18 Del. Admin. Code § 1201-3.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 1201-3.0 - Qualification of Insurance Companies to Issue Variable Contracts

3.1 No company shall deliver or issue for delivery variable contracts within this State unless and until:

3.1.1 it is licensed by this Department to engage in the life insurance or annuity business in this State, and

3.1.2 in addition thereto, is licensed by this Department to engage in the business of issuing and delivering variable contracts in this State.

3.1.3 Before a variable contract license shall be issued by this Department, the Commissioner shall be satisfied that the condition and method of operation of the company in connection with the issuance of such contracts will not render its operation hazardous to the public or its policyholders in this State. In determining the qualifications of a company requesting a variable contract license, the Commissioner shall consider among other things:

3.1.3.1 The history and financial condition of the company;

3.1.3.2 The character, responsibility and general fitness of the officers and directors of the company; and

3.1.4 In the case of a company other than a domestic insurer, whether the statute or regulations of the jurisdiction of its incorporation, as to the issuance of variable contracts, provide a degree of protection to the policyholders and the public substantially equal to that provided by the Insurance Laws of this State and the rules and regulations issued thereunder on the question of the operations of such a business in variable contracts.

3.2 If the company is a wholly owned subsidiary of an admitted life insurance company, or affiliated with such company by common management or ownership, it may be deemed by the Commissioner to have satisfied the provisions of section 3.1.2, if either it or such admitted life company satisfies the aforementioned provisions; provided, further, that companies licensed and having a satisfactory record of doing business in this State for a period of at least three (3) years may be deemed to have satisfied the Commissioner with respect to section 3.1.2 above. Any wholly owned subsidiary or company affiliated as aforesaid qualifying to issue variable contracts by virtue of this subsection may continue to issue such contracts only for so long as it continues to remain a wholly owned subsidiary of, or affiliated as aforesaid with, the parent company, unless such subsidiary or affiliated company, subsequent to such qualification, has satisfied such requirements wholly on its own merits.

3.3 Before any company shall be licensed to deliver or issue for delivery variable contracts within this State it shall, in addition to complying with the applicable Insurance Laws of this State and the other provisions of this Regulation, file with the Commissioner the following material:

3.3.1 A certified copy of a resolution adopted by its board of directors establishing one or more separate accounts. Any amendments to this resolution or any resolution superseding the same shall immediately be filed with the Commissioner;

3.3.2 A copy of the Company's latest "Report of Examination" and "Annual Statement" if the company has not been previously admitted;

3.3.3 A general description of the kinds of variable contracts to be issued or in effect and, as to individual variable contracts, a statement of reserving procedures, investment objectives and two copies of any financial prospectus contained in a registration statement filed with the Securities and Exchange Commission;

3.3.4 A copy of any management or service contract entered into between the company and a third party or between any separate account and a third party, the terms of which contain provisions for the third party to provide managerial, investment or sales services to any separate account; any such contract entered into following the initial filing shall also be filed with the Commissioner;

3.3.5 Biographical statements concerning officers and directors of the insurance company or separate account and, if requested by the Commissioner, of the officers and directors of the management company; and

3.3.6 Such other information as may be required by the Commissioner.

18 Del. Admin. Code § 1201-3.0