Insurance

Administration

Rule R590-226: Submitting Life Insurance Filings

Effective Date: 04/21/2023

Admin. Code Reference: R590-226

Rule Type: Current Rule

R590. Insurance, Administration.

R590-226. Submitting Life Insurance Filings.

R590-226-1. Authority.

This rule is promulgated by the commissioner pursuant to Sections 31A-2-201 and 31A-2-201.1.

R590-226-2. Purpose and Scope.

(1) The purpose of this rule is to establish procedures for submitting a life insurance filing.

(2) This rule applies to an insurer offering life insurance, including a group life insurance policy issued to a nonresident policyholder when a Utah resident is provided coverage under the policy.

R590-226-3. Definitions.

Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:

(1) "Certification" means a statement that a submitted filing is compliant.

(2) "Compliant" means a filing that is complete and complies with Title 31A, Insurance Code, and Title R590, Administration.

(3) "Data page" means the page or pages in a policy or certificate providing the specific data for the insured and detailing the coverage provided.

(4) "Discretionary group" means a group that is specifically authorized by the commissioner under Section 31A-22-509.

(5) "Electronic filing" means a filing submitted using SERFF.

(6) "Eligible group" means a group that meets the requirements in Sections 31A-22-501.1 through 31A-22-508.

(7) "File and use" means a filing is used, sold, or offered for sale after it is filed with the department.

(8) "Filing objection letter" means a letter issued by the commissioner when a review of a filing determines the filing is not compliant and may require:

(a) correction of non-compliant items;

(b) clarification; or

(9) "Letter of authorization" means a letter signed by an officer of the insurer giving authority to a third party to submit a filing on behalf of the insurer.

(10) "NAIC Product Coding Matrix" means a numerical coding system developed by the NAIC that provides uniform naming convention, uniform terminology, and uniform description for a type of insurance product in a filing.

(11) "Order to prohibit use" means an order issued by the commissioner prohibiting the use of a filing.

(12) "Qualified actuary" means an individual who is qualified to sign the applicable state of actuarial opinion in accordance with the American Academy of Actuaries qualification standards.

(13) "Rejected" means a filing is:

(a) not compliant;

(b) returned to the insurer stating the reason for rejection; and

(14) "Resubmission" means a correction, modification, or replacement of a previously rejected, withdrawn, or prohibited filing.

(15) "SERFF" means the System for Electronic Rate and Form Filing.

(16) "Type of insurance" or "TOI" means:

(a) a specific life insurance product identified by the NAIC Product Coding Matrix including term, universal, variable, or whole life; and

(b) a TOI that can be selected in SERFF when submitting a filing in Utah.

(17) "Utah filed date" means the date the department indicates a paper filing is accepted.

R590-226-4. General Filing Information.

(1)(a) A filing shall be accurate, consistent, complete, and contain all required documents.

(b) The commissioner may request additional information, as necessary.

(2)(a) An insurer is responsible for assuring that any document in a filing is compliant.

(b) A filing that is not compliant is subject to regulatory action.

(3)(a) A filing that is not compliant shall be rejected.

(b) A rejected filing:

(i) may be resubmitted under a new filing; and

(ii) may not be reopened for purposes of resubmission.

(4) A prior filing will not be researched to determine the purpose of the current filing.

(5) The department does not review every filing.

(a) A filing may be reviewed:

(i) when submitted;

(ii) when a complaint is received;

(iii) during a regulatory examination or investigation; or

(iv) when the department considers a review necessary.

(b) If a filing is reviewed and is found not compliant, the commissioner:

(i) shall issue a filing objection letter or an order to prohibit use; and

(ii) may require the insurer to disclose deficiencies in a form or a rating practice to each affected insured.

(6)(a) A correction to a filing in an open status may be made at any time.

(b) A correction to a filing in a closed status:

(i) may not be made;

(ii) requires a new filing; and

(iii) shall reference the original filing in the filing description of the new filing.

(7) An insurer shall notify the department when discontinuing or withdrawing a previously filed form or supplementary information.

(8) If the Utah filed date is used for compliance with this rule, a complete copy with all subsequent amendments, including the Utah filed date, shall be attached as a supporting document.

R590-226-5. Filing Submission Requirements.

(1) General Filing Requirements.

(a) A filing shall be submitted:

(i) electronically through SERFF, except that a life settlement filing may be submitted using email; and

(ii) using the NAIC Product Coding Matrix, including the:

(A) TOI; and

(B) sub-TOI.

(b) A filing may not include more than one:

(i) TOI; or

(ii) insurer.

(2) SERFF Filing.

(a) Filing Description. The filing description on the general information tab shall contain the following information, in the sequence listed.

(i) Provide a summary, including:

(A) the intent of the filing; and

(B) the purpose of each document within the filing.

(ii) Indicate if the filing:

(A) is a first-time filing;

(B) is a new form revising an existing form;

(D) is a resubmission that includes a summary of the changes made and the previous filing's Utah filed date or SERFF tracking number;

(E) includes informational documents, referencing the Utah filed date or SERFF tracking number; or

(F) does not include the policy, and if so, provide the Utah filed date or SERFF tracking number of the policy and each amendment, summarizing the effect on the policy.

(iii) Identify any provision that is unusual, innovative, controversial, or that was previously objected to or prohibited, and explain why the provision is included in the filing.

(iv) List the range of minimum and maximum ages for which the policy will be issued.

(v) Indicate if the policy or associated forms have been submitted to the Interstate Insurance Product Regulation Commission.

(vi) Identify the intended market for filing, such as senior citizens, nonprofit organizations, association members, corporate-owned, or bank-owned.

(vii) Indicate if the form is illustrated.

(b) Filing Certification.

(i) The insurer shall certify that a filing and all related documents are compliant.

(ii) The following statement shall be included in the filing description: "BY SUBMITTING THIS FILING I CERTIFY THAT THE ATTACHED FILING HAS BEEN COMPLETED IN ACCORDANCE WITH UTAH ADMINISTRATIVE RULE R590-226 AND IS COMPLIANT WITH APPLICABLE UTAH LAW."

(iii) The Utah Life and Annuity Filing Certification shall be attached to the supporting documentation tab.

(iv) A filing may be rejected if the filing certification is false, missing, or incomplete.

(v) A false filing certification may subject the insurer to administrative action.

(c) Domiciliary Approval and Filing Status Information. A filing for a foreign insurer shall include on the supporting documentation tab:

(i) filing status information, including:

(A) a list of states where a similar filing is submitted;

(B) the date of submission; and

(ii) if the filing is specific to Utah and only filed in Utah, include:

(A) the phrase "UTAH SPECIFIC - NOT SUBMITTED TO ANY OTHER STATE"; and

(B) the reason the filing is only filed in Utah.

(d) Group Questionnaire or Discretionary Group Authorization Letter. A group filing shall attach to the supporting documentation tab:

(i) a complete Utah Life and Annuity Group Questionnaire; or

(ii) a copy of the discretionary group authorization letter.

(e) Letter of Authorization.

(i) A filing submitted by a third party shall have a letter of authorization from the insurer attached to the supporting documentation tab.

(ii) The insurer is responsible for the filing being compliant.

(f) Variable Data.

(i)(A) Variable data is denoted by brackets, and is defined either by embedding the variable data in the form or in a separate form with a unique form number and an edition date.

(B) Variable data submitted as a separate form shall be in a manner that follows the construction of the form, by page and paragraph, or page and footnote.

(ii) A certification statement of variability shall be attached to the supporting documentation tab and shall certify that:

(A) the final form will not contain brackets;

(B) the use of variable data is administered in a uniform and non-discriminatory manner that will not result in unfair discrimination;

(D) any changes to variable data shall be filed before implementation.

(iii) Any variation of the variable data shall be disclosed, for example "Deductible is $(xxx.xx) in $(xxx.xx) increments."

(iv) Variable data shall be reasonable, appropriate, and compliant.

(v) The use of unfiled variable data is prohibited.

(g) Life Insurance Illustration Materials. If a life insurance form is identified as illustrated, the filing shall include:

(i) a basic illustration completed with data; and

(ii) an illustration actuary's certification.

(h) Items Submitted for Filing.

(i) A form shall be attached to the form schedule tab.

(ii) All supporting documentation, including actuarial memoranda, shall be attached to the supporting documentation schedule tab.

(iii) An actuarial memorandum required under Section R590-226-7, R590-226-8, or R590-226-9 shall include a certification of compliance with nonforfeiture and valuation laws by a qualified actuary.

(iv) A report is exempt from a filing submission requirement under:

(A) Subsections (2)(a)(ii) through (2)(a)(vi);

(B) Subsection (2)(c);

(D) Subsection (2)(f).

(v) Underlining and Strikethrough. A resubmission or a new form revising an existing form shall include an underline and strikethrough version of the form and the final form on the form schedule tab.

(3) An insurer submitting a life settlement filing is exempt from:

(a) Subsections (2)(a)(iv) through (2)(a)(vii);

(b) Subsections (2)(b) through (2)(e); and

R590-226-6. Procedures for Filings.

(1) Forms in General.

(a) A form is a file and use filing.

(b) A form shall be identified by a unique form number that may not be variable.

(d) Blank spaces within a form shall be completed to accurately represent the purpose and use.

(i) If the intended market is for a senior age market, the form shall be completed with data representative of senior insureds.

(ii) Any data in a form, including the data page, shall be consistent with the actuarial memorandum, the basic illustration, the statement of policy cost and benefit information, and the application, as applicable.

(2) Application Filing.

(a) An application or enrollment form may be submitted as a separate filing or filed with its related policy or certificate filing.

(b) If an application was previously filed or is filed separately, an informational copy of the application shall be included with the policy or certificate filing.

(3) Policy Filing.

(a) Each TOI shall be filed separately.

(b) A policy filing consists of one policy form, including the application, data page, certificate, rider, endorsement, and actuarial memorandum.

(d)(i) Only one policy filing for a single TOI may be filed.

(ii) A life insurance policy with different premium payment periods is considered one form.

(4) Rider or Endorsement Filing.

(a) Related riders or endorsements may be filed together.

(b) A single rider or endorsement that affects multiple forms may be filed if the filing description references each affected form.

(c) A rider or endorsement that is based on morbidity risks, such as critical illness or long-term care, is accident and health insurance and shall be filed under Rule R590-220.

(d) The filing description shall include:

(i) a list of each policy form number, title, and Utah filed date or SERFF tracking number;

(ii) a description of how each filed rider or endorsement affects the policy; and

(iii) a data page with data for the submitted form.

(e) Unrelated riders or endorsements may not be filed together.

R590-226-7. Additional Procedures for Individual Life Insurance Forms and Group Life Insurance Certificates Marketed Individually.

(1) An insurer filing a life insurance form shall comply with:

(a) Title 31A, Chapter 21, Insurance Contracts in General;

(b) Title 31A, Chapter 22, Part 4, Life Insurance and Annuities;

(d) Rule R590-93;

(e) Rule R590-94;

(f) Rule R590-95;

(g) Rule R590-98;

(h) Rule R590-108;

(i) Rule R590-122;

(j) Rule R590-177;

(k) Rule R590-191;

(l) Rule R590-198; and

(m) Rule R590-223.

(2) A life insurance policy, rider, or endorsement filing shall include an actuarial memorandum that demonstrates compliance with Section 31A-22-408 for:

(a) an individual life insurance policy; or

(b) a group life insurance policy that is marketed individually.

(3) The actuarial memorandum shall include:

(a) a detailed description of the coverage;

(b) a demonstration of compliance with nonforfeiture law;

(d) a certification of compliance with applicable nonforfeiture and valuation laws by a qualified actuary.

R590-226-8. Additional Procedures for Group Market Filings.

(1) A group life insurance filing shall comply with:

(a) Title 31A, Chapter 21, Insurance Contracts in General;

(b) Title 31A, Chapter 22, Part 4, Life Insurance and Annuities;

(d) Rule R590-79;

(e) Rule R590-108;

(f) Rule R590-122;

(g) Rule R590-177; and

(h) Rule R590-191.

(2) Statement of Policy Cost and Benefit Information.

(a) A statement of policy cost and benefit information shall be included in group life insurance that includes a preneed funeral policy or prearrangement.

(b) The disclosure requirement extends to the issuance or delivery of a certificate and the policy under Section R590-79-4.

(3) Actuarial Memorandum.

(a) An actuarial memorandum shall be included in a non-term group life insurance filing.

(b) A filing for a policy, a rider, or an endorsement shall include an actuarial memorandum that demonstrates compliance with Section 31A-22-515.

(i) a detailed description of the coverage;

(ii) a demonstration of compliance with nonforfeiture law;

(iii) the specific basis for exemption from nonforfeiture law; and

(iv) a certification of compliance with applicable nonforfeiture and valuation laws by a qualified actuary.

(4) An insurer shall determine if the group is an eligible group or a discretionary group.

(a) Eligible Group.

(i) A filing for an eligible group shall include a Utah Life and Annuity Group Questionnaire.

(ii) A questionnaire shall be completed for each eligible group under Sections 31A-22-501.1 through 31A-22-508.

(iii) When a filing applies to more than one employer or employee group, only one questionnaire is required.

(b) Discretionary Group.

(i) If a group is not an eligible group, a discretionary group authorization shall be obtained.

(ii) If a form filing is submitted without discretionary group authorization, the filing shall be rejected.

(iii) To obtain discretionary group authorization, a compliant Utah Life and Annuity Request for Discretionary Group Authorization must be submitted.

(iv) A change to an authorized discretionary group shall be submitted to the department within 30 days of the change.

(v) The commissioner may periodically re-evaluate a group's authorization.

(vi) An insurer shall file a separate discretionary group authorization to add another TOI to a previously authorized group.

R590-226-9. Additional Procedures for Variable Life Filings.

(1) An insurer submitting a variable life insurance filing shall comply with:

(a) Section 31A-22-411; and

(b) Rule R590-133.

(2) An insurer submitting a variable life insurance policy shall certify it has:

(a) a variable contract line of authority; and

(b) a separate account established in the state of domicile.

(3) Actuarial Memorandum. An actuarial memorandum shall:

(a) be included in a variable life insurance filing;

(b) describe the type of accounts available in the policy, identifying the accounts that are separate accounts, including modified guaranteed accounts, and general accounts;

(i) separate accounts pursuant to Section 31A-22-411; and

(ii) fixed interest general accounts pursuant to Section 31A-22-408;

(d) identify a fixed account's:

(i) guaranteed minimum interest rate; and

(ii) maximum surrender charge; and

(e) include a certification of compliance with applicable nonforfeiture and valuation laws by a qualified actuary.

R590-226-10. Additional Procedures for a Policy, Rider, or Endorsement Providing Life Insurance and Accident and Health Insurance Benefits.

(1) A life insurance filing that includes an accident and health insurance benefit, rider, or endorsement shall comply with Rule R590-220.

(2)(a) A combination filing is a policy, rider, or endorsement that creates a product providing both life insurance and accident and health insurance benefits.

(b) The acceptable combination filings are:

(i) a rider or endorsement; or

(ii) an integrated policy.

(c) A combination filing shall be submitted separately to both the health instance and the life instance in SERFF, as both instances will process the filing.

(d) A rider or endorsement shall be submitted to the appropriate instance in SERFF based on the benefits provided in the rider or endorsement.

(3) The filing description shall include the Utah filed date or SERFF tracking number and shall identify the filing as a combination of TOIs, such as:

(a) a whole life insurance policy with a long-term care insurance benefit; or

(b) a major medical health policy that includes a life insurance benefit.

R590-226-11. Classification of Documents.

(1) A record submitted under this rule is subject to Title 63G, Chapter 2, Government Records Access and Management Act.

(2) A record may be classified as protected if:

(a) requested under Section 63G-2-309;

(b) the request in Subsection (2)(a) includes each required element of Subsections 63G-2-309(1)(a)(i)(A) and 63G-2-309(1)(a)(i)(B); and

(3) A filing may not be reopened to reclassify a previously filed document.

(4) A pattern of requesting that non-qualifying documents be protected, including putting both protected and public information in one document, may violate this rule.

R590-226-12. Insurer Annual Reports.

(1) An annual report shall be properly identified and shall be filed separately from any other filing.

(2) An annual report shall be submitted when requested.

R590-226-13. Objection Letter and Disposition Procedures.

(1) Response to a Filing Objection Letter. A response to a filing objection letter shall:

(a) be provided in SERFF under the filing correspondence tab;

(b) address each objection;

(d) include an underline and strikeout version of each revised document;

(e) provide a final version of the revised document, incorporating all changes;

(f) attach each document under the appropriate tab; and

(g) reference any additional document attached under the supporting documentation tab if the content is not included in the response.

(2) Order to Prohibit Use.

(a) An order to prohibit use is final 15 days after the date of the order to prohibit use.

(b) A filing that is prohibited pursuant to an order to prohibit use shall be discontinued by the date specified in the order to prohibit use.

(c) To contest an order to prohibit use, the insurer shall request a hearing, in writing, no later than 15 days after the date of the order to prohibit use.

(d) Notwithstanding Subsection (2)(c), an insurer may submit a resubmission that shall:

(i) make the requested changes addressed in the filing objection letter; and

(ii) reference the previously prohibited filing.

(3) Filing Rejection.

(a) An insurer may submit a resubmission.

(b) A resubmission shall reference the previously rejected filing.

R590-226-14. Severability.

If any provision of this rule, Rule R590-226, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.

KEY: life insurance filings

Date of Last Change: April 21, 2023

Notice of Continuation: March 7, 2024

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-201.1; 31A-2-202