Bureau of Insurance
OTHER PFR AGENCIES
A02G, A02I, A02.1G, A02.1I, A05G, A05I, A06.1G, A06.1I, A10
|| DESCRIPTION OF REVIEW
| LOCATION OF
STANDARD IN FILING
| Payment of Premiums
|| There shall be a provision relating to the time and place of payment
| Grace Period
||There shall be a grace period of one month but not less than 30
days within which any stipulated payment to the insurer falling due
after the first may be made. The insurer may charge interest at a
rate not to exceed 6% per annum for the number of days of grace elapsing
before payment. The policy must continue in-force during the grace
| Entire Contract
||The contract constitutes the entire contract. If a copy of the application
is endorsed upon or attached to the contract when issued, the contract
and the application shall constitute the entire contract.
||If any statements other than those relating to age, sex, and identity
are required as a condition to issuing the annuity, the contract shall
be incontestable after it has been inforce during the lifetime of
the person for a period of two (2) years from its date of issue, except
for non-payment of stipulated premiums.
| Misstatement of Age or Sex
||If the age or sex of the person has been misstated, the amount payable
of benefits accruing under the contract shall be such as the stipulated
payment or payments would have purchased according to the correct
age or sex.
If the insurer has made any overpayment(s), an interest rate not to
exceed 6% per annum, may be charged against the current or next succeeding
||There shall be a provision that the insurer shall annually ascertain
and apportion any divisible surplus accruing on the contract.
| Right to Examine
||10-Day Free Look
||The contract may be reinstated at any time within one year from
the default in making stipulated payments, unless the CSV has been
paid. All overdue stipulated payments shall be paid with interest
thereon at a rate not to exceed 6% per annum. All other indebtedness
with interest at the policy loan rate and E of I satisfactory to the
insurer may be required.
| Agent Binding Authority
M.R.S.A. §2422 and §2526
||The authorized agent of an insurer shall be regarded as in the place
of the insurer in all respects regarding any insurance affected by
him or her.
| Minimum Values – Effective 5/27/03
Minimum values for nonforfeiture of fixed rate annuities at
any time prior to or at the commencement of annuity payments shall
be calculated based on net considerations equal to 87 1/2 % of gross
considerations and shall be accumulated at an annual rate of interest
calculated as follows:
A. The rate of interest must be the lesser of 3.0% and the five-year
Constant Maturity Treasury Rate as of a certain date, or an average
thereof, which is decreased by 125 basis points provided the resulting
rate is not less than 1.0%.
B. For annuities which provide for recalculation of the rate of
interest, the contract must specify the rate reset date, method
of calculating the new rate, and period of time covered by the new
C. With respect to equity indexed annuities, the calculation in
A, above may be reduced an additional 100 basis points, provided
the additional reduction does not result in a value less than 1.0%
nor greater than the market value of the benefit.
Note: This method of calculating minimum values for nonforfeiture
is optional until May 27, 2005 for insurers filing new fixed rate
annuity forms. During this optional period insurers may continue
to set values using the formula in effect prior to May 27, 2003.
| Exemption from Creditors
Certain policies shall be exempt from claims of creditors and
the rights of beneficiaries and assignees shall be protected.
Note: Limitations on the assignment of rights
| Reversionary Annuities Only:
24-A M.R.S.A. §2518 to §2522 apply except that
under section 2518 the insurer may, at its option, provide for an
equitable reduction of the amount of the annuity payments in settlement
of an overdue payment in lieu of providing for deduction of such
payments from an amount payable upon settlement under the contract.
The contract may be reinstated at any time within three (3) years
from the date of default by making stipulated payments to the insurer,
upon production of E of I satisfactory to the insurer, and upon
condition that all overdue payments and any indebtedness to the
insurer be paid, or within the limits permitted by the then cash
values of the contract, reinstated, with interest as to both payments
and indebtedness at a rate to be specified in the contract but not
exceeding 6% per annum compounded annually.
| Group Annuities Only:
||The interest of any employee, beneficiary, joint or contingent annuitant
in any policy, certificate, or fund in connection with a group annuity
contract (GAC) or pension trust and his/her interest in any payments
or proceeds shall not be subject to any execution, levy, attachment,
garnishment, trustee process, or any other legal or equitable process.
|AIDS and Medical Lifestyle Standards
||The purpose of this rule is to clarify the standards applicable
to written informed consent forms required to be completed by persons
required to take a test for the presence of the antibody to the Human
Immunodeficiency Virus (HIV) or for the Human Immunodeficiency Antigen
by an insurer, nonprofit hospital service organization, nonprofit
medical service organization, or a nonprofit health care plan, to
establish standards for pretest and post-test counseling required
to be provided to persons subject to testing as required by 5 M.R.S.A.
Section 19203-A, and to establish standards for medical and lifestyle
application questions and underwriting.
August 22, 2012
Health Care Provider Tools