Section Ins 401.10 - Variable Contracts(a) Variable contracts shall include all contracts that do either or both of the following: (1) Place funds in any separate account or accounts maintained by the insurance company for accumulation purposes and where the value of the funds being accumulated may vary according to the investment experience of the separate account or accounts; and(2) Provide annuity benefit payments to annuitants from any separate account or accounts maintained by the insurance company and where the value of the annuity benefit payments can vary according to the investment experience of the separate account or accounts;(b) Individual variable annuity contracts shall be subject to the applicable provisions of RSA 408 and all of the applicable provisions of Ins 401.05 except for Ins 401.05(f) and (g).(c) Group variable annuity contracts shall be subject to the applicable provisions of RSA 408 and all of the provisions of Ins 401.09.(d) Additional provisions required for variable annuity contracts shall include that: (1) Any variable contract providing benefits payable in variable amounts delivered or issued for delivery in this state shall contain a statement of the essential features of the procedures to be followed by the insurance company in determining the dollar amount of such variable benefits;(2) Any such contract, including a group contract and any certificate in evidence of variable benefits issued thereunder, shall state that such dollar amount may vary to reflect investment experience;(3) Any such contract shall contain on its first page a clear statement to the effect that the benefits thereunder are on a variable basis;(4) No individual variable annuity contract calling for the payment of periodic stipulated payments shall be delivered or issued for delivery in this state unless it contains in substance the following provision or provisions: a. A provision that there shall be a grace period of 31 days within which any stipulated payment to the insurer falling due after the first may be made, and during which period of grace the contract shall continue in force;b. For the purposes of a. above, the contract may include a statement of the basis for determining the date as of which any such payment received during the grace period shall be applied to produce the values under the contract arising therefrom;c. A provision that, at any time within 3 years from the date of default, in making periodic stipulated payments to the insurer during the life of the annuitant and unless the cash surrender value has been paid, the contract may be reinstated upon payment to the insurer of such overdue payments as required by the contract and of all indebtedness to the insurer on the contract, including interest;d. For the purposes of c. above, the contract may include a statement of the basis for determining the date as of which the amount to cover such overdue payments and indebtedness shall be applied to produce the values under the contract arising therefrom; ande. A provision specifying the options available in the event of default in a periodic stipulated payment, such as an option to surrender the contract for a cash value as determined by the contract including an option to receive a paid-up annuity if the contract is not surrendered for cash, the amount of which is determined under the terms of the contract by applying the value of the contract at the annuity commencement date;(5) Any variable annuity contract delivered or issued for delivery in this state shall stipulate the investment in increment factors to be used in computing the dollar amount of variable benefits or other variable contractual payments or values thereunder, and may guarantee that expense and/or mortality results shall not adversely affect such dollar amounts; and(6) In the case of an individual variable annuity contract under which the expense and mortality results could adversely affect the dollar amount of benefits, the expense and mortality factors shall be stipulated in the contract as follows: a. In computing the dollar amount of variable benefits or other contractual payments or values under an individual variable annuity contract; 1. The annual net investment increment assumption shall not exceed 5 percent;2. To the extent that the level of benefits may be affected by future mortality results, the mortality factor shall be determined from the Annuity 2000 Mortality Table, available as referenced in Appendix B, or any modification of that table not having a lower life expectancy at any age, or any annuity mortality table adopted after 1996 by the National Association of Insurance Commissioners; and3. "Expense," as used in this paragraph may exclude some or all taxes, as stipulated in the contract.(e) No individual variable life insurance policy shall be delivered or issued for delivery in this state unless it contains in substance the following: (1) A provision that there shall be a grace period of 31 days, within which payment of any premium after the first may be made, and during which grace period the policy shall continue in force;(2) For flexible premium policies, a provision for a grace period beginning on the policy processing day when the total charges authorized by the policy that are necessary to keep the policy in force until the next policy processing day exceed the amounts available under the policy to pay such charges in accordance with the terms of the policy. The grace period shall end on a date not less than 61 days after the mailing of the notice to the policyholder pursuant to Ins 401.10(f), below;(3) A provision that if a claim arises under the policy during the grace period and before the overdue premiums or the deferred premiums of the current policy year, if any, are paid, the amount of such premiums, together with interest not to exceed 6 percent per annum compounded annually, may be deducted from any amount payable under the policy in settlement;(4) A statement of the basis for determining any variation in benefits that may occur as a result of the payment of premium during the grace period;(5) Upon the request of the policyholder, unless the cash surrender value of a variable life insurance policy has been paid out in full or the period of extended insurance has expired, any variable life insurance policy shall be reinstated during the life of the insured anytime within 3 years of the date of default if: a. Evidence of insurability satisfactory to the insurer is provided to the insurer;b. Payment is tendered to the insurer in an amount not to exceed the larger of: 1. The sum of: (i) Overdue premiums, including interest at a rate not to exceed 8 percent per annum, compounded annually; and(ii) Any outstanding policy loans, including interest at a rate that would be permitted under this rule if the policy had not lapsed; or2. One hundred ten percent of the increase in cash surrender value resulting from reinstatement; andc. Premium payments prior to default have been paid for at least 3 years;(6) Any variable annuity contract delivered or issued for delivery in this state shall stipulate the investment in increment factors to be used in computing the dollar amount of variable benefits or other variable contractual payments or values thereunder and may guarantee that expense and/or mortality results shall not adversely affect such dollar amounts; and(7) In the case of an individual variable annuity contract under which the expense and mortality results could adversely affect the dollar amount of benefits, the expense and mortality factors shall be stipulated in the contract as follows: a. In computing the dollar amount of variable benefits or other contractual payments or values under an individual variable annuity contract; 1. The annual net investment increment assumption shall not exceed 5 percent, except;2. To the extent that the level of benefits may be affected by future mortality results, the mortality factor shall be determined from the Annuity 2000 Mortality Table, available as referenced in Appendix B, or any modification of that table not having a lower life expectancy at any age, or any annuity mortality table adopted after 1996 by the National Association of Insurance Commissioners; and3. "Expense," as used in this paragraph may exclude some or all taxes, as stipulated in the contract; andb. Any individual variable life insurance policy delivered or issued for delivery in this state shall stipulate the investment increment factor to be used in computing the dollar amount of variable benefits or other variable contractual payments or values thereunder and shall guarantee that expense and mortality results shall not adversely affect such dollar amounts.(f) For flexible premium policies, a notice shall be sent to the policyholder if the amounts available under the policy on any policy processing day to pay the charges authorized by the policy are less than the amount necessary to keep the policy in force until the next following policy processing day. The notice shall indicate the minimum payment required under the terms of the policy to keep it in force and the length of the grace period for payment of the amount.N.H. Admin. Code § Ins 401.10
Amended by Volume XXXVII Number 15, Filed April 13, 2017, Proposed by #12126, Effective 3/8/2017, Expires 3/8/2027.