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31.09.04.00.htm 31.09.04.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 09 LIFE INSURANCE AND ANNUITIES Chapter 04 Contracts on a Variable Basis Authority: Insurance Article, §2-109, 8-442(d) and 16-601―16-603, Annotated Code of Maryland
31.09.04.01.htm 31.09.04.01. 01 Authority and Purpose.. The issuance or delivery of contracts on a variable basis (hereinafter sometimes referred to as "contracts" in Maryland in any manner not in compliance with this chapter shall be deemed to be the transaction of insurance business hazardous to policyholders and the public, and contrary to the public interest.
31.09.04.02.htm 31.09.04.02. 02 Definitions.. A. In this chapter the following terms have the meanings indicated.. B. Terms Defined.. 1) “Contracts on a variable basis” means annuity contracts, as defined in Insurance Article, §1-101(e) Annotated Code of Maryland, which provide for payments varying directly with the investment experience of a segregated asset account, hereinafter referred to as “variable contract account” as distinguished from “fixed annuity contracts” This definition does not include an
31.09.04.03.htm 31.09.04.03. 03 Qualifications of Agents and Brokers.. A. Qualification to Sell Variable Annuity Contracts.. 1) A person may not sell or offer for sale in this State any variable annuity contract unless the person is an agent or broker and has filed with the Commissioner, in a form satisfactory to the Commissioner, evidence that the person holds any license or authorization which may be required for the solicitation or sale of variable annuities by any federal or State securities law.
31.09.04.04.htm 31.09.04.04. 04 Qualifications of Insurers.. A. An insurer may issue the contracts provided it:. 1) Otherwise qualifies as a life insurance company;. 2) Has surplus assets or funds (within the meaning of Insurance Article, §4-105, Annotated Code of Maryland) as of the end of the preceding calendar year of at least $1,000,000; and3) Complies with one of the following:. a) Is limited by its charter and bylaws exclusively to the sale of contracts on a variable basis, including additional benefi
31.09.04.05.htm 31.09.04.05. 05 Filing, Approval of Forms.. A. A contract on a variable basis may not be issued or delivered in this State unless the form of the contract has been filed with and approved by the Commissioner and unless the form of application for the contract, and of any certificate to be used with the contract issued on a group basis, have been filed with and approved by the Commissioner.B. The Commissioner shall disapprove or withdraw previous approval of the form of contract, applicat
31.09.04.06.htm 31.09.04.06. 06 Attainment of Balance.. A. Before the issuance of any individual contract on a variable basis, the insurer shall reasonably satisfy itself that the total amounts being applied and proposed to be applied to provide the prospective annuitant with income on a variable basis will not substantially exceed the amount which would be required to purchase the income in a predetermined dollar amount which the annuitant can reasonably expect to receive.B. In determining the rea
31.09.04.07.htm 31.09.04.07. 07 Contract Provisions.. A. Any contract on a variable basis issued or delivered in this State shall contain a statement of the essential features of the procedure to be followed by the insurer in determining the dollar amount of variable benefits or other contractual payments or values under the contract and shall state in clear terms that this amount may decrease or increase according to this procedure. A contract, and any certificate evidencing variable benefits issue
31.09.04.08.htm 31.09.04.08. 08 Administration and Accounting Procedures.. A. Any domestic life insurer specifically authorized by the Commissioner to issue contracts on a variable basis and any foreign or alien life insurer specifically authorized by the Commissioner to deliver these contracts in Maryland may establish and operate one or, upon express approval by the Commissioner, more than one, segregated asset accounts to be known as variable contract accounts. An insurer which has establishe
31.09.04.09.htm 31.09.04.09. 09 Group Contracts.. A contract on a variable basis may be issued as an individual contract or as a group contract, but any contract shall be considered as being issued on a group basis only if it conforms to the description in one of the following sections:A. A contract issued to an employer providing a plan of retirement annuities for covered employees on the date of issue, the stipulated payments on the contract to be remitted by the employer and to be paid either wholly by t
31.09.04.9999.htm 31.09.04.9999. Administrative History Effective date: June 1, 1965. Amended effective November 1, 1973. Regulation .03 amended effective August 22, 1988 (15:17 Md. R. 2048) ―. Chapter recodified from COMAR 09.30.42 to COMAR 31.09.04 effective September 7, 1998 (25:18 Md. R. 1439)Regulation .02B amended effective April 25, 2016 (43:8 Md. R. 498). Regulation .08L amended effective April 25, 2016 (43:8 Md. R. 498).
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