Weekly Tip: Individual Life Products

 

Weekly Tips

Individual Life Products

8/21/2012

This week's Weekly Tip will help you be prepared to handle planned or unexpected changes in your company's address and contact information affecting your Compact-approved application.

When filing any insurance application including a life insurance application, companies should take advantage of the variability allowed under the IIPRC Application Standards such as IIPRC-L-I-APP, Individual Life Application Standards.

Bracket the company address and contact information so that if there is a change in the future, even if no change is currently planned, the application can be updated without needing to re-file the form. Also, it is a good idea to bracket the plan information, including the list of riders or additional benefits that may be attached to the policy applied for. This allows the company to add additional benefit riders or remove riders no longer being offered without needing to file a revised application with a new form number. Make sure that any bracketed items are referenced in the Statement of Variability attached to the Supporting Documentation schedule, and include the certification required by paragraph (7) of the General section of the Additional Submission Requirements.

B. VARIABILITY OF INFORMATION

(1) The company may identify items that will be considered variable in the application, but such variability shall be limited to:

(a) The company address and other contact information;

(b) In the case of applications for use by more than one company, the name of each company may be variable only to permit:

(i) Deletion if the company ceases to do new business; and

(ii) Addition of a company authorized to do business by the respective Interstate Insurance Product Regulation Commission member states;

(c) Plan information, including plan marketing name or logo.

The item shall be bracketed or otherwise marked to denote variability. The submission shall include a Statement of Variability that will discuss the conditions under which each variable item may change.

(2) If the company identifies plan information that may be variable in the application, such information shall be consistent with the Statement of Variability that has been or is being filed for use with the respective policy form. For variable life insurance plans, items such as the Separate Accounts and Funds available under the plan may be identified as variable to the extent allowed by the policy form.

For more information regarding the filing process for individual life products, we would encourage you to participate in the webinar that is scheduled for Thursday, August 23rd. The topic for this webinar will be individual life product filing submissions. This will be a perfect opportunity to ask any questions that you may have related to individual life filings. More information regarding this webinar may be found on the IIPRC Event Calendar located on the IIPRC website.

If you have any questions about any of the information that is in this email, please contact the IIRPC Office for additional information and assistance.