AN
ACT Relating to life insurance illustrations; adding a new chapter to Title 48
RCW; prescribing penalties; and providing an effective date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
purpose of this chapter is to provide standards for life insurance policy
illustrations that will protect consumers and foster consumer education by
providing illustration formats, prescribing standards to be followed when
illustrations are used, and specifying the disclosures that are required in
connection with illustrations. The goals of these standards are to ensure that
illustrations do not mislead purchasers of life insurance and to make
illustrations more understandable. Insurers will, as far as possible,
eliminate the use of footnotes and caveates and define terms used in the
illustration in language that would be understood by a typical person within
the segment of the public to which the illustration is directed.
NEW
SECTION. Sec. 2. This
chapter applies to all group and individual life insurance policies and
certificates except:
(1)
Variable life insurance;
(2)
Individual and group annuity contracts;
(3)
Credit life insurance; or
(4)
Life insurance policies with no illustrated death benefits on any individual
exceeding ten thousand dollars.
NEW
SECTION. Sec. 3. The
definitions in this section apply throughout this chapter unless the context
requires otherwise.
(1)
"Actuarial standards board" means the board established by the
American academy of actuaries to develop and adopt standards of actuarial
practice.
(2)
"Contract premium" means the gross premium that is required to be
paid under a fixed premium policy, including the premium for a rider for which
benefits are shown in the illustration.
(3)
"Currently payable scale" means a scale of nonguaranteed elements in
effect for a policy form as of the preparation date of the illustration or
declared to become effective within the next ninety-five days.
(4)
"Disciplined current scale" means a scale of nonguaranteed elements
constituting a limit on illustrations currently being illustrated by an insurer
that is reasonably based on actual recent historical experience, as certified
annually by an illustration actuary designated by the insurer. Further
guidance in determining the disciplined current scale as contained in standards
established by the actuarial standards board may be relied upon if the
standards:
(a)
Are consistent with all provisions of this chapter;
(b)
Limit a disciplined current scale to reflect only actions that have already
been taken or events that have already occurred;
(c)
Do not permit a disciplined current scale to include any projected trends of
improvements in experience or any assumed improvements in experience beyond the
illustration date; and
(d)
Do not permit assumed expenses to be less than minimum assumed expenses.
(5)
"Generic name" means a short title descriptive of the policy being
illustrated, such as whole life, term life, or flexible premium adjustable
life.
(6)
"Guaranteed elements" means the premiums, benefits, values, credits,
or charges under a policy of life insurance that are guaranteed and determined
at issue.
(7)
"Nonguaranteed elements" means the premiums, benefits, values,
credits, or charges under a policy of life insurance that are not guaranteed or
not determined at issue.
(8)
"Illustrated scale" means a scale of nonguaranteed elements currently
being illustrated that is not more favorable to the policy owner than the
lesser of:
(a)
The disciplined current scale; or
(b)
The currently payable scale.
(9)
"Illustration" means a presentation or depiction that includes
nonguaranteed elements of a policy of life insurance over a period of years and
that is one of the three types defined below:
(a)
"Basic illustration" means a ledger or proposal used in the sale of a
life insurance policy that shows both guaranteed and nonguaranteed elements.
(b)
"Supplemental illustration" means an illustration furnished in
addition to a basic illustration that meets the applicable requirements of this
chapter, and that may be presented in a format differing from the basic
illustration, but may only depict a scale of nonguaranteed elements that is
permitted in a basic illustration.
(c)
"In-force illustration" means an illustration furnished at any time
after the policy that it depicts has been in force for one year or more.
(10)
"Illustration actuary" means an actuary meeting the requirements of
section 10 of this act who certifies to illustrations based on the standard of
practice adopted by the actuarial standards board.
(11)
"Lapse-supported illustration" means an illustration of a policy form
failing the test of self-supporting, as defined in this section, under a
modified persistency rate assumption using persistency rates underlying the
disciplined current scale for the first five years and one hundred percent
policy persistency thereafter.
(a)
"Minimum assumed expenses" means the minimum expenses that may be
used in the calculation of the disciplined current scale for a policy form.
The insurer may choose to designate each year the method of determining assumed
expenses for all policy forms from the following:
(i)
Fully allocated expenses;
(ii)
Marginal expenses; and
(iii)
A generally recognized expense table based on fully allocated expenses
representing a significant portion of insurance companies and approved by the
national association of insurance commissioners.
(b)
Marginal expenses may be used only if greater than a generally recognized
expense table. If no generally recognized expense table is approved, fully
allocated expenses must be used.
(12)
"Nonterm group life" means a group policy or individual policies of
life insurance issued to members of an employer group or other permitted group
where:
(a)
Every plan of coverage was selected by the employer or other group
representative;
(b)
Some portion of the premium is paid by the group or through payroll deduction;
and
(c)
Group underwriting or simplified underwriting is used.
(13)
"Policy owner" means the owner named in the policy or the certificate
holder in the case of a group policy.
(14)
"Premium outlay" means the amount of premium assumed to be paid by
the policy owner or other premium payer out-of-pocket.
(15)
"Self-supporting illustration" means an illustration of a policy form
for which it can be demonstrated that, when using experience assumptions
underlying the disciplined current scale, for all illustrated points in time on
or after the fifteenth policy anniversary or the twentieth policy anniversary
for second-or-later-to-die policies, or upon policy expiration if sooner, the
accumulated value of all policy cash flows equals or exceeds the total policy
owner value available. For this purpose, policy owner value will include cash
surrender values and any other illustrated benefit amounts available at the
policy owner's election.
NEW
SECTION. Sec. 4. (1)
Each insurer marketing policies to which this chapter is applicable shall
notify the commissioner whether a policy form is to be marketed with or without
an illustration. For all policy forms being actively marketed on the effective
date of this act, the insurer shall identify in writing those forms and whether
or not an illustration will be used with them. For policy forms filed after
the effective date of this act, the identification shall be made at the time of
filing. Any previous identification may be changed by notice to the
commissioner.
(2)
If the insurer identifies a policy form as one to be marketed without an
illustration, any use of an illustration for any policy using that form prior
to the first policy anniversary is prohibited.
(3)
If a policy form is identified by the insurer as one to be marketed with an
illustration, a basic illustration prepared and delivered in accordance with
this chapter is required, except that a basic illustration need not be provided
to individual members of a group or to individuals insured under multiple lives
coverage issued to a single applicant unless the coverage is marketed to these
individuals. The illustration furnished an applicant for a group life
insurance policy or policies issued to a single applicant on multiple lives may
be either an individual or composite illustration representative of the
coverage on the lives of members of the group or the multiple lives covered.
(4)
Potential enrollees of nonterm group life subject to this chapter shall be
furnished a quotation with the enrollment materials. The quotation shall show
potential policy values for sample ages and policy years on a guaranteed and
nonguaranteed basis appropriate to the group and the coverage. This quotation
is not considered an illustration for purposes of this chapter, but all
information provided shall be consistent with the illustrated scale. A basic
illustration shall be provided at delivery of the certificate to enrollees for
nonterm group life who enroll for more than the minimum premium necessary to
provide pure death benefit protection. In addition, the insurer shall make a
basic illustration available to any nonterm group life enrollee who requests
it.
NEW
SECTION. Sec. 5. (1)
An illustration used in the sale of a life insurance policy shall satisfy the
applicable requirements of this chapter, be clearly labeled "life
insurance illustration," and contain the following basic information:
(a)
Name of insurer;
(b)
Name and business address of producer or insurer's authorized representative,
if any;
(c)
Name, age, and sex of proposed insured, except where a composite illustration
is permitted under this chapter;
(d)
Underwriting or rating classification upon which the illustration is based;
(e)
Generic name of policy, the company product name, if different, and form
number;
(f)
Initial death benefit; and
(g)
Dividend option election or application of nonguaranteed elements, if
applicable.
(2)
When using an illustration in the sale of a life insurance policy, an insurer
or its producers or other authorized representatives shall not:
(a)
Represent the policy as anything other than life insurance policy;
(b)
Use or describe nonguaranteed elements in a manner that is misleading or has
the capacity or tendency to mislead;
(c)
State or imply that the payment or amount of nonguaranteed elements is
guaranteed;
(d)
Use an illustration that does not comply with the requirements of this chapter;
(e)
Use an illustration that at any policy duration depicts policy performance more
favorable to the policy owner than that produced by the illustrated scale of
the insurer whose policy is being illustrated;
(f)
Provide an applicant with an incomplete illustration;
(g)
Represent in any way that premium payments will not be required for each year
of the policy in order to maintain the illustrated death benefits, unless that
is the fact;
(h)
Use the term "vanish" or "vanishing premium," or a similar
term that implies the policy becomes paid up, to describe a plan for using
nonguaranteed elements to pay a portion of future premiums;
(i)
Except for policies that can never develop nonforfeiture values, use an
illustration that is "lapse-supported"; or
(j)
Use an illustration that is not "self-supporting."
(3)
If an interest rate used to determine the illustrated nonguaranteed elements is
shown, it shall not be greater than the earned interest rate underlying the
disciplined current scale.
NEW
SECTION. Sec. 6. (1) A
basic illustration shall conform with the following requirements:
(a)
The illustration shall be labeled with the date on which it was prepared.
(b)
Each page, including any explanatory notes or pages, shall be numbered and show
its relationship to the total number of pages in the illustration (for example,
the fourth page of a seven-page illustration shall be labeled "page 4 of 7
pages").
(c)
The assumed dates of payment receipt and benefit payout within a policy year
shall be clearly identified.
(d)
If the age of the proposed insured is shown as a component of the tabular
detail, it shall be issue age plus the numbers of years the policy is assumed
to have been in force.
(e)
The assumed payments on which the illustrated benefits and values are based
shall be identified as premium outlay or contract premium, as applicable. For
policies that do not require a specific contract premium, the illustrated
payments shall be identified as premium outlay.
(f)
Guaranteed death benefits and values available upon surrender, if any, for the
illustrated premium outlay or contract premium shall be shown and clearly
labeled guaranteed.
(g)
If the illustration shows any nonguaranteed elements, they cannot be based on a
scale more favorable to the policy owner than the insurer's illustrated scale
at any duration. These elements shall be clearly labeled nonguaranteed.
(h)
The guaranteed elements, if any, shall be shown before corresponding
nonguaranteed elements and shall be specifically referred to on any page of an
illustration that shows or describes only the nonguaranteed elements (for
example, "see page one for guaranteed elements").
(i)
The account or accumulation value of a policy, if shown, shall be identified by
the name this value is given in the policy being illustrated and shown in close
proximity to the corresponding value available upon surrender.
(j)
The value available upon surrender shall be identified by the name this value
is given in the policy being illustrated and shall be the amount available to
the policy owner in a lump sum after deduction of surrender charges, policy
loans, and policy loan interest, as applicable.
(k)
Illustrations may show policy benefits and values in graphic or chart form in
addition to the tabular form.
(l)
Any illustration of nonguaranteed elements shall be accompanied by a statement
indicating that:
(i)
The benefits and values are not guaranteed;
(ii)
The assumptions on which they are based are subject to change by the insurer;
and
(iii)
Actual results may be more or less favorable.
(m)
If the illustration shows that the premium payer may have the option to allow
policy charges to be paid using nonguaranteed values, the illustration must
clearly disclose that a charge continues to be required and that, depending on
actual results, the premium payer may need to continue or resume premium
outlays. Similar disclosure shall be made for premium outlay of lesser amounts
or shorter durations than the contract premium. If a contract premium is due,
the premium outlay display shall not be left blank or show zero unless
accompanied by an asterisk or similar mark to draw attention to the fact that
the policy is not paid up.
(n)
If the applicant plans to use dividends or policy values, guaranteed or
nonguaranteed, to pay all or a portion of the contract premium or policy
charges, or for any other purpose, the illustration may reflect those plans and
the impact on future policy benefits and values.
(2)
A basic illustration shall include the following:
(a)
A brief description of the policy being illustrated, including a statement that
it is a life insurance policy;
(b)
A brief description of the premium outlay or contract premium, as applicable,
for the policy. For a policy that does not require payment of a specific
contract premium, the illustration shall show the premium outlay that must be
paid to guarantee coverage for the term of the contract, subject to maximum
premiums allowable to qualify as a life insurance policy under the applicable
provisions of the internal revenue code;
(c)
A brief description of any policy features, riders, or options, guaranteed or
nonguaranteed, shown in the basic illustration and the impact they may have on
the benefits and values of the policy;
(d)
Identification and a brief definition of column headings and key terms used in
the illustration; and
(e)
A statement containing in substance the following: "This illustration
assumes that the currently illustrated, nonguaranteed elements will continue
unchanged for all years shown. This is not likely to occur, and actual results
may be more or less favorable than those shown."
(3)(a)
Following the narrative summary, a basic illustration shall include a numeric
summary of the death benefits and values and the premium outlay and contract
premium, as applicable. For a policy that provides for a contract premium, the
guaranteed death benefits and values shall be based on the contract premium.
This summary shall be shown for at least policy years five, ten, and twenty and
at age seventy, if applicable, on the three bases shown below. For multiple
life policies the summary shall show policy years five, ten, twenty, and
thirty.
(i)
Policy guarantees;
(ii)
Insurer's illustrated scale;
(iii)
Insurer's illustrated scale used but with the nonguaranteed elements reduced as
follows:
(A)
Dividends at fifty percent of the dividends contained in the illustrated scale
used;
(B)
Nonguaranteed credited interest at rates that are the average of the guaranteed
rates and the rates contained in the illustrated scale used; and
(C)
All nonguaranteed charges, including but not limited to, term insurance charges
and mortality and expense charges, at rates that are the average of the
guaranteed rates and the rates contained in the illustrated scale used.
(b)
In addition, if coverage would cease prior to policy maturity or age one
hundred, the year in which coverage ceases shall be identified for each of the
three bases.
(4)
Statements substantially similar to the following shall be included on the same
page as the numeric summary and signed by the applicant, or the policy owner in
the case of an illustration provided at time of delivery, as required in this
chapter.
(a)
A statement to be signed and dated by the applicant or policy owner reading as
follows: "I have received a copy of this illustration and understand that
any nonguaranteed elements illustrated are subject to change and could be
either higher or lower. The agent has told me they are not guaranteed."
(b)
A statement to be signed and dated by the insurance producer or other
authorized representative of the insurer reading as follows: "I certify
that this illustration has been presented to the applicant and that I have
explained that any nonguaranteed elements illustrated are subject to change. I
have made no statements that are inconsistent with the illustration."
(5)(a)
A basic illustration shall include the following for at least each policy year
from one to ten and for every fifth policy year thereafter ending at age one
hundred, policy maturity, or final expiration; and except for term insurance
beyond the twentieth year, for any year in which the premium outlay and contract
premium, if applicable, is to change:
(i)
The premium outlay and mode the applicant plans to pay and the contract
premium, as applicable;
(ii)
The corresponding guaranteed death benefit, as provided in the policy; and
(iii)
The corresponding guaranteed value available upon surrender, as provided in the
policy.
(b)
For a policy that provides for a contract premium, the guaranteed death benefit
and value available upon surrender shall correspond to the contract premium.
(c)
Nonguaranteed elements may be shown if described in the contract. In the case
of an illustration for a policy on which the insurer intends to credit terminal
dividends, they may be shown if the insurer's current practice is to pay
terminal dividends. If any nonguaranteed elements are shown, they must be
shown at the same durations as the corresponding guaranteed elements, if any.
If no guaranteed benefit or value is available at any duration for which a
nonguaranteed benefit or value is shown, a zero shall be displayed in the
guaranteed column.
NEW
SECTION. Sec. 7. (1) A
supplemental illustration may be provided so long as:
(a)
It is appended to, accompanied by, or preceded by a basic illustration that
complies with this chapter;
(b)
The nonguaranteed elements shown are not more favorable to the policy owner
than the corresponding elements based on the scale used in the basic
illustration;
(c)
It contains the same statement required of a basic illustration that
nonguaranteed elements are not guaranteed; and
(d)
For a policy that has a contract premium, the contract premium underlying the
supplemental illustration is equal to the contract premium shown in the basic
illustration. For policies that do not require a contract premium, the premium
outlay underlying the supplemental illustration shall be equal to the premium
outlay shown in the basic illustration.
(2)
The supplemental illustration shall include a notice referring to the basic
illustration for guaranteed elements and other important information.
NEW
SECTION. Sec. 8.
(1)(a) If a basic illustration is used by an insurance producer or other
authorized representative of the insurer in the sale of a life insurance policy
and the policy is applied for as illustrated, a copy of that illustration,
signed in accordance with this chapter, shall be submitted to the insurer at
the time of policy application. A copy shall also be provided to the
applicant.
(b)
If the policy is issued other than as applied for, a revised basic illustration
conforming to the policy as issued shall be sent with the policy. The revised
illustration shall conform to the requirements of this chapter, be labeled
"revised illustration," and be signed and dated by the applicant or
policy owner and producer or other authorized representative of the insurer no
later than the time the policy is delivered. A copy shall be provided to the
insurer and the policy owner.
(2)(a)
If no illustration is used by an insurance producer or other authorized
representative in the sale of a life insurance policy, or if the policy is
applied for other than as illustrated, the producer or representative shall
certify to that effect in writing on a form provided by the insurer. On the
same form the applicant shall acknowledge that no illustration conforming to
the policy applied for was provided and shall further acknowledge an
understanding that an illustration conforming to the policy as issued will be
provided no later than at the time of policy delivery. This form shall be
submitted to the insurer at the time of policy application.
(b)
If the policy is issued, a basic illustration conforming to the policy as
issued shall be sent with the policy and signed no later than the time the
policy is delivered. A copy shall be provided to the insurer and the policy
owner.
(3)(a)
Where a computer screen illustration is used that cannot be printed out during
use, the producer shall certify in writing on a form provided by the insurer
that a computer screen illustration was displayed. Such form shall require the
producer to provide, as applicable, the generic name of the policy and any
riders illustrated, the guaranteed and nonguaranteed interest rates
illustrated, the number of policy years illustrated, the initial death benefit,
the premium amount illustrated, and the assumed number of years of premiums.
On the same form the applicant shall acknowledge that an illustration matching
that which was displayed on the computer screen will be provided no later than
the time of policy delivery. A copy of this signed form shall be provided to
the applicant at the time it is signed.
(b)
If the policy is issued, a basic illustration conforming to the policy as
issued shall be sent with the policy and signed by the policy owner no later
than the time the policy is delivered. A copy shall be provided to the policy
owner and retained by the insurer.
(c)
If a computer screen illustration is used that can be printed during use, a
copy of that illustration, signed in accordance with this chapter, shall be
submitted to the insurer at the time of policy application. A copy shall also
be provided to the applicant.
(d)
If the basic illustration or revised illustration is sent to the applicant or
policy owner by mail from the insurer, it shall include instructions for the
applicant or policy owner to sign the duplicate copy of the numeric summary
page of the illustration for the policy issued and return the signed copy to
the insurer. The insurer's obligation under this subsection is satisfied if it
can demonstrate that it has made a diligent effort to secure a signed copy of
the numeric summary page. The requirement to make a diligent effort shall be
deemed satisfied if the insurer includes in the mailing a self-addressed, postage
prepaid envelope with instructions for the return of the signed numeric summary
page.
(4)
A copy of the basic illustration and a revised basic illustration, if any,
signed as applicable, along with any certification that either no illustration
was used or that the policy was applied for other than as illustrated, shall be
retained by the insurer until three years after the policy is no longer in
force. A copy need not be retained if no policy is issued.
NEW
SECTION. Sec. 9. (1)
In the case of a policy designated as one for which illustrations will be used,
the insurer shall provide each policy owner with an annual report on the status
of the policy that shall contain at least the following information:
(a)
For universal life policies, the report shall include the following:
(i)
The beginning and end date of the current report period;
(ii)
The policy value at the end of the previous report period and at the end of the
current report period;
(iii)
The total amounts that have been credited or debited to the policy value during
the current report period, identifying each type, such as interest, mortality,
expense, and riders;
(iv)
The current death benefit at the end of the current report period on each life
covered by the policy;
(v)
The net cash surrender value of the policy as of the end of the current report
period;
(vi)
The amount of outstanding loans, if any, as of the end of the current report
period; and
(vii)
For fixed premium policies: If, assuming guaranteed interest, mortality, and
expense loads and continued scheduled premium payments, the policy's net cash
surrender value is such that it would not maintain insurance in force until the
end of the next reporting period, a notice to this effect shall be included in
the report; or
(viii)
For flexible premium policies: If, assuming guaranteed interest, mortality,
and expense loads, the policy's net cash surrender value will not maintain
insurance in force until the end of the next reporting period unless further
premium payments are made, a notice to this effect shall be included in the
report.
(b)
For all other policies, where applicable:
(i)
Current death benefit;
(ii)
Annual contract premium;
(iii)
Current cash surrender value;
(iv)
Current dividend;
(v)
Application of current dividend; and
(vi)
Amount of outstanding loan.
(c)
Insurers writing life insurance policies that do not build nonforfeiture values
shall only be required to provide an annual report with respect to these
policies for those years when a change has been made to nonguaranteed policy
elements by the insurer.
(2)
If the annual report does not include an in-force illustration, it shall
contain the following notice displayed prominently: "IMPORTANT POLICY
OWNER NOTICE: You should consider requesting more detailed information about
your policy to understand how it may perform in the future. You should not
consider replacement of your policy or make changes in your coverage without
requesting a current illustration. You may annually request, without charge,
such an illustration by calling (insurer's phone number), writing to (insurer's
name) at (insurer's address) or contacting your agent. If you do not receive a
current illustration of your policy within 30 days from your request, you
should contact your state insurance department." The insurer may vary the
sequential order of the methods for obtaining an in-force illustration.
(3)
Upon the request of the policy owner, the insurer shall furnish an in-force
illustration of current and future benefits and values based on the insurer's
present illustrated scale. This illustration shall comply with the
requirements of sections 5 (1) and (2) and 6 (1) and (5) of this act. No
signature or other acknowledgment of receipt of this illustration shall be
required.
(4)
If an adverse change in nonguaranteed elements that could affect the policy has
been made by the insurer since the last annual report, the annual report shall
contain a notice of that fact and the nature of the change prominently
displayed.
NEW
SECTION. Sec. 10. (1)
The board of directors of each insurer shall appoint one or more illustration
actuaries.
(2)
The illustration actuary shall certify that the disciplined current scale used
in illustrations is in conformity with the actuarial standard of practice for compliance
with the national association of insurance commissioners model regulation on
life insurance illustrations adopted by the actuarial standards board, and that
the illustrated scales used in insurer-authorized illustrations meet the
requirements of this chapter.
(3)
The illustration actuary shall:
(a)
Be a member in good standing of the American academy of actuaries;
(b)
Be familiar with the standard of practice regarding life insurance policy
illustrations;
(c)
Not have been found by the commissioner, following appropriate notice and
hearing to have:
(i)
Violated any provision of, or any obligation imposed by, the insurance law or
other law in the course of his or her dealings as an illustration actuary;
(ii)
Been found guilty of fraudulent or dishonest practices;
(iii)
Demonstrated his or her incompetence, lack of cooperation, or untrustworthiness
to act as an illustration actuary; or
(iv)
Resigned or been removed as an illustration actuary within the past five years
as a result of acts or omissions indicated in any adverse report on examination
or as a result of a failure to adhere to generally acceptable actuarial
standards;
(d)
Not fail to notify the commissioner of any action taken by a commissioner of
another state similar to that under (c) of this subsection;
(e)
Disclose in the annual certification whether, since the last certification, a
currently payable scale applicable for business issued within the previous five
years and within the scope of the certification has been reduced for reasons
other than changes in the experience factors underlying the disciplined current
scale. If nonguaranteed elements illustrated for new policies are not
consistent with those illustrated for similar in-force policies, this must be
disclosed in the annual certification. If nonguaranteed elements illustrated
for both new and in-force policies are not consistent with the nonguaranteed
elements actually being paid, charged, or credited to the same or similar
forms, this must be disclosed in the annual certification; and
(f)
Disclose in the annual certification the method used to allocate overhead
expenses for all illustrations:
(i)
Fully allocated expenses;
(ii)
Marginal expenses; or
(iii)
A generally recognized expense table based on fully allocated expenses
representing a significant portion of insurance companies and approved by the
national association of insurance commissioners.
(4)(a)
The illustration actuary shall file a certification with the board of directors
and with the commissioner:
(i)
Annually for all policy forms for which illustrations are used; and
(ii)
Before a new policy form is illustrated.
(b)
If an error in a previous certification is discovered, the illustration actuary
shall notify the board of directors of the insurer and the commissioner
promptly.
(5)
If an illustration actuary is unable to certify the scale for any policy form
illustration the insurer intends to use, the actuary shall notify the board of
directors of the insurer and the commissioner promptly of his or her inability
to certify.
(6)
A responsible officer of the insurer, other than the illustration actuary,
shall certify annually:
(a)
That the illustration formats meet the requirements of this chapter and that
the scales used in insurer-authorized illustrations are those scales certified
by the illustration actuary; and
(b)
That the company has provided its agents with information about the expense
allocation method used by the company in its illustrations and disclosed as
required in subsection (3)(f) of this section.
(7)
The annual certifications shall be provided to the commissioner each year by a
date determined by the insurer.
(8)
If an insurer changes the illustration actuary responsible for all or a portion
of the company's policy forms, the insurer shall notify the commissioner of
that fact promptly and disclose the reason for the change.
NEW
SECTION. Sec. 11. In
addition to any other penalties provided by law, an insurer or producer that
violates a requirement of this chapter is guilty of a violation of RCW
48.30.010(1).
NEW
SECTION. Sec. 12. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW
SECTION. Sec. 13. This
act takes effect January 1, 1998, and applies to policies sold on or after
January 1, 1998.
NEW
SECTION. Sec. 14.
Sections 1 through 11 of this act constitute a new chapter in Title 48 RCW.
