Section 210-80-006 - Required Contract Provisions and Filing Requirements006.01 A contract may not be delivered or issued for delivery in this state unless the contract satisfies the requirements of Subsection 006.02 of this section and the issuing insurer has satisfied the requirements of Subsection 006.03 of this section with respect to the contract.006.02 The contract shall:006.02A Provide that the assets to which the contract pertains and for which a contract value record is established will be maintained in a segregated portfolio of a permitted custodial institution;006.02B Grant the insurer the right to perform audits and inspections of assets held in the segregated portfolio from time to time upon reasonable notice to the permitted custodial institution;006.02C Provide the insurer will receive prior notice of and the right to approve any appointment or change of investment managers;006.02D Give a description of how the contract value record will be determined and, where applicable, adjusted by a crediting rate formula;006.02E State the maximum rate period between crediting rate formula recalculations that will be permitted, if any;006.02F Provide the insurer with the right to refuse to recognize any new deposits to the segregated portfolio unless there is a written agreement between the insurer and the contract holder as to the permissible levels and timing of new deposits;006.02G Clearly specify the insurer's obligations under the contract and identify all circumstances under which insurer payments or advances to the contract holder are to be made;006.02H Clearly identify the types of withdrawals made on a market value basis;006.02I Provide either a fixed maturity schedule or a settlement option permitting the contract holder to receive the contract value record over time, provided that no unilateral contract termination event has occurred; and006.02J Include a provision stating, or substantially similar to, the following: "No waiver of remedies by the insurer that is a party to this agreement, following the breach of any contractual provision of the agreement or of the investment guidelines applicable to it, or failure to enforce the provisions or guidelines, which constitutes grounds for termination of this agreement for cause by the insurer, and is not cured within thirty (30) days following the insurer's discovery of it, shall be effective against an insurance director in any future rehabilitation or insolvency proceedings against the insurer unless approved in advance in writing by the director."
006.03 An insurer will satisfy the filing and approval requirements of this section with respect to a contract if the insurer has filed the form of the contract (including application) with the Director and it is accompanied by the items specified in 006.03 A, B, C, D and E of this subsection, and the form has been approved. The contract form may not be used unless approved by the director. 006.03A The form of contract filed for approval shall be accompanied by a statement that the contract meets the conditions of Subsection 006.02 of this section.006.03B The form of contract filed for approval shall be accompanied by a statement: 006.03B(1) Specifying the range of variation of variable contract provisions, if any, that could have a material effect on the risk assumed by the insurer under the contract, including withdrawal methodology, crediting rate formula and termination events;006.03B(2) Describing how fair market value will be determined, including a description of the procedures for valuing securities and other assets that are not publicly traded;006.03B(3) Describing the crediting rate formula, if any, and how it will operate to take into account the difference between the market value record and the contract value record over time; and006.03B(4) Listing events that give the insurer the right to unilaterally and immediately terminate the contract. 006.03C In the case that the plan of operation pertaining to the class of contracts to which the contract belongs: 00.6.03C(1) Has been affirmatively approved by the state in which the issuing insurer is domiciled, the form of contract filed for approval shall be accompanied by a statement indicating receipt of affirmative approval.006.03C(2) In the case that the plan of operation pertaining to the class of contracts to which the contract belongs has been deemed approved in the state in which the issuing insurer is domiciled, the form of contract filed for approval must be accompanied by a statement indicating that the issuing insurer has met the requirements for deemed approval.006.03C(3) Has not been affirmatively approved, either affirmatively or by deemer, in the state in which the issuing insurer is domiciled, the form of contract filed for approval shall be accompanied by a statement of this fact, together with the plan of operation pertaining to the contract. 006.04 The Director may disapprove a contract form filing upon a finding that the form of contract contemplates practices that are unfair or unreasonable or otherwise inconsistent with the provisions of Chapter 44 of the Revised Statutes of Nebraska, including the requirements of this regulation, specifying in what regard the contract form is unfair or unreasonable or otherwise inconsistent with the provisions of Chapter 44 of the Revised Statutes of Nebraska.006.05 The Director may withdraw an approval of a contract form on any basis that would have justified initial disapproval. The Director shall notify the insurer in writing of the reason for the withdrawal of the contract form approval. The insurer may, within 15 days of the withdrawal of approval, make a written request for a hearing before the Director to determine the reasonableness of the Director's action. The hearing shall be held within 30 days of the request.210 Neb. Admin. Code, ch. 80, § 006