N.J. Admin. Code § 11:4-44.4

Current through Register Vol. 56, No. 23, December 2, 2024

Section 11:4-44.4 - Prohibited provisions

(a) The following restrictions shall apply to all individual life insurance and annuities contracts on a variable basis:

1. The insurer shall not reserve the right to unilaterally terminate or discontinue transfer privileges. Suspension of such privilege for a reasonable period is permitted if administered in a nondiscriminatory manner.

2. The insurer shall not require a signature guarantee of the owner for withdrawals, surrenders, loans or transfers.

3. The insurer shall not reserve the right to terminate the contract for suspension in premium activity or for failure to maintain minimal amounts in the separate account, unless the reduction in values in the separate account is the direct result of partial withdrawal or surrender activity. However, an insurer may automatically transfer all monies to one fund or division of the separate account if the value of the separate account falls below a stated minimum. Any conditions for the transfer shall be described in the contract form. This paragraph shall not require an insurer to continue a scheduled, required premium contract beyond any grace period or nonforfeiture benefit provided by the contract or required by law.

N.J. Admin. Code § 11:4-44.4

Amended by R.2001 d.410, effective 11/5/2001.
See: 33 New Jersey Register 2265(a), 33 New Jersey Register 3748(a).
In (a), deleted former 3 and recodified former 4 as 3.