R590. Insurance, Administration.R590-133. Variable Contracts.
R590-133-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-20-106.
R590-133-2. Purpose and Scope.
(1) The purpose of this rule is to regulate the issuance and sale of a variable contract.
(2) This rule applies to an insurer or producer offering variable life and annuity insurance business in this state.
R590-133-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1) "Variable contract" means a life insurance policy or an annuity contract that provides a benefit that may vary according to the investment experience of any separate account the insurer establishes and maintains under Sections 31A-5-217 and 31A-18-102.
(2) "Variable contract producer" means a licensed producer with a variable contracts line of authority.
R590-133-4. Governance of Separate Accounts.
Each separate account is governed by Sections 31A-5-217, 31A-5-217.5, 31A-18-102, 31A-20-106, 31A-21-301, 31A-22-411, and this rule.
R590-133-5. Required Reports.
(1) An insurer issuing an individual variable contract shall deliver to the contract holder at least once in each contract year after the first contract year a report of the investments held in the separate account.
(2) An insurer issuing an individual variable contract shall deliver to the contract holder at least once in each contract year after the first contract year a report of the following information as of a date no earlier than four months before the statement's delivery date:
(i) for an annuity contract when payments have not started:
(A) the number of accumulation units credited to the contract and the dollar value of a unit; or
(B) the contract holder's account value; and
(ii) for a life insurance policy, the death benefit dollar amount.
(3) An insurer shall submit annually to the commissioner a statement regarding the business of the insurer's separate account by the date and in a form prescribed by the NAIC.
R590-133-6. Foreign Insurers.
If the laws or rules of a foreign insurer's domicile protects contract holders and the public to a degree substantially equal to the protections in this rule, the commissioner may exercise discretion and allow the foreign insurer's compliance with the domicile's laws and rules as compliance with this rule.
R590-133-7. Licensing of Variable Contract Producers.
(1) A producer is not eligible to sell, offer for sale, or make a recommendation to purchase or terminate a variable contract until the producer is licensed as a variable contract producer.
(2) A producer's variable contract license is not effective until the producer:
(a) obtains a life insurance line of authority;
(b) provides evidence that the producer passed the Financial Industry Regulatory Authority examinations series six or seven and 63; and
(c) provides evidence of being Utah approved from the Financial Industry Regulatory Authority, Central Registration Depository.
(3) Notwithstanding Subsection (2), a nonresident producer may be licensed as a variable contract producer in this state upon providing evidence of being licensed as a variable contract producer in the resident state.
R590-133-8. Additional Provisions Applicable to Variable Contract Producers.
(1) A person licensed in this state as a variable contract producer shall immediately report to the commissioner:
(a) any suspension or revocation of the variable contract producer's license or life insurance producer's license in any other state or territory of the United States;
(b) any disciplinary sanction imposed upon the producer by any:
(i) national securities exchange;
(ii) national securities organization; or
(iii) federal, state, or territorial agency with jurisdiction over securities or variable contracts; and
(c) any judgment, conviction, or injunction entered against the producer involving:
(i) fraud;
(ii) deceit;
(iii) misrepresentation;
