Oregon Administrative Code

836-051-0150 Individual Deferred Annuities Surrender Charge Statutory Authority; Purpose; Applicability (1) OAR 836-051-0150 to 836-051-0156 are adopted pursuant to the authority granted to the Director of the Department of Consumer and Business Services in section 2, chapter 85,…

836-051-0153 Limitations on Surrender Charge Scales (1) For contracts where surrender charge scales are measured from the date of each premium payment an insurer must demonstrate compliance with minimum value either by: (a) Treating each premium payment as a separate single premi…

836-051-0156 Fair Surrender Charges An insurer shall treat funds withdrawn from a contract, when such funds are subject to surrender charges, as withdrawn on a first-in-first-out basis unless the insurer allows an alternative method that is more beneficial to the contract holder.…

836-051-0200 Authority; Effective Date OAR 836-051-0200 to 836-051-0250 are adopted by the Director of the Department of Consumer and Business Services pursuant to ORS 733.308. Statutory/Other Authority: ORS 731.244, 733.306 & 743.215 Statutes/Other Implemented: ORS 733.306 Histo…

836-051-0210 Purpose The purpose of OAR 836-051-0200 to 836-051-0250 is to recognize the following mortality tables for use in determining the minimum standard of valuation for annuity and pure endowment contracts: (1) The 1983 Table "a". (2) The 1983 Group Annuity Mortality (198…

836-051-0220 Definitions For the purpose of OAR 836-051-0200 to 836-051-0250, the following terms have the following meanings: (1) "1983 Table 'a'" means that mortality table developed by the Society of Actuaries Committee to Recommend a New Mortality Basis for Individual Annuity…

836-051-0230 Individual Annuity or Pure Endowment Contracts (1) Except as provided in sections (2) and (3) of this rule, the 1983 Table "a" is recognized and approved as an individual annuity mortality table for valuation and, at the option of the insurer, may be used for purpose…

836-051-0235 Application of the 2012 IAR Mortality Table (1) In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows: q*x **2012+n** = qx**2012** (1 – G2x)**n**. The resulting qx 2012+n shall be rounded to three dec…

836-051-0240 Group Annuity or Pure Endowment Contracts (1) Except as provided in sections (1) and (2) of this rule, the 1983 GAM Table, the 1983 Table “a” and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the …

836-051-0250 Application of the 1994 GAR Table In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows: q*x **1994+n** = qx**1994** (1 - AAx)**n** where the qx**1994** and AAxs are as specified in the 1994 GAR Table. [ED. NOT…

836-051-0300 Statutory Authority; Effective Date; Applicability (1) OAR 836-051-0300 to 836-051-0380 are adopted pursuant to ORS 743.154. (2) OAR 836-051-0300 to 836-051-0380 become effective on June 1, 1992. (3) No life insurance policy, certificate or rider containing an accele…

836-051-0310 Acknowledgement of Concurrence for Payout from Assignee or Beneficiary Prior to payment of an accelerated benefit, an insurer shall obtain a signed acknowledgement of concurrence for payout as follows: (1) From an assignee, when the amount of benefit that is accelera…

836-051-0320 Payment Options; Filing of Claims; Remaining Benefits (1) An insurer shall include among payment options for the accelerated benefit an option that allows the policy owner or certificate holder to take the benefit as a lump sum. The insurer shall not make the benefit…

836-051-0330 Disclosure (1) An accelerated benefit provision shall include “accelerated benefit” or “accelerated death benefit” as part of the descriptive title. The policy, certificate or rider schedule must: (a) Include one of the following: (A) Any premium or cost of insurance…

836-051-0340 Exercise of the Accelerated Benefit (1) For conditions of eligibility resulting from accident, an accelerated benefit provision must be exercisable on or after the issue date of the accelerated benefit provision. (2) For conditions of eligibility resulting from illne…

836-051-0350 Waiver of Premium (1) An insurer may offer a waiver of premium as part of the accelerated benefit provision in the absence of a regular waiver of premium provision. (2) When an accelerated benefit is included in an individual term policy or an individually-paid group…

836-051-0360 Discrimination In the payment of accelerated benefits, an insurer shall not unfairly discriminate among insureds with differing qualifying events covered under the policy or among insureds with similar qualifying events covered under the policy. An insurer shall not …

836-051-0370 Minimum Benefit Standards (1) For purposes of this rule, accelerated benefits consist of: (a) The risk portion of the accelerated benefit, determined by deducting the cash values in the contract from the total accelerated benefit amount; and (b) The portion of the ac…

836-051-0380 Actuarial Disclosure and Reserves (1) An insurer shall submit an actuarial memorandum with each filing that describes the accelerated benefit, the risks, the expected costs, the development of premiums, the bases used to calculate benefits payable and the calculation…

836-051-0500 Purpose; Authority (1) The purpose of OAR 836-051-0500 to 836-051-0600 is to provide rules for life insurance policy illustrations that will protect consumers and foster consumer education. OAR 836-051-0500 to 836-051-0600 provide illustration formats, prescribe stan…

836-051-0510 Applicability and Scope (1) OAR 836-051-0500 to 836-051-0600 apply to all group life insurance policies and certificates and all individual life insurance policies except: (a) Variable life insurance; (b) Individual and group annuity contracts; (c) Credit life insura…

836-051-0520 Definitions For the purposes of OAR 836-051-0500 to 836-051-0600: (1) “Actuarial Standards Board” means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. (2) “Contract premium” means the gross premiu…

836-051-0530 Policies to Be Illustrated (1) An insurer shall identify each life insurance policy form filed with the Director on or after July 1, 1997, that will be marketed with an illustration. For informational purposes, the insurer shall file with the policy form filing a sam…

836-051-0540 General Rules and Prohibitions (1) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of OAR 836-051-0500 to 836-051-0600, be clearly labeled "life insurance illustration" and contain the following basic information:…

836-051-0550 Standards for Basic Illustrations (1) The format of a basic illustration shall conform to the following requirements: (a) The illustration shall be labeled with the date on which it was prepared; (b) Each page, including any explanatory notes or pages, shall be numbe…

836-051-0560 Standards for Supplemental Illustrations (1) A supplemental illustration may be provided so long as: (a) It is appended to, accompanied by or preceded by a basic illustration that complies with OAR 836-051-0500 to 836-051-0600; (b) The non-guaranteed elements shown a…

836-051-0570 Delivery of Illustration and Record Retention (1) If a basic illustration is used by an insurance producer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with OAR 836-051-0500 to …

836-051-0580 Annual Report; Notice to Policy Owners (1) In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain at least the following informat…

836-051-0590 Annual Certifications (1) The board of directors of each insurer shall appoint one or more illustration actuaries. (2) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Prac…

836-051-0600 Trade Practice Regulation Violation of any provision of OAR 836-051-0500 to 836-051-0600 is an unfair trade practice under ORS 746.240. Statutory/Other Authority: ORS 731.244 & 746.240 Statutes/Other Implemented: ORS 746.075, 746.085, 746.100, 746.110 & 746.240 Histo…

836-051-0700 Authorization, Genetic Testing (1) A person who asks an applicant for insurance to take a genetic test in connection with an application for insurance shall obtain the specific authorization of the applicant by use of the form in Exhibit 1 to this rule, or a form tha…

836-051-0750 Purpose; Authority; Applicability; and Effective Date (1) OAR 836-051-0750 to 836-051-0775 are adopted pursuant to the general rulemaking authority of the Director in ORS 731.244, and specific authority of ORS 733.306 and 743.215 for approving mortality tables adopte…

836-051-0755 Definitions As used in OAR 836-051-0750 to 836-051-0775: (1) “Preneed insurance” is any life insurance policy that is issued in combination with, in support of, with an assignment to, or as a guarantee for a prearrangement agreement for goods and services to be provi…

836-051-0760 Minimum Valuation Mortality Standards For preneed insurance and to similar policies and certificates used to fund funeral services and expenses, the minimum mortality standard for determining reserve liabilities and nonforfeiture values for both male and female insur…

836-051-0765 Minimum Valuation Interest Rate Standards (1) The interest rates used in determining the minimum standard for valuation of preneed insurance shall be the calendar year statutory valuation interest rates as defined in ORS 733.306 and 733.310. (2) The interest rates us…

836-051-0770 Minimum Valuation Method Standards (1) The method used in determining the standard for the minimum valuation of reserves of preneed insurance shall be the method defined in ORS 733.306 and 733.310. (2) The method used in determining the standard for the minimum nonfo…

836-051-0775 Transition Rules (1) For preneed insurance policies issued on or after the effective date of this rule 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 i…

836-051-0900 Purpose; Authority (1) OAR 836-051-0900 to 836-051-0925 establish standards for disclosure of minimum information relating to annuity contracts, to protect consumers and foster consumer education. OAR 836-051-0900 to 836-051-0925 prescribe the minimum information tha…

836-051-0905 Applicability and Scope (1) OAR 836-051-0900 to 836-051-0925 apply to all group and individual annuity contracts and certificates except: (a) Immediate and deferred annuities that contain no nonguaranteed elements except as provided in OAR 836-051-0920(2); (b) Annuit…

836-051-0910 Definitions As used in OAR 836-051-0900 to 836-051-0925: (1) “Contract owner” means the owner named in the annuity contract or a certificate holder in the case of a group annuity contract. (2) “Determinable elements” means elements that are derived from processes or …

836-051-0915 Standards for the Disclosure Document and Buyer’s Guide (1) When the application for an annuity contract is taken in a face-to-face meeting, the applicant shall be given, at or before the time of application, both the disclosure document described in section (6) of t…

836-051-0920 Report to Contract Owners (1) For an annuity in the payout period with changes in non-guaranteed elements and for the accumulation period of a deferred annuity, the insurer shall provide each contract owner with a report, at least annually, on the status of the contr…

836-051-0925 Trade Practice Regulation Violation of any provision of OAR 836-051-0900 to 836-051-0925 is an unfair trade practice under ORS 746.240. Statutory/Other Authority: ORS 731.244 Statutes/Other Implemented: ORS 742.009, 746.075, 746.085, 746.110 & 746.240 History: ID 14-…

836-052-0103 Purpose (1) OAR 836-052-0103 to 836-052-0194 are adopted in order to: (a) Provide for the standardization of coverage and simplification of terms and benefits of Medicare supplement policies; (b) Facilitate public understanding and comparison of such policies; (c) El…

836-052-0107 Authority OAR 836-052-0103 to 836-052-0194 are adopted pursuant to the general rulemaking authority of the Director under ORS 731.244 and the specific authority in 742.009, 743.013, 743.680 to 743.689, and 746.240. Statutory/Other Authority: ORS 731.244, 743.010, 743…

836-052-0114 Applicability and Scope (1) Except as otherwise specifically provided in OAR 836-052-0134, 836-052-0140, 836-052-0144, 836-052-0145, 836-052-0160 and 836-052-0185, 836-052-0103 to 836-052-0194 apply to the following Medicare supplement policies and certificates issue…

836-052-0119 Definitions As used in OAR 836-052-0103 to 836-052-0194: (1) "Applicant" means: (a) In the case of an individual Medicare supplement policy, the person who seeks to contract for insurance benefits; (b) In the case of a group Medicare supplement policy, the proposed c…

836-052-0124 Policy Definitions and Terms A policy or certificate may not be advertised, solicited or issued for delivering in this state as a Medicare supplement policy or certificate unless the policy or certificate contains definitions or terms that conform to the following re…

836-052-0129 Policy Provisions (1) Except for permitted preexisting condition clauses as described in OAR 836-052-0133(2)(a), 836-052-0134(2)(a) and 836-052-0132(1)(a), no policy or certificate may be advertised, solicited or issued for delivery in this state as a Medicare supple…

836-052-0132 Benefit Standards for 2010 Standardized Medicare Supplement Benefit Plan Policies or Certificates Issued for Delivery with an Effective Date of Coverage on or After June 1, 2010 The following standards are applicable to all Medicare supplement policies or certificate…