Ins 2.40(1)(1) Purpose. This section implements and interprets s. 632.66, Stats., by authorizing life insurers to issue annuity contracts without life contingencies and setting forth the conditions under which these annuity contracts may be issued.

Ins 2.40(2)(2) Scope. This section applies to all annuity contracts without life contingencies and which are classified as life and disability insurance under s. Ins 6.75 (1).

Ins 2.40(3)(3) Grant of authority. A life insurer that holds a valid certificate of authority to transact the business of life insurance and annuities in this state may issue in this state annuity contracts without life contingencies, subject to the following conditions:

Ins 2.40(3)(a)(a) No insurer may base the consideration to be paid to the insurer for the annuity contract without a life contingency upon the age or condition of health of the purchaser of the contract or any other person, or on any mortality or morbidity contingencies.

Ins 2.40(3)(b)(b) An insurer shall base the amounts guaranteed to be paid under an annuity contract without a life contingency upon reasonable assumptions as to investment income and expenses, determined in a manner which is equitable to all holders of such contracts.

Ins 2.40(3)(c)(c) An insurer may offer to the public an annuity contract without a life contingency only through licensed intermediaries or directly by the insurer.

Ins 2.40(4)(4) Applicable statutes and administrative rules. An annuity contract without a life contingency is deemed to be an annuity for purposes of chs. 600 to 645, Stats., and all rules adopted thereunder, including, but not limited to, ch. 623, Stats., ss. 631.20 to 631.27, Stats., and ss. Ins 2.07, 2.15, 6.05, and 51.80.

Ins 2.40 HistoryHistory: Cr. Register, December, 1988, No. 396, eff. 1-1-89; correction in (4) made under s. 13.93 (2m) (b) 7., Stats., Register, June, 1999, No. 522.

Ins 2.45(1)(1) Purpose. The purpose of this section is to interpret s. 631.07, Stats., with respect to the insurable interest of charitable organizations. This section does not limit or abridge any insurable interest existing at common law or by statute.

Ins 2.45(2)(2) Scope. This section applies to life insurance policies issued in this state, including, but not limited to, policies in force on March 1, 1994.

Ins 2.45(3)(a)(a) “Charitable organization” means an organization described in 26 USC 170 (c) or 26 USC 501 (c) (3).

Ins 2.45(3)(b)(b) “Life insurance” includes endowment policies and annuities.

Ins 2.45(4)(4) Insurable interest. A charitable organization may be the applicant, owner or beneficiary of a life insurance policy issued on the life of any individual. A charitable organization is deemed to have an insurable interest in the individual. For insurance applied for on or after March 1, 1994, the charitable organization has an insurable interest only if it obtains the consent of the individual in writing or by other means authorized by common law or by statute.

Ins 2.80(1)(a)(a) This section establishes minimum standards under ch. 623, Stats., for life insurance policy reserves by providing tables of select mortality factors, establishing rules concerning a minimum standard for the valuation of plans with non-level premiums or benefits, and establishing rules concerning a minimum standard for the valuation of plans with secondary guarantees.

Ins 2.80(1)(b)(b) The method for calculating basic reserves defined in this section constitutes the commissioner’s reserve valuation method for policies to which this section is applicable.

Ins 2.80(2)(2) Scope. This section applies to all life insurance policies, wherever sold, with or without nonforfeiture values, issued on or after January 1, 2000, subject to the following exceptions and conditions:

Ins 2.80(2)(a)(a) This section does not apply to any individual life insurance policy issued on or after January 1, 2000, if the policy is issued in accordance with and as a result of the exercise of a reentry provision contained in the original life insurance policy of the same or greater face amount that was issued before January 1, 2000 that guarantees the premium rates of the new policy. This section also does not apply to subsequent policies issued as a result of the exercise of such a provision in the new policy.

Ins 2.80(2)(b)(b) This section does not apply to any of the following:

Ins 2.80(2)(b)1.b.b. The specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the CSO valuation tables as defined in sub. (3) (f) and the applicable valuation interest rate.

Ins 2.80(2)(b)1.c.c. The initial surrender charge is not less than 100% of the first year annualized specified premium for the secondary guarantee period.