Illinois Administrative Code

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…

Section 1704.30 Provision for Payment Every society must provide for the payment on accident and health contracts of premiums, assessments or contributions which together with the accretions thereon shall be sufficient to provide for the claims, reserves, expenses and other liabi…

Section 1704.40 Prohibition of Transfer of Money Collected to Pay for Losses No part of the money collected for any purposes other than accident and health contracts and no part of the accretions thereon shall be transferred to the accident and health accounts or be used to pay a…

Section 1704.50 Deficiency in Accounts Any deficiency in the accident and health accounts shall be apportioned only to the accident and health contracts, except only as provided in Section 1704.40 above, and prompt action shall be taken to eliminate such deficiency.

Section 1704.60 Transferral of Accounts to Other Societies Any society may provide that all or any part of the surplus in the accident and health accounts may be transferred to and become a part of any other accounts of the society.

Section 1705.10 Application This Part shall apply to: a) Life Certificates, endorsement, rider and application forms filed with the Department by foreign, alien and domestic societies as required by Section 143 of the Illinois Insurance Code (Ill. Rev. Stat. 1981, ch. 73, par. 75…

Section 1705.20 Construction of Life Certificate Forms a) 1) Fraternal Benefit Societies "Societies" may issue certificates providing for the payment of death benefits as authorized by the Code. 2) Section 288(1) of the Illinois Insurance Code, insofar as it authorizes additional…

Section 1705.30 Construction of Accident and Health Forms a) A separate certificate which provides for the payment of benefits as a result of bodily injury, disablement or death by accident and against disablement resulting from sickness or old age, and every benefit appertaining…

Section 1705.40 Construction of All Forms Issued by Fraternal Benefit Societies a) Certificates issued under Section 288(2) of the Illinois Insurance Code may be issued in connection with or separate from life certificates issued under Section 288(1). Because such certificates mu…

Section 1705.EXHIBIT A Certificate of Compliance STATE OF ) ) SS COUNTY OF ) (Official's name) , being first duly sworn, deposes and says that: 1. He is the (Official title) of the (Name of fraternal benefit society) , a fraternal benefit society formed under the laws of the Stat…

Section 1710.10 Hiring and Discharge of Chief Executive Officer A domestic fraternal benefit society that provides any of the benefits specified in Section 297.1 of the Illinois Insurance Code (Code) [215 ILCS 5/297.1] must be governed by a board of directors and managed by a qua…

Section 2002.10 Authority This Part is issued by the Director of Insurance 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 insurance laws of thi…

Section 2002.100 Use of Statistics a) An advertisement relating to the dollar amounts of claims paid, the number of persons insured, or similar statistical information relating to any insurer or policy shall not use irrelevant facts, and shall not be used unless it accurately ref…

Section 2002.110 Identification of Plan or Number of Policies a) When a choice of the amount of benefits is referred to, an advertisement which is an invitation to contract shall disclose that the amount of benefits provided depends upon the plan selected and that the premium wil…

Section 2002.120 Disparaging Comparisons and Statements An advertisement shall not directly or indirectly make unfair or incomplete comparisons of policies or benefits or comparisons of non-comparable policies of other insurers, and shall not disparage competitors, their policies…

Section 2002.130 Jurisdictional Licensing and Status of Insurer a) An advertisement which is intended to be seen or heard beyond the limits of the jurisdiction in which the insurer is licensed shall not imply licensing beyond those limits. The Guideline for this paragraph (a) is …

Section 2002.140 Identity of Insurer a) The name of the actual insurer shall be stated in all of its advertisements. The form number or numbers of the policy advertised shall be stated in an advertisement which is an invitation to contract. An advertisement shall not use a trade …

Section 2002.150 Group or Quasi-Group Implications An advertisement of a particular policy shall not state or imply that prospective insureds become group or quasi-group members covered under a group policy and as such enjoy special rates or underwriting privileges, unless such i…

Section 2002.160 Introductory, Initial or Special Offers a) 1) An advertisement of an individual policy shall not directly or by implication represent that a contract or combination of contracts is an introductory, initial or special offer, or that applicants will receive substan…

Section 2002.170 Statements About an Insurer An advertisement shall not contain statements which are untrue in fact, or by implication misleading, with respect to the assets, corporate structure, financial standing, age or relative position of the insurer in the insurance busines…

Section 2002.180 Enforcement Procedures a) Advertising File. Each insurer shall maintain at its home or principal office a complete file containing every printed, published or prepared advertisement of its individual policies and typical printed, published or prepared advertiseme…