Illinois Administrative Code

Section 1410.60 General Account Modified Guaranteed Annuity (GAMGA) Contract Requirements a) Mandatory Contract Benefit and Design Requirements 1) Any MGA contract delivered or issued for delivery in this State shall contain a statement of the procedures to be followed by the ins…

Section 1410.70 Reserve Liabilities a) The reserve is the greater of (a)(1) or (a)(2) below: 1) the cash surrender value at the date of valuation, excluding the effect of the MVA; or 2) the present value of the contract benefits that are guaranteed, such present value assuming a …

Section 1410.80 Reports to Policyholders Insurers will annually provide their contractholders with a report showing both the account value and the cash surrender value. The report must indicate the amount of any expense charges used to determine the account value and that the acc…

Section 1411.10 Purpose and Applicability The purpose of this Part is to supplement the Department’s existing regulations on life insurance policies with standards and requirements specifically applicable to all individual and group universal life insurance policies and group cer…

Section 1411.20 Definitions Cash Surrender Value means the net cash surrender value plus any amounts outstanding as policy loans. Code means the Illinois Insurance Code [215 ILCS 5]. Director means the Director of the Illinois Department of Insurance. Fixed Premium Universal Life…

Section 1411.30 Valuation a) Requirements The minimum valuation standard for individual and group universal life insurance policies shall be the Commissioners Reserve Valuation Method, as described in this Section for those policies, and the tables and interest rates specified in…

Section 1411.40 Nonforfeiture a) Minimum Cash Surrender Values for Flexible Premium Universal Life Insurance Policies 1) Minimum cash surrender values for flexible premium universal life insurance policies shall be determined separately for the basic policy or group certificate a…

Section 1411.50 Policy and Group Certificate Requirements and Disclosures a) Periodic Disclosure The policy shall provide that the individual policyowner or group certificateholder will be sent, without charge, at least annually, a report that will serve to keep the policyowner o…

Section 1411.60 Annual Report to Individual Policyowner or Group Certificateholder a) Requirements The policy shall provide that the individual policyowner or group certificateholder will be sent, without charge, at least annually, a report that will serve to keep the policyowner…

Section 1412.10 Purpose The purpose of this Part is to recognize, permit and prescribe the use of the 2001 Commissioners Standard Ordinary (CSO) Mortality Table under the authority of Sections 223(3)(a)(i) and 229.2(4c)(h)(vi) of the Illinois Insurance Code and for use under 50 I…

Section 1412.20 Definitions 1980 CSO Valuation Tables means the Commissioner's 1980 Standard Ordinary Mortality Table (1980 CSO Table) without 10 year selection factors, incorporated into the 1980 amendments to the National Association of Insurance Commissioners (NAIC) Standard V…

Section 1412.30 Applicability a) 2001 CSO Mortality Table 1) At the election of the company for any one or more specified plans of insurance and subject to the conditions stated in this Part, the 2001 CSO Mortality Table may be used as the minimum standard for policies issued on …

Section 1412.40 Conditions a) For each plan of insurance with separate rates for smokers and nonsmokers, an insurer may use: 1) Composite mortality tables to determine minimum reserve liabilities and minimum cash surrender values and amounts of paid-up nonforfeiture benefits; 2) …

Section 1412.50 Applicability of the 2001 CSO Mortality Table to 50 Ill. Adm. Code 1409 a) The 2001 CSO Mortality Table may be applied to 50 Ill. Adm. Code 1409 in the following manner, subject to the transition dates for use found in Section 1412.30: 1) 50 Ill. Adm. Code 1409.20…

Section 1412.60 Gender-Blended Tables a) For any ordinary life insurance policy delivered or issued for delivery in this State on and after July 1, 2004 and before January 1, 2017 that utilizes the same premium rates and charges for male and female lives or is issued in circumsta…

Section 1412.70 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 50 Ill. Adm. Code 1409 using the guidance in Section 1412.50 of this Part, but substituting the…

Section 1412.APPENDIX A 2001 CSO Mortality Tables

Section 1412.ILLUSTRATION HH Blended 60% Male, 40% Female Composite Select & Ultimate Age Last Birthday Blended 60% Male, 40% Female Composite Select & Ultimate Age Last Birthday Issue Age Duration 1 2 3 4 5 6 7 8 9 10 11 12 13 con't 0 0.61 0.40 0.29 0.22 0.20 0.20 0.21 0.22 0.22…

Section 1413.10 Purpose The purpose of this Part is to recognize, permit and prescribe the use of mortality tables that reflect differences in mortality between preferred and standard lives in determining minimum reserve liabilities in accordance with Section 223(3)(a)(i) of the …

Section 1413.20 Definitions 2001 CSO Mortality Table means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of…

Section 1413.30 2001 CSO Preferred Class Structure Table At the election of the company, for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this Part, the 2001 CSO Preferred Class Structure Mortalit…

Section 1413.40 Conditions a) For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the Super Preferred Nonsmoker, Preferred Nonsmoker, and Residual Standard Nonsmoker Tables to substitute for the nonsmoker mortality table f…

Section 1414.10 Scope This Part applies to preneed insurance contracts issued on or after January 1, 2009 and before January 1, 2017, as defined in Section 1414.30, and to similar policies and certificates. The determination shall be based, in part, on the use of various types of…

Section 1414.20 Purpose The purpose of this Part is to establish for preneed insurance products minimum mortality standards for reserves and nonforfeiture values, and to require the use of the 1980 Commissioner's Standard Ordinary (CSO) Life Valuation Mortality Table for use in d…

Section 1414.30 Definitions 1980 CSO Valuation Table means the Commissioner's 1980 Standard Ordinary Mortality Tables (1980 CSO) without 10 year selection factors, incorporated into the 1980 amendments to the NAIC Standard Valuation Law, and the smoker and nonsmoker variations of…

Section 1414.40 Minimum Valuation Mortality Standards For preneed insurance contracts, as defined in Section 1414.30 of this Part, and similar policies and contracts, the minimum mortality standard for determining reserve liabilities and nonforfeiture values for both male and fem…

Section 1414.50 Transition Rules a) For preneed insurance policies issued on or after January 1, 2009, and before January 1, 2012, the 2001 CSO may be used as the minimum standard for reserves and minimum standard for nonforfeiture benefits for both male and female insureds. b) I…

Section 1415.10 Scope a) This Part applies to individual life insurance policies, other than variable and non-variable adjustable life policies and current assumption whole life policies, that provide for an endowment benefit, materially less than the policy face amount, at a spe…

Section 1415.20 Purpose The purpose of this Part is to establish minimum standards for nonforfeiture values for certain life insurance policies having intermediate cash values, as described in Section 1415.10 of this Part.

Section 1415.30 Methodology a) The following methodology shall be used in the determination of minimum cash surrender values for policies subject to this Part in accordance with the requirements of Section 229.2 of the Insurance Code (Standard Nonforfeiture Law for Life Insurance…

Section 1551.10 Authority (Repealed) (Source: Repealed at 44 Ill. Reg. 3896, effective March 2, 2020)

Section 1551.100 Disclosure a) The following information shall be furnished to an applicant for a contract of variable life insurance prior to execution of the application: 1) A summary description of the insurance company and its principal activities. 2) A summary explanation in…

Section 1551.20 Definitions "Annuity 2000 Mortality Table" means the mortality table developed by the Society of Actuaries Committee on Life Insurance Research and adopted as a recognized mortality table for annuities in December 1996 by the National Association of Insurance Comm…

Section 1551.30 Qualification of Insurance Companies to Issue Variable Contracts a) Before any company shall deliver or issue for delivery variable contracts within this State it shall submit to the Director: 1) A general description of the kinds of variable contracts it intends …

Section 1551.40 Separate Accounts A domestic company issuing variable contracts shall establish one or more separate accounts pursuant to Section 245.21 of the Code, subject to the following provisions of this Section: a) Reserves for: 1) benefits guaranteed as to dollar amount a…

Section 1551.50 Filing of Contracts a) The filing requirements applicable to variable contracts shall be those filing requirements otherwise applicable under existing statutes and regulations of this State with respect to individual and group life insurance and annuity contract f…

Section 1551.60 Contracts Providing for Variable Benefits a) Illustrations of benefits payable under any variable contract shall not include projections of past investment experience into the future or attempted predictions of future investment experience; provided, however, that…

Section 1551.70 Required Reports a) Any company issuing individual variable contracts shall mail to the contractholder at least once in each contract year after the first at his last address known to the company, a statement or statements reporting the investments held in the sep…

Section 1551.80 Foreign or Alien Companies If the law or regulation in the place of domicile of a foreign or alien company provides a degree of protection to the policyholder and the public which is substantially equal to that provided by applicable provisions of the Illinois Ins…

Section 1551.90 Licensing of Producers for Variable Contracts a) No producer shall be eligible to sell or offer for sale a variable contract unless, prior to making any solicitation or sale of such a contract, the producer also is licensed as a variable contract producer. No agen…

Section 1551.APPENDIX A Variable Annuities Only [Name of Company] Hypothetical Illustration of Benefits From An Immediate Variable Annuity Prepared for John Doe Age & Sex 65 Male Annuity Form Life Annuity with 120 Months Certain Single Purchase Payment $15,000 Annuity payments wi…

Section 1703.10 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 1703.20 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 1703.30 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 1703.5 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 1704.10 Authorization of Fraternal Benefit Societies to Write Accident and Health Insurance No domestic, foreign or alien fraternal benefit society (except a society providing exclusively for benefits in case of death or disability resulting solely from accident and which…

Section 1704.20 Establishment and Maintenance of Separate Accounts Every society which writes accident and health insurance shall establish and maintain entirely separate accounts for all transactions pertaining to its accident and health business, to which accounts shall be cred…