Illinois Administrative Code

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.

Section 1410.30 Definitions "Adjusted Minimum Nonforfeiture Amount" means the minimum nonforfeiture amount as defined in Section 229.4a of the Code, adjusted by the Market Value Adjustment. "Appointed Actuary" means an appointed actuary as defined in Section 223(13) of the Code. …

Section 1410.40 Authority of Insurers The following requirements apply to all insurers who have authority to issue MGA contracts in this State. a) Approval to do Business: 1) No insurer shall deliver or issue for delivery any MGA contracts unless licensed to do life insurance or …

Section 1410.50 Filing of Contracts The filing requirements applicable to MGA contracts shall be made pursuant to Section 143 of the Code and 50 Ill. Adm. Code 916. Filings shall include a demonstration that the nonforfeiture provisions of the contract comply with Section 229.4a …

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