Section 1405.20  Illinois Guidelines For Filing and Approval of Life and Annuity Forms

Following are some general requirements which should be helpful to industry personnel involved in drafting and filing policy forms.

a)         Policy Forms

1)         "Policy Form" Defined.  The term "policy form" as used in these rules is defined in the Insurance Code.  It means any policy, certificate, endorsement, rider, by-law or other matter incorporated by reference or application blank. It does not include riders or endorsements issued or made at the request of the individual policyholder relating to the manner of distribution of benefits or to the reservation of rights and benefits under a life insurance policy.

2)         Policy forms exempt from filing are as follows:

A)        Notice Regarding Replacement (see 50 Ill. Adm. Code 917.70).

B)        Policy Summaries.

C)        Buyer's Guides (see 50 Ill. Adm. Code 930.40(a)).

3)         Policy forms prohibited pursuant to Sections 143(1) and 224(1)(c) of the Illinois Insurance Code (Ill. Rev. Stat. 1987, ch. 73, pars. 755(1) and 836(1)(c)).

A)        Certificates issued in lieu of a duplicate insurance policy.

B)        Forms containing provisions excluding scuba diving, hang-gliding, motorcycle racing, race car or stock car racing, or hazardous sports.

b)         Form Numbers

1)         Each "policy form" must be designated by a suitable form number which may be made up of numerical digits or letters, or both, in the lower left-hand corner of the first page.  The form number shall be sufficient to distinguish the basic form from all others used by the insurer.  Edition date and/or designation of a state where a special edition is required is permitted in such space, and if printed as a continuation of the form number, will be considered a part thereof.  The appearance of a company's stock number and/or printing date in proximity to the form number is permitted.

A)        Where a descriptive title is in close proximity to the form number, it will not be considered a part of that number for approval purposes unless inclusion is requested by the company.

B)        Refer to Section 1405.80 of this Part for instructions relating to form numbers when filing a policy on an insert page basis.

2)         Since the form number must be sufficient to identify any form which has been issued by a company, each submission must bear a unique number. A recently approved but unissued form may be corrected or changed by filing a substitute page or form which may retain the original form number.

c)         General Form Requirements pursuant to Section 149 of the Illinois Insurance Code (Ill. Rev. Stat. 1987, ch. 73, par. 761).

1)         The name of the company shall appear on the form.

2)         Policy shall show location of the Home Office and Principal Office, if different.

3)         Policy shall indicate the Issue or Policy Date and the Effective Date, if different.

4)         Rubber stamp deletions, mechanical overprints or paste-over "stickers" are permitted with the prior approval of the Department (For rubber stamp endorsements, see Section 1405.20(d)(8) of this Part).

5)         The name or title of any policy or class of policies may not misrepresent the nature thereof.  The title shall be specifically descriptive such as: Term, Annuity, Endowment or Whole Life.  Inclusion of words such as "special", "select", "preferred" or "inflation" are not allowed in the title as they imply receiving something not normally offered in a life policy in violation of Sections 143(1) and 149 of the Illinois Insurance Code.

d)         Preparation of Forms

1)         "Policy Forms" must be submitted in duplicate.

2)         "Policy Forms" submitted for formal approval shall be submitted in the form intended for actual issue.  Typewritten forms may be used only for single cases or when their use will be too infrequent to justify other preparation.

3)         All blank spaces of each policy form must be filled in (completed in John Doe manner).  The purpose and use of the form shall be explained in the submission letter.

4)         When submitting a "policy form" to which a copy of the application will be attached when issued, a copy of the application shall be attached to the policy form, or if previously approved, reference must be made to approval date and form number.

5)         On applicable life policy forms, nonforfeiture values, if any, for the age and plan of insurance used in filling in the form, must be included.

6)         On group forms, variable material may be indicated for language which may vary from case to case.  Variable material shall consist of benefit provisions and benefit levels.

7)         Procedures for filing and approval without review of life policies as well as the completion of Certifications of Compliance are set forth in 50 Ill. Adm. Code 916.

8)         All rubber stamp endorsements should be submitted for approval, in duplicate, under the insurer's letterhead and filed in accordance with 50 Ill. Adm. Code 916.

9)         Combination forms (for Life and Accident and Health) shall be submitted in duplicate to both the Life Unit and the Accident and Health Unit of the Product Evaluation Section.

10)         Use of a 'pilot' form is recommended before submission of an entirely new series of policy forms.

e)         Letters of Submission

            The letter of submission must be in duplicate, signed by a representative of the company authorized to submit forms for filing or approval and must contain the following information:

1)         The letterhead of the company shall show the name of the company for whom the forms are being submitted.

2)         The identifying form number of each form submitted.

3)         If the form is a new one, not replacing an existing form, a statement to that effect.

4)         If the form is intended to supersede another approved form, the form number and the approval date of the superseded form must be stated together with a statement as to any material changes.

5)         If a company submits a form which has been previously submitted, but has not been approved, the company shall advise the Department of the date of submission or disapproval of the previously submitted form and any material changes.

6)         If the form is other than a policy or contract, give the form number of the policy or contract form or forms with which it will be used, or, if for more general use, describe the type or group of such forms.

7)         When a form is approved, one copy of the submission letters will be stamped "approved" and returned to the company.  To expedite individual approval, the Department of Insurance (Department) encourages companies to submit separate submission letters with each form submitted.

8)         Reference to previously approved forms shall provide date of approval of such forms.

(Source:  Amended at 12 Ill. Reg. 22184, effective December 16, 1988)