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Indiana Department of Insurance

IDOI > Company Compliance > Life > Life and Annuity Review Standards Life and Annuity Review Standards

FILING ALERT!! Any carrier electing to use the new self-certification process, PLEASE include in your filing a piece of colored paper marked "Self-Certification Filing" in large letters. We have no other way to identify those filings which should be fast-tracked under this new option.

Note: You can find Indiana statutes at http://www.in.gov/legislative/ic/code/title27/ and Indiana regulations at http://www.in.gov/legislative/iac/ Bulletins issued since July 1999 are on the Department’s website.

1. Annuities   Authority
Table of cash surrender values, if any, for 20 years (not applicable to variable, immediate, or flexible premium deferred annuities)   IC 27-1-12.6-3
Prohibition against a provision that automatically Withdraws or places a loan against annuity forfeiture values in order to pay premiums on a life or annuity policy.
IC 27-1-12.6-4
10-day free look period. The policy can be returned to the company or the agent through whom it was purchased. The provision must be on the front cover.
IC 27-1-12.6-5
Requires certain disclosures requirements if a cash value or death benefit is not provided.

IC 27-1-12.6-6
Requires a statement of the mortality table, if any, and interest rate used to determine the nonforfeiture benefits and death benefits.   IC 27-1-12.5-2(a)(3)
Requires a statement that the nonforfeiture values and death benefits are not less than that required by law.
IC 27-1-12.5-2(a)(4)
   
2. Group Annuities
 
Filing requirements.   Bulletin 93
     
3. Charitable and Gift Annuities    
Exemption from regulation.   IC 27-1-12.4-2
     
4. Individual and Joint Life    
The title of the policy (i.e. Term Life, Universal Life) must be on the face of the policy and the back of the policy. The back title page must face outward.   IC 27-1-12-6(11)
Under the “Free Look” provision the insured may return the policy to the insurer (the company), the agent who sold the policy, or to any other agent of the insurer. The free look provision must be on the front cover of the policy. All of the premium received must be refunded.
IC 27-1-12-43
There must be a provision that settlement will be done within two (2) months of receiving a death claim.   IC 27-1-12-6(10)
Under either Cash Surrender or Cash Surrender Value, there should be a statement that if the policy is surrendered within thirty (30) days of a policy anniversary, the cash surrender value will not be less than the cash surrender value on that policy anniversary. (Does not apply to individual variable or universal policies)   IC 27-1-12-7(b)
Company may not prohibit loans in the first policy year, they may not have a minimum loan amount or limit the amount of the loan to a certain percentage of the cash value. The loan value is the cash value minus the cost of insurance and the loan interest rate to the next anniversary. (Note: The exception is on variable universal life, it may have a minimum loan amount and the loan value may be up to 90% of the cash value).  

IC 27-1-12-6(8)

The limit on incontestability is two (2) years maximum.   IC 27-1-12-6(3)
Misstatement of Age should state that the proceeds will be what the premium received would have purchased at the correct age or sex.
IC 27-1-12-6(4)
There should be a grace period provision of thirty (30) days.   IC 27-1-12-6(2)
There must be a provision that interest will be paid if payment is not received in thirty (30) days. Interest will be from the date of death to the date of settlement.   IC 27-1-12-35(a)(b)
     
5. Group Life    
Under the “Free Look” provision the insured may return the policy to the insurer (the company), the agent who sold the policy, or to any other agent of the insurer. The free look provision must be on the front cover of the policy. All of the premium received must be refunded.   IC 27-1-12-43
There must be a provision that settlement will be done within two (2) months of receiving a death claim.
  IC 27-1-12-6(10)
Company may not prohibit loans in the first policy year, they may not have a minimum loan amount or limit the amount of the loan to a certain percentage of the cash value. The loan value is the cash value minus the cost of insurance and the loan interest rate to the next anniversary. (Note: The exception is on variable universal life, it may have a minimum loan amount and the loan value may be up to 90% of the cash value).   IC 27-1-12-6(8)
The limit on incontestability is two (2) years maximum.   IC 27-1-12-6(3)
Misstatement of Age should state that the proceeds will be what the premium received would have purchased at the correct age or sex.   IC 27-1-12-6(4)
There should be a grace period provision of thirty (30) days.