Authority to issue variable contracts

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    (a)    (1)    A stock insurer or mutual insurer may issue individual and group variable life insurance contracts that provide for payment varying directly with the investment experience of a segregated asset account if the stock insurer or mutual insurer:

            (i)    is authorized to issue life insurance contracts in the State; and

            (ii)    is authorized by the Commissioner to issue individual and group variable life insurance contracts.

        (2)    A stock insurer or mutual insurer may issue individual and group variable annuity contracts that provide for payment varying directly with the investment experience of a segregated asset account if the stock insurer or mutual insurer:

            (i)    is authorized to issue annuity contracts in the State; and

            (ii)    is authorized by the Commissioner to issue individual and group variable annuity contracts.

    (b)    To be authorized to issue variable contracts, a stock insurer or mutual insurer shall comply with regulations adopted by the Commissioner.

    (c)    The regulations of the Commissioner may include:

        (1)    requirements for a minimum capital and surplus in excess of the amount otherwise required for the issuance of life insurance contracts and annuity contracts that are not variable contracts; and

        (2)    other requirements that the Commissioner considers appropriate to safeguard the interests of variable contract holders, other policyholders, insurers, and the public.


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