10507.5. (a) An insurer may deliver or issue for delivery one or
more policies, contracts, or agreements that establish the insurer's
obligations under the policies, contracts, or agreements by reference
to a portfolio of assets that is not owned by or possessed by the
insurer, if the following requirements are met:
(1) The insurer is authorized to deliver, or issue for delivery,
life insurance policies in this state.
(2) The insurer has at least one billion dollars ($1,000,000,000)
in admitted assets or one hundred million dollars ($100,000,000) in
capital and surplus, as reflected by the most recent financial
statements on file with the commissioner. For the purposes of this
section, "capital and surplus" includes capital and surplus plus the
asset valuation reserve and one-half of the liability for dividends,
all as reflected on the most recent financial statement on file with
the commissioner.
(b) Policies, contracts, and agreements referred to in subdivision
(a), that are not otherwise subject to filing under applicable law
and regulation, shall be filed, before being marketed or issued in
this state, by the insurer with the commissioner. If the commissioner
finds that the policies, contracts, or agreements submitted pursuant
to subdivision (a) contemplate practices that are unfair or
unreasonable or otherwise inconsistent with the provisions of this
code, he or she may disapprove of the forms of policies, contracts,
or agreements specifying in what regard the policies, contracts, or
agreements are unfair or unreasonable or otherwise inconsistent with
the provisions of this code.
(c) As an alternative to the filing and approval procedure set
forth in subdivision (b), if a bulletin is issued by the commissioner
pursuant to subdivision (d), an insurer that satisfies eligibility
criteria specified in that bulletin may file with the commissioner
the proposed form of the policy, contract, or agreement, together
with an officer's certificate, accompanied by an actuarial
certification and demonstration, and other supporting material, all
in accordance with procedures set forth in the bulletin authorized by
subdivision (d). An insurer may issue and deliver a policy,
contract, or agreement the day following approval by the commissioner
of a filing under this subdivision. Absent explicit approval, an
insurer may, no sooner than 30 working days after the filing of the
policy, contract, or agreement and all required supporting
documentation, issue and deliver any policy, contract, or agreement
that has been filed pursuant to this subdivision if the commissioner
has not notified the insurer in writing that the filing lacks the
required documentation or that he or she objects to the filing upon
grounds sufficient to disapprove the policy, contract, or agreement.
The bulletin authorized in subdivision (d) shall set forth procedures
providing the insurer an opportunity to respond to any objections.
If the commissioner finds that the officer's certificate or the
actuarial certification or demonstration filed in support of the
policy, contract, or agreement is false or incorrect, the
commissioner may, in addition to taking any other lawful measures,
including suspension of authority to use the policy, contract, or
agreement, declare the insurer ineligible to utilize the alternative
procedure authorized by this subdivision for a period not to exceed
three years from the date of the filing of the policy, contract or
agreement. The commissioner may summarily suspend the use of any
policy, contract, or agreement used by the insurer pursuant to this
subdivision on any grounds sufficient to disapprove the policy,
contract, or agreement, or if the filing fails to include the
required documents. This suspension may be prospective only.
Suspension of use of a policy, contract, or agreement shall be in
writing and shall specify the reasons for the suspension. Unless the
commissioner in the suspension order or subsequent thereto specifies
a later effective date for the suspension, any suspension shall be
effective on the day following the receipt of the suspension order by
the insurer. An insurer affected by any suspension, issued pursuant
to this subdivision, of a policy, contract, or agreement may refile
the policy, contract, or agreement with the commissioner pursuant to
subdivision (b). The commissioner may suspend or discontinue filings
of policies, contracts, or agreements under this subdivision at any
time upon notice to affected insurers. Any filing by an insurer of a
policy, contract, or agreement under this subdivision that is not
accepted by the commissioner may be filed by the insurer pursuant to
subdivision (b).
(d) The commissioner may issue, and amend from time to time
thereafter, as he or she deems appropriate, a bulletin setting forth
reasonable requirements for insurers that issue policies, contracts,
or agreements referred to in subdivision (a), relating to all of the
following:
(1) The reserves to be maintained by insurers for those policies,
contracts, or agreements.
(2) The accounting and reporting of those policies, contracts, or
agreements.
(3) The disclosure of information to be given to holders and
prospective holders of those policies, contracts, or agreements.
(4) The qualification of persons selling those policies,
contracts, or agreements on behalf of the insurers.
(5) The filing of those policies, contracts, or agreements with
the commissioner.
(6) The filing with the commissioner of specified sales and
financial information pertaining to those policies, contracts and
agreements.
(7) The eligibility criteria and procedure for filing under
subdivision (c).
(8) Other matters relating to those policies, contracts, and
agreements as the commissioner considers necessary, proper, and
advisable that are not inconsistent with this section.
This bulletin shall have the same force and effect, and may be
enforced by the commissioner to the same extent and degree, as
regulations issued by the commissioner until the time that the
commissioner issues additional or amended regulations.
(e) Upon completion of the determination of qualification required
by subdivision (a), and, whether authorization to issue policies,
contracts, or agreements referred to in subdivision (a) is granted or
denied, the commissioner shall require the payment of the fee
specified in Section 736 for the determination of qualification.
10507.5. (a) An insurer may deliver or issue for delivery one or
more policies, contracts, or agreements that establish the insurer's
obligations under the policies, contracts, or agreements by reference
to a portfolio of assets that is not owned by or possessed by the
insurer, if the following requirements are met:
(1) The insurer is authorized to deliver, or issue for delivery,
life insurance policies in this state.
(2) The insurer has at least one billion dollars ($1,000,000,000)
in admitted assets or one hundred million dollars ($100,000,000) in
capital and surplus, as reflected by the most recent financial
statements on file with the commissioner. For the purposes of this
section, "capital and surplus" includes capital and surplus plus the
asset valuation reserve and one-half of the liability for dividends,
all as reflected on the most recent financial statement on file with
the commissioner.
(b) Policies, contracts, and agreements referred to in subdivision
(a), that are not otherwise subject to filing under applicable law
and regulation, shall be filed, before being marketed or issued in
this state, by the insurer with the commissioner. If the commissioner
finds that the policies, contracts, or agreements submitted pursuant
to subdivision (a) contemplate practices that are unfair or
unreasonable or otherwise inconsistent with the provisions of this
code, he or she may disapprove of the forms of policies, contracts,
or agreements specifying in what regard the policies, contracts, or
agreements are unfair or unreasonable or otherwise inconsistent with
the provisions of this code.
(c) As an alternative to the filing and approval procedure set
forth in subdivision (b), if a bulletin is issued by the commissioner
pursuant to subdivision (d), an insurer that satisfies eligibility
criteria specified in that bulletin may file with the commissioner
the proposed form of the policy, contract, or agreement, together
with an officer's certificate, accompanied by an actuarial
certification and demonstration, and other supporting material, all
in accordance with procedures set forth in the bulletin authorized by
subdivision (d). An insurer may issue and deliver a policy,
contract, or agreement the day following approval by the commissioner
of a filing under this subdivision. Absent explicit approval, an
insurer may, no sooner than 30 working days after the filing of the
policy, contract, or agreement and all required supporting
documentation, issue and deliver any policy, contract, or agreement
that has been filed pursuant to this subdivision if the commissioner
has not notified the insurer in writing that the filing lacks the
required documentation or that he or she objects to the filing upon
grounds sufficient to disapprove the policy, contract, or agreement.
The bulletin authorized in subdivision (d) shall set forth procedures
providing the insurer an opportunity to respond to any objections.
If the commissioner finds that the officer's certificate or the
actuarial certification or demonstration filed in support of the
policy, contract, or agreement is false or incorrect, the
commissioner may, in addition to taking any other lawful measures,
including suspension of authority to use the policy, contract, or
agreement, declare the insurer ineligible to utilize the alternative
procedure authorized by this subdivision for a period not to exceed
three years from the date of the filing of the policy, contract or
agreement. The commissioner may summarily suspend the use of any
policy, contract, or agreement used by the insurer pursuant to this
subdivision on any grounds sufficient to disapprove the policy,
contract, or agreement, or if the filing fails to include the
required documents. This suspension may be prospective only.
Suspension of use of a policy, contract, or agreement shall be in
writing and shall specify the reasons for the suspension. Unless the
commissioner in the suspension order or subsequent thereto specifies
a later effective date for the suspension, any suspension shall be
effective on the day following the receipt of the suspension order by
the insurer. An insurer affected by any suspension, issued pursuant
to this subdivision, of a policy, contract, or agreement may refile
the policy, contract, or agreement with the commissioner pursuant to
subdivision (b). The commissioner may suspend or discontinue filings
of policies, contracts, or agreements under this subdivision at any
time upon notice to affected insurers. Any filing by an insurer of a
policy, contract, or agreement under this subdivision that is not
accepted by the commissioner may be filed by the insurer pursuant to
subdivision (b).
(d) The commissioner may issue, and amend from time to time
thereafter, as he or she deems appropriate, a bulletin setting forth
reasonable requirements for insurers that issue policies, contracts,
or agreements referred to in subdivision (a), relating to all of the
following:
(1) The reserves to be maintained by insurers for those policies,
contracts, or agreements.
(2) The accounting and reporting of those policies, contracts, or
agreements.
(3) The disclosure of information to be given to holders and
prospective holders of those policies, contracts, or agreements.
(4) The qualification of persons selling those policies,
contracts, or agreements on behalf of the insurers.
(5) The filing of those policies, contracts, or agreements with
the commissioner.
(6) The filing with the commissioner of specified sales and
financial information pertaining to those policies, contracts and
agreements.
(7) The eligibility criteria and procedure for filing under
subdivision (c).
(8) Other matters relating to those policies, contracts, and
agreements as the commissioner considers necessary, proper, and
advisable that are not inconsistent with this section.
This bulletin shall have the same force and effect, and may be
enforced by the commissioner to the same extent and degree, as
regulations issued by the commissioner until the time that the
commissioner issues additional or amended regulations.
(e) Upon completion of the determination of qualification required
by subdivision (a), and, whether authorization to issue policies,
contracts, or agreements referred to in subdivision (a) is granted or
denied, the commissioner shall require the payment of the fee
specified in Section 736 for the determination of qualification.
10507.5. (a) An insurer may deliver or issue for delivery one or
more policies, contracts, or agreements that establish the insurer's
obligations under the policies, contracts, or agreements by reference
to a portfolio of assets that is not owned by or possessed by the
insurer, if the following requirements are met:
(1) The insurer is authorized to deliver, or issue for delivery,
life insurance policies in this state.
(2) The insurer has at least one billion dollars ($1,000,000,000)
in admitted assets or one hundred million dollars ($100,000,000) in
capital and surplus, as reflected by the most recent financial
statements on file with the commissioner. For the purposes of this
section, "capital and surplus" includes capital and surplus plus the
asset valuation reserve and one-half of the liability for dividends,
all as reflected on the most recent financial statement on file with
the commissioner.
(b) Policies, contracts, and agreements referred to in subdivision
(a), that are not otherwise subject to filing under applicable law
and regulation, shall be filed, before being marketed or issued in
this state, by the insurer with the commissioner. If the commissioner
finds that the policies, contracts, or agreements submitted pursuant
to subdivision (a) contemplate practices that are unfair or
unreasonable or otherwise inconsistent with the provisions of this
code, he or she may disapprove of the forms of policies, contracts,
or agreements specifying in what regard the policies, contracts, or
agreements are unfair or unreasonable or otherwise inconsistent with
the provisions of this code.
(c) As an alternative to the filing and approval procedure set
forth in subdivision (b), if a bulletin is issued by the commissioner
pursuant to subdivision (d), an insurer that satisfies eligibility
criteria specified in that bulletin may file with the commissioner
the proposed form of the policy, contract, or agreement, together
with an officer's certificate, accompanied by an actuarial
certification and demonstration, and other supporting material, all
in accordance with procedures set forth in the bulletin authorized by
subdivision (d). An insurer may issue and deliver a policy,
contract, or agreement the day following approval by the commissioner
of a filing under this subdivision. Absent explicit approval, an
insurer may, no sooner than 30 working days after the filing of the
policy, contract, or agreement and all required supporting
documentation, issue and deliver any policy, contract, or agreement
that has been filed pursuant to this subdivision if the commissioner
has not notified the insurer in writing that the filing lacks the
required documentation or that he or she objects to the filing upon
grounds sufficient to disapprove the policy, contract, or agreement.
The bulletin authorized in subdivision (d) shall set forth procedures
providing the insurer an opportunity to respond to any objections.
If the commissioner finds that the officer's certificate or the
actuarial certification or demonstration filed in support of the
policy, contract, or agreement is false or incorrect, the
commissioner may, in addition to taking any other lawful measures,
including suspension of authority to use the policy, contract, or
agreement, declare the insurer ineligible to utilize the alternative
procedure authorized by this subdivision for a period not to exceed
three years from the date of the filing of the policy, contract or
agreement. The commissioner may summarily suspend the use of any
policy, contract, or agreement used by the insurer pursuant to this
subdivision on any grounds sufficient to disapprove the policy,
contract, or agreement, or if the filing fails to include the
required documents. This suspension may be prospective only.
Suspension of use of a policy, contract, or agreement shall be in
writing and shall specify the reasons for the suspension. Unless the
commissioner in the suspension order or subsequent thereto specifies
a later effective date for the suspension, any suspension shall be
effective on the day following the receipt of the suspension order by
the insurer. An insurer affected by any suspension, issued pursuant
to this subdivision, of a policy, contract, or agreement may refile
the policy, contract, or agreement with the commissioner pursuant to
subdivision (b). The commissioner may suspend or discontinue filings
of policies, contracts, or agreements under this subdivision at any
time upon notice to affected insurers. Any filing by an insurer of a
policy, contract, or agreement under this subdivision that is not
accepted by the commissioner may be filed by the insurer pursuant to
subdivision (b).
(d) The commissioner may issue, and amend from time to time
thereafter, as he or she deems appropriate, a bulletin setting forth
reasonable requirements for insurers that issue policies, contracts,
or agreements referred to in subdivision (a), relating to all of the
following:
(1) The reserves to be maintained by insurers for those policies,
contracts, or agreements.
(2) The accounting and reporting of those policies, contracts, or
agreements.
(3) The disclosure of information to be given to holders and
prospective holders of those policies, contracts, or agreements.
(4) The qualification of persons selling those policies,
contracts, or agreements on behalf of the insurers.
(5) The filing of those policies, contracts, or agreements with
the commissioner.
(6) The filing with the commissioner of specified sales and
financial information pertaining to those policies, contracts and
agreements.
(7) The eligibility criteria and procedure for filing under
subdivision (c).
(8) Other matters relating to those policies, contracts, and
agreements as the commissioner considers necessary, proper, and
advisable that are not inconsistent with this section.
This bulletin shall have the same force and effect, and may be
enforced by the commissioner to the same extent and degree, as
regulations issued by the commissioner until the time that the
commissioner issues additional or amended regulations.
(e) Upon completion of the determination of qualification required
by subdivision (a), and, whether authorization to issue policies,
contracts, or agreements referred to in subdivision (a) is granted or
denied, the commissioner shall require the payment of the fee
specified in Section 736 for the determination of qualification.
