in the declaration p…

Section 1405.40 Policy Forms a) Payment of Premiums 1) Advance Premium Deposits – A fund or account for payment of unspecified premiums (whether by policy or by rider) must conform to the requirements of Section 240 of the Code. 2) Grace Period – Policy must provide for continuan…

Section 1405.50 Group Insurance a) Group Insurance is defined in Section 230.1 of the Code. Standard Provisions for Group Policies are cited in Section 231.1 of the Code. b) Group Insurance Contributory or Non-Contributory The policy shall state whether it is either contributory …

Section 1405.60 Franchise Life Insurance Franchise (or Wholesale) Life Insurance is a form of personal coverage issued under individual policies to a group under conditions which are similar to Group Insurance but which do not necessarily qualify under the Group Insurance definit…

Section 1405.70 Annuities a) Group Variable Annuities The applicable jurisdiction for group variable annuity contracts is the jurisdiction where the group master policy is delivered. b) Fixed Dollar or Flexible Premium Individual Annuity Contracts – Options to Purchase Additional…

Section 1405.80 Alternate and/or Insert Pages For "alternate" and/or "insert" pages, a company may use the following guideline: a) If the policy jacket or the outside covers are to be used with more than one plan of insurance, the form shall be submitted on this basis. The usual …

Section 1405.90 Substitution Filings A substitution filing of a new form for a previously approved form having the same form number must contain the following: a) The approval date of the original form and a statement that the original form was never used; and b) A red-lined vers…

Section 1406.10 Purpose The purpose of this Part is to provide standards for both individual and group life insurance policy illustrations that will protect consumers and foster consumer education. This Part provides illustration formats, prescribes standards to be followed when …

Section 1406.100 Annual Certifications a) The Board of Directors of each insurer shall appoint one or more illustration actuaries. b) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Pr…

Section 1406.110 Penalties In addition to any penalties authorized by the Illinois Insurance Code, an insurer or insurance producer who violates a requirement of this Part may be in violation of other State laws or regulations.

Section 1406.20 Applicability and Scope This Part applies to all individual and group life insurance policies and certificates issued after June 1, 1998, except: a) Variable life insurance; b) Individual and group annuity contracts; c) Credit life insurance; or d) Life insurance …

Section 1406.30 Definitions "Actuarial Standards Board" or "ASB" means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. "Contract Premium" means the gross premium that is required to be paid under a fixed premiu…

Section 1406.40 Policies to Be Illustrated a) Each insurer marketing policies pursuant to this Part shall notify the Director whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on June 1, 1998, the insurer shall g…

Section 1406.50 Standards for Basic Illustrations a) Format. A basic illustration shall conform with the following requirements: 1) The illustration shall be labeled with the date on which it was prepared. 2) Each page, including any explanatory notes or pages, shall be numbered …

Section 1406.60 Standards for Supplemental Illustrations a) A supplemental illustration may be provided so long as: 1) It is appended to, accompanied by or preceded by a basic illustration that complies with this Part; 2) The non-guaranteed elements shown are not more favorable t…

Section 1406.70 General Rules and Prohibitions a) An illustration used in the sale of an individual or group life insurance policy shall satisfy the applicable requirements of this Part, be clearly labeled "Life Insurance Illustration" and contain the following basic information:…

Section 1406.80 Delivery of Illustrations and Record Retention a) If a basic illustration: 1) Is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that ill…

Section 1406.90 Annual Report – Notice to Policyowners a) In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policyowner with an annual report on the status of the policy that shall contain at least the following informa…

Section 1407.10 Purpose and Applicability The purpose of this Part is to regulate accelerated benefit provisions in individual and group life insurance policies, contracts, riders, endorsements or amendments and to provide required standards of disclosure. This Part is not applic…

Section 1407.20 Definitions "Accelerated Benefits" means amounts payable in advance of the time life insurance benefits would otherwise be payable because of the occurrence of a terminal illness or a qualified covered condition. "Code" means the Illinois Insurance Code [215 ILCS …

Section 1407.30 Form Requirements No policies, contracts, riders, endorsements or amendments which provide for accelerated benefits may be issued for delivery in this State unless they meet the following requirements. a) General Standards and Practices 1) The name given to the co…

Section 1407.40 Standards for Claims Payment a) Before payment of any benefits the insurer may require medical evidence of the terminal illness or qualified condition, including clinical, radiological, histological or laboratory evidence of the condition. Insurers shall evaluate …

Section 1407.50 Required Disclosure Provisions Solicitations: a) If there is a premium or cost of insurance charge, the insurer shall give the applicant a generic illustration numerically demonstrating any effect of the payment of the accelerated benefit on the policy's cash valu…

Section 1407.60 Actuarial Standards a) Financing Options 1) The insurer may require a premium charge or cost of insurance charge for the accelerated benefit. In the case of group insurance, the additional cost may also be reflected in the experience rating. This premium charge or…

Section 1407.70 Actuarial Disclosure and Reserves a) Actuarial Memorandum. Concurrently with the accelerated benefit policy form filing required by this Part, each insurer shall file with the Director an actuarial memorandum prepared by a qualified actuary that describes the acce…

Section 1409.10 Purpose a) The purpose of this Part is to provide: 1) Tables of select mortality factors and procedures for their use; 2) Minimum standards for the valuation of plans with nonlevel premiums or benefits; 3) Minimum standards for the valuation of plans with secondar…

Section 1409.20 Applicability This Part shall apply to all life insurance policies, with or without nonforfeiture values issued on or after January 1, 2000, subject to the following exceptions and conditions: a) Exceptions 1) This Part does not apply to any individual life insura…

Section 1409.30 Definitions "1980 CSO Valuation Tables" means the Commissioner's 1980 Standard Ordinary Mortality Table (1980 CSO Table) without ten-year selection factors, incorporated into the 1980 amendments to the National Association of Insurance Commissioners (NAIC) Standar…

Section 1409.40 General Calculation Requirements for Basic Reserves and Deficiency Reserves a) Basic Reserves 1) At the election of the company for any one or more specified plans of life insurance, the minimum mortality standard for basic reserves may be calculated using the 198…

Section 1409.50 Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Premiums or Guaranteed Nonlevel Benefits (Other Than Universal Life Policies) a) Basic Reserves. Basic reserves shall be calculated as the greater of the segmented reserves and the uni…

Section 1409.60 Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies That Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period a) General. 1) Policies…

Section 1409.70 Use of 2001 CSO Mortality Table The 2001 CSO Mortality Tables found in 50 Ill. Adm. Code 1412.Appendix A may be used for calculations under the requirements of this Part as authorized and described in 50 Ill. Adm. Code 1412.50. (Source: Added at 28 Ill. Reg. 9262,…

Section 1409.80 Use of 2001 CSO Preferred Class Structure Mortality Table The 2001 CSO Preferred Class Structure Mortality Tables may be used for calculations under the requirements of this Part using the guidance in 50 Ill. Adm. Code 1412.50, but substituting the 2001 CSO Prefer…

Section 1409.APPENDIX A Select Mortality Factors This Appendix contains six tables of select mortality factors which include: 1) male aggregate, 2) male nonsmoker, 3) male smoker, 4) female aggregate, 5) female nonsmoker, and 6) female smoker. These tables apply to both age last …

Section 1409.ILLUSTRATION C Male, Smoker Issue Duration Age 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+ 0-15 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 16 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 …

Section 1410.10 Purpose The purpose of this Part is to establish the required contract provisions for modified guaranteed annuity contracts.

Section 1410.20 Applicability This Part shall apply to insurance producers who sell modified guaranteed annuity contracts and insurers who issue such contracts in this State.