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					Product Regulation                             Ohio Department of Insurance
50 W. Town Street
                                                      John R. Kasich – Governor
Suite 300
                                                   Mary Taylor – Lt. Governor/Director
Columbus, OH 43215
(614) 644-2644
Fax (614) 728-5238          Review Requirements Checklist Life Insurance
www.insurance.ohio.gov             Form Filing for Prior Approval

Filing form checklists are not all inclusive and only function as guides. Checklists are summaries, and are not intended as a
Department directive nor a technical legal interpretation. Although efforts are made to ensure that checklists are accurate, they are
subject to change without prior notification.


Line of Business:                 Lines of Insurance:                    Codes:
Life Insurance                    Individual                             L01.000
                                  Group                                  L08.000
                                                                         L031.000, L031.001, L031.002,
                                                                         L031.003, L031.004, L031.005
                                                                         L03G.000, L03G.001, L03G.002,
                                                                         L03G.003, L03G.004, L03G.005, L03G.006,
                                                                         L03G.007
                                                                         L04I
                                                                         L04I.000, L04I.001, L04I.002, L04I.003
                                                                         L04G
                                                                         L04G.000, L04G.001, L04G.002, L04G.003
                                                                         L02I
                                                                         L02I.000
                                                                         L07I.000, L07I.001, L07I.002, L07I.003
                                                                         L02G
                                                                         L02G.000
                                                                         L07G
                                                                         L07G.000, L07G.001, L07G.002, L07G.003
                                                                         L05I
                                                                         L051.000, L051.001, L051.002, L051.003, L05I.004
                                                                         L05G
                                                                         L05G.000, L05G.001, L05G.002, L05G.003, L05G.004
                                                                         L06I
                                                                         L06I.000, L06I.001, L06I.002, L06I.003
                                                                         L06G
                                                                         L06G.000, L06G.001, L06G.002, L06G.003




                               Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                     Page 1 of 8
Ohio Department of Insurance                                          Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                              Approval



Review Requirements                     Reference                Comments
Definitions                             ORC 3915.01              ‘Company’ includes corporations and associations.
Application of law                      ORC 3915.02              Does not apply in part to annuities, industrial policies, fraternal
                                                                 benefit societies, corporations or associations operating assessment
                                                                 plan, except as stated in ORC 3915.
Unauthorized policies not to be used    ORC 3915.03              Policies issued in Ohio must comply with requirements of this
                                                                 chapter.
Preliminary term insurance              ORC 3915.04              The first year‘s insurance under this policy is term insurance.
                                                                 If the premium charged for term insurance under a limited payment
                                                                 life or endowment policy, providing for the payment of premiums
                                                                 (less than 24-years) exceeds charges for whole life, the reserve, shall
                                                                 not be less than a whole life preliminary term policy issued the same
                                                                 year and the same age.
Required Provisions                     ORC 3915.05              No policy shall be issued unless it contains the following provisions:
                                                                 A) All premiums must be payable in advance either at the home
                                                                     office or to an agent of the company;
                                                                 B) Grace period of 1-month
                                                                 C) Policy and application constitute an entire contract and shall be
                                                                     incontestable after 2-years, except for non-payment, etc.
                                                                 D) All statements to be deemed representations and not warranties
                                                                 E) Correction of proceeds due to misstatement of age
                                                                 F) Rights regarding dividends
                                                                 G) Applicability of loans
                                                                 H) Nonforfeiture benefits and cash amount value factor
                                                                 I) A table showing loan values and options available, at least 1st
                                                                     20-years, except for unscheduled changes, specified events or
                                                                     option without changing policy
                                                                 J) Default in premium payments, value of policy is applied to
                                                                     purchase of other insurance, and is in force, and original policy
                                                                     has not been surrendered, policy may be reinstated within 3-
                                                                     years from default, with evidence of insurability and payment of
                                                                     arrears premiums with interest
                                                                 K) Settlement shall be made no later than two months after receipt
                                                                     of proof of death
                                                                 L) Table showing amounts of installments of proceeds
                                                                 M) A title on face and back, correctly describing the policy
Maximum loan interest rate.             ORC 3915.051             Maximum interest 8%.
Interest on policy proceeds             ORC 3915.052             Interest must be paid on proceeds from date of death.
Non-forfeiture benefit and cash value   ORC 3915.06              The policy shall specify the mortality table and rate of interest
                                                                 adopted for computing such reserves. Policy may defer payment for
                                                                 no more then 6-months. Does not apply to term insurance of 20-
                                                                 years or less.
Standard non-forfeiture law             ORC 3915.07              For policies issued before January 1, 1989
                                                                 Required Provisions:
                                                                 1. In the event of premium default, company will grant, a paid-up
                                                                     nonforfeiture benefit with effective date and value as specified.




                               Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                       Page 2 of 8
Ohio Department of Insurance                                          Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                              Approval



Review Requirements                     Reference                Comments
Standard non-forfeiture law             ORC 3915.07              2.   Surrender of policy within 60-days after due date of payment in
(continued)                                                           default after 3-years ordinary insurance or 5-years industrial
                                                                      insurance, company will pay, a cash surrender value as
                                                                      specified
                                                                 3.    Paid-up nonforfeiture benefit as specified unless other option is
                                                                      elected within 60-days after premium default;
                                                                 4.   If all payments are paid on or after 3 rd or 5th anniversary, within
                                                                      30-days the company will provide a cash surrender value.
                                                                 5.   Statement of the mortality table and interest rate used in
                                                                      calculating cash surrender value.
                                                                 6.   Any paid-up nonforfeiture benefit available under the policy in
                                                                      the event of default in a premium payment due on any
                                                                      anniversary shall have a present value at least equal to the cash
                                                                      surrender value.
Standard non-forfeiture law             ORC 3915.07              The company reserves the right to defer payment of any cash
                                                                 surrender value for a period of 6 months after demand therefore with
                                                                 surrender of the policy.
                                                                 Any cash surrender value available in the event of default in
                                                                 premium payment due on any policy anniversary, shall be an
                                                                 amount not less than the excess of the present value, of the future
                                                                 guaranteed benefits which would have been provided for by the
                                                                 policy, including any existing paid-up additions, if there had been no
                                                                 default, over the sum of the then present value.
                                                                 Any paid-up nonforfeiture benefit available under the policy in the
                                                                 event of default in a premium payments due on policy anniversary
                                                                 shall have a present value as of such anniversary at least equal to the
                                                                 cash surrender value, the cash surrender value which would have
                                                                 been required in the absence of the condition that premiums shall
                                                                 have been paid for at least a specified period.
                                                                 The adjusted premiums for any policy shall be calculated on an
                                                                 annual basis and shall be such uniform % of the premiums specified
                                                                 in the policy for each year, excluding some extra premiums. The
                                                                 present value of the future guaranteed benefits provided by the
                                                                 policy;
                                                                 1) 2% of the insurance, if the insurance is uniform or the
                                                                      equivalent uniform amount;
                                                                 2) 40% of the adjusted premium of the 1st year;
                                                                 3) 25% of either the adjusted premium for the 1st year, or the
                                                                      adjusted premium for the whole life policy of the same uniform
                                                                      or equivalent uniform amount
                                                                 No adjusted premium shall be deemed to exceed 4% of the amount
                                                                 of insurance.
                                                                 A company may specify an interest rate not exceeding 4% for
                                                                 calculating cash surrender values and paid-up nonforfeiture benefits
                                                                 in any ordinary or industrial policy.
                                                                 Any cash surrender value and any paid-up nonforfeiture benefit,
                                                                 available under the policy in the event of default in a premium
                                                                 payment due at any time other than the anniversary, shall be
                                                                 calculated with allowance for the lapse of time and the payment of
                                                                 fractional premiums beyond the last anniversary.


                               Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                         Page 3 of 8
Ohio Department of Insurance                                          Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                              Approval



Review Requirements                     Reference                Comments
Standard non-forfeiture law             ORC 3915.07              This section does not apply to any reinsurance, group insurance,
(continued)                                                      pure endowment, annuity or reversionary annuity contract, nor to
                                                                 term policy of uniform amount, of 15 years or less expiring before
                                                                 age 66.
Paid-up non-forfeiture benefit or       ORC 3915.071             No policy of life insurance shall be delivered or issued, unless it
alternative; cash surrender value                                contains in substance the provisions set and are applicable to the
                                                                 plan of insurance or corresponding provisions, which, in the option
                                                                 of the superintendent, are at least favorable to the policyholder.
                                                                 The company will, within 60 days of the due date of a premium,
                                                                 grant a paid-up nonforfeiture benefit. The effective date of the
                                                                 benefit shall be the due date of the unpaid premium.
                                                                 After premiums have been paid for at least 3 full years/ordinary
                                                                 insurance or 5 full years/industrial insurance, the company will,
                                                                 upon surrender within 60-days, pay cash value in light of any paid-
                                                                 up nonforfeiture benefits.
Paid-up non-forfeiture benefit or       ORC 3915.071             A statement of the mortality table, interest rate, and method used in
alternative; cash surrender value                                calculating cash surrender values and paid-up nonforfeiture benefits.
                                                                 A statement that the cash surrender value and paid-up nonforfeiture
                                                                 benefits are not less than those required by Ohio law.
                                                                 An explanation of the manner, in which cash surrender values and
                                                                 paid-up nonforfeiture benefits are increased.
                                                                 Detailed statement of the method of computation of values and
                                                                 benefits has been filed with superintendent.
                                                                 The company may defer the payment of any cash surrender value for
                                                                 a period of 6-months.
                                                                 The adjusted premiums for any policy are calculated on an annual
                                                                 basis and shall be a uniform % of the premiums: 1 % of either the
                                                                 amount of insurance, if uniform in amount, or the average amount of
                                                                 insurance at the beginning of the 1st 10-policy years.
                                                                 125% of the nonforfeiture net level premium, or the average amount
                                                                 of insurance at the beginning of each 1st 10-policy years.
                                                                 For all policies of ordinary insurance issued on the standard basis,
                                                                 all adjusted premiums and present values referred to shall be
                                                                 calculated on the basis of standard ordinary mortality table and a
                                                                 rate of interest not exceeding the nonforfeiture interest rate.
                                                                 The nonforfeiture interest rate for a policy issued in any calendar
                                                                 year is equal to 125% of the valuation interest rate.
                                                                 Guaranteed paid-up nonforfeiture benefits, include any paid-up
                                                                 additions shall be calculated on the basis of an interest rate no lower
                                                                 that that specified in the policy.
                                                                 All other benefits to life insurance and endowment benefits shall be
                                                                 disregarded in ascertaining the cash surrender values and
                                                                 nonforfeiture benefits.
                                                                 This section does not apply to reinsurance, group insurance, pure
                                                                 endowment or annuity or reversionary annuity contracts nor to any
                                                                 term policy.




                               Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                       Page 4 of 8
Ohio Department of Insurance                                          Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                              Approval



Review Requirements                     Reference                Comments
Amount of cash surrender value or       ORC 3915.072             This section applies to all policies of life insurance that are
nonforfeiture factor                                             delivered, or issued in Ohio.
                                                                 Upon default in payment of premium due on a policy anniversary,
                                                                 the cash surrender value shall not differ by more than 2/3 of 1% of
                                                                 the amount of insurance.
                                                                 The basic cash value is equal to the present value on the anniversary
                                                                 of the future guaranteed benefits which would have been provided
                                                                 for by the policy had default not occurred less the present value on
                                                                 the anniversary of the nonforfeiture. The basic cash value may not
                                                                 be less than the value obtained by substituting the adjusted
                                                                 premiums.
                                                                 The nonforfeiture factor is a % of the adjusted premium, for each
                                                                 policy year.
Amount of cash surrender value or       ORC 3915.072             Adjusted premiums and present value shall be calculated using the
nonforfeiture factor                                             same mortality table and interest rate used to demonstrate the policy
                                                                 compliance.
                                                                 Any cash surrender value available upon default in premium other
                                                                 than on a policy anniversary, the amount of any paid-up
                                                                 nonforfeiture benefit available upon default in a premium at any
                                                                 time shall be calculated in accordance with analogous minimum
                                                                 amounts.
Standard nonforfeiture law        for   ORC 3915.073             This section shall be known as the standard nonforfeiture law for
individual deferred annuities                                    individual deferred annuities.
                                                                 This section does not apply to any reinsurance, group annuity
Law changes September 13, 2006                                   purchased under a retirement plan or plan of deferred compensation
                                                                 or maintained by an employer.
                                                                 If a contract provides for a lump sum settlement at maturity, or at
                                                                 any other time, that upon surrender of the contract at or prior to the
                                                                 commencement of any annuity payment, the company will pay in
                                                                 light of any paid-up annuity benefit a cash surrender benefit. The
                                                                 company reserves the right to defer payment for a period of 6-
                                                                 months.
                                                                 A statement that any paid-up annuity, cash surrender, or death
                                                                 benefits that may be available under the contract are not less than
                                                                 the minimum benefits required.
                                                                 The net considerations for a given contract year used to define the
                                                                 minimum nonforfeiture amount shall be an amount not less then
                                                                 zero and shall be equal to the corresponding gross considerations
                                                                 credited to the contract during that contract year less an annual
                                                                 contract charge of $30 and less a collective charge of $1.25
                                                                 consideration credited to the contract during that contract year. 65%
                                                                 of the net consideration for the 1st year and 87-½ % for 2nd and later
                                                                 years.
                                                                 For contracts that do not provide cash surrender benefits, the present
                                                                 value of any paid-up annuity benefit available as a nonforfeiture
                                                                 option at any time prior to maturity shall be not less then the value
                                                                 of the paid-up annuity benefit provided under the contract.
                                                                 Any policy that does not provide cash surrender benefits shall
                                                                 include a statement that such benefits are not provided.




                               Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                       Page 5 of 8
Ohio Department of Insurance                                              Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                                  Approval



Review Requirements                         Reference                Comments
Loan, reserve, and cash surrender           ORC 3915.08              The loan value shall be the reserve at the end of the current policy
value                                                                year, less a sum of not more than 2 ½% of the insured policy and of
                                                                     any dividends. The mortality table and rate of interest adopted for
                                                                     computing such reserve and may further provide such loan may be
                                                                     deferred for not more than 6-months.
Prohibited Provisions                       ORC 3915.09              No policy of life insurance shall be issued or delivered if it contains
                                                                     any of the following:
                                                                                   a. Forfeiture of a policy may not occur because of
                                                                                        failure to repay a loan or to pay interest on such
                                                                                        loan unless the policy includes a provision that
                                                                                        contains a stipulation that no such forfeiture shall
                                                                                        occur until at least 1-month after notice has been
                                                                                        mailed.
                                                                                   b. Legal actions may not be limited to less than 5
                                                                                        years.

Prohibited Provisions                       ORC 3915.09                            c.   Modes of settlement at maturity of less value than
                                                                                        the amount insured on the face value of the policy
                                                                                        plus dividend additions less any indebtedness and
                                                                                        less any premiums that may by the terms of the
                                                                                        policy be deducted.
                                                                                   d.   Policy will be eligible to receive a preferential
                                                                                        benefit or advantage which will not be available
                                                                                        on policies purchased at a future date.

Time extensions          for    premium     ORC 3915.10              Insurers may enter any agreement with the insured to extend the
payments                                                             time for payment of any premium upon the condition that failure to
                                                                     comply with the terms of the agreement will lapse the policy.
Interest added to principal debt            ORC 3915.11              Interest not paid when due shall be added to the principal of the loan
                                                                     and shall bear the interest at the rate specified in the loan agreement.
Exchange, alteration or conversion of       ORC 3915.12              Insurers may exchange, alter, or convert policies at the request of the
policy                                                               policyholder. Effective date may not be prior to that of the original
                                                                     policy. Premium requirements specified.
Filing of forms of policies                 ORC 3915.14              30 days deemer
                                            OAC      3901-6-07       Universal life policies requirements
                                            OAC 3901-6-08            Variable life policies requirements
Policy   provisions        of     foreign   ORC 3915.15              Policies of foreign companies may include any provision required
companies                                                            by the laws of the state in which the company is organized.
                                                                     Policies of domestic companies may include any provision required
                                                                     by the laws of the states in which they are issued.
Accelerated Benefits
Filing of accelerated benefits rider or     ORC 3915.141             When filing such form, must include form number of related policy
endorsement                                                          or contract with which it will be used.
Accelerated benefit definitions             ORC 3915.21              Definition for Accelerated Benefits, Policy, and Qualifying event.
Accelerated application of benefit          ORC 3915.22              The accelerated benefits requirements do not apply to any policy
                                                                     that provides accelerated benefits for the sole purpose of
                                                                     supplementing long-term care insurance as defined in ORC 3923.41.



                                   Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                            Page 6 of 8
Ohio Department of Insurance                                            Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                                Approval



Review Requirements                       Reference                Comments
Calculation of accelerated benefits       ORC 3915.23              Calculations for accelerated benefits are based on mortality risks not
                                                                   morbidity risks.
Type of Produce                           OAC 3901-6-06 (F)        Accelerated benefits are life insurance benefits subject to ORC
                                                                   3915.
Criteria for payment                      OAC 3901-6-06(G)         Lump sum option required; restrictions not permitted on used of the
                                                                   proceeds, will not affect accidental death benefit; must disclose
                                                                   effect on the death benefit.
Disclosures                               OAC 3901-6-06(H)         Must be titled accelerated death benefit; must disclose that benefits
                                                                   may be taxable; must include a written disclosure describing benefit;
                                                                   must disclose premium charge and administrative expense.
Effective date of benefits                OAC 3901-6-06(J)         Must be effective for accidents on the effective date of policy or
                                                                   rider; must be effective for illness no later than 30 days following
                                                                   effective date.
Group Life                                ORC 3917
Group - Defined                           ORC 3917.01              Defines permitted eligible groups, does not include definition for
                                                                   discretionary groups.
Group—Policy restrictions                 ORC 3917.06              Includes required provisions, required delivery of certificate of
                                                                   insurance, right to conversion option, etc.
Group—Assignment of policy rights         ORC 3917.07              Cannot prohibit assignment or limit right to designate beneficiary.
Gender Blended mortality tables           OAC 3901-1-46            Permits individual life insurance policies to provide the same cash
                                                                   surrender values and paid-up nonforfeiture benefits to both men and
                                                                   women by using a blended mortality table.
Guaranty association disclaimer           OAC 3901-1-52            Form and content of disclaimer.
Solicitation of life insurance and/or     OAC 3901-6-01            Requirements for solicitation of life insurance and/or annuity
annuity contracts                                                  contract including advertisements and sales practices.
Life insurance disclosure                 OAC 3901-6-03            Requires the insurer to provide to all prospective purchasers, ad
                                                                   buyer‘s guide and policy summary prior to accepting the applicant‘s
                                                                   initial premium.
Life insurance illustrations              OAC 3901-6-04            Provides illustration formats and prescribes illustrations standards.
Replacement of life insurance and         OAC 3901-6-05            Identifies questions regarding replacement for applications
annuities
Accelerated benefits                      OAC 3901-6-06            Sets out requirements for acceleration benefits including qualifying
                                                                   events, criteria for payment, disclosure requirements, and effective
                                                                   date requirements,
Valuation of life insurance policies      OAC 3901-6-10            Policies containing secondary guarantee provision greater than 5
                                                                   years, policy filing must include actuarial demonstration with a
                                                                   numerical example demonstrating compliance with OAC 3901-6-10.
Flesch Reading         Ease    Minimum    ORC          3902.01-    Minimum score 40.
Standards                                 3902.08




                                 Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                           Page 7 of 8
Ohio Department of Insurance                                          Review Requirements Checklist Life Insurance Form Filing for Prior
                                                                                                                              Approval



Review Requirements                     Reference                Comments
Universal Life                          OAC 3901-6-07            Supplement existing regulations on life insurance policies in order to
                                                                 accommodate the development & issuance of universal insurance
                                                                 plans.
                                                                 Applies to all individual & group certificates except variable life
                                                                 insurance.
                                                                 (D) Definitions
                                                                              1) ‗Account Value‘ means the amount to which
                                                                                  separately identified interest credits and mortality,
                                                                                  expense, or other charges are made under a
                                                                                  universal life policy
                                                                              2) ‗Cash Surrender Value‘ means the account value
                                                                                  less any applicable surrender charges.
                                                                              3) ‗Fixed Premium Universal Life Ins. Policy‘ means
                                                                                  a universal life insurance policy other than a
                                                                                  flexible premium universal life insurance policy.
                                                                              4) ‗Flexible Premium Universal Life Insurance‘
                                                                                  Policy means a universal life insurance policy
                                                                                  which permits the policyowner to vary,
                                                                                  independently of each other, the amount or timing
                                                                                  of one or more premium payments of the amount
                                                                                  of insurance.
                                                                              5) ‗Guaranteed Maturity Fund‘ at any duration is that
                                                                                  amount which, together with future guaranteed
                                                                                  maturity premiums, will mature the policy based
                                                                                  on all policy guarantees at issue.

Applications
Required fraud warning                  ORC 3999.21              ―Any person who, with intent to defraud or knowing that he is
                                                                 facilitating a fraud against an insurer, submits an application or files
                                                                 a claim containing a false or deceptive statement is guilty of
                                                                 insurance fraud.‖
Inquiries related to AIDS or related    ORC 3901.45              Cannot inquire into sexual orientation/AIDS.
conditions
Authorization    for     release   of   ORC 3904.06              Authorization disclosure and permitted validity time period – 30
information                                                      months limit when applying for insurance.
Restrictions on Genetic screening or    ORC 3901.49              Genetic testing. Repeal effective February 9, 2014.
testing
General Requirements                    ORC 3911.01 –            Additional requirements for live insurance companies including
                                        ORC 3911.011             general filing requirements for applications and beneficiaries.




                               Accredited by the National Association of Insurance Commissioners (NAIC)
INS9109 (Rev. 01/2011)                                                                                                        Page 8 of 8

				
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