Variable Annuity Model Regulation

What this document is

Variable Annuity Model Regulation is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NAIC Model #250: Section 10 (Qualifications of Agents)

  “evidence that the person holds any license or authorization that may be required for the solicitation or sale of variable annuity contracts by any federal or state securities law.”

• NAIC Model #250: Section 2 (Definitions)

  “annuity benefits that vary according to the investment experience of a separate account or accounts maintained by the insurer as to the policy or contract, as provided for in Section [insert applicable section] of the laws of this state.”

• NAIC Model #250: Section 4 (Separate Account)

  “Amounts allocated to a separate account and its accumulations may be invested and reinvested without regard to any requirements or limitations prescribed by the laws of this state governing the investments of life insurance companies;”

• NAIC Model #250: Section 4C (Separate Account)

  “To the extent provided under the applicable contracts, that portion of the assets of a separate account equal to the reserves and other contract liabilities with respect to the account shall not be chargeable with liabilities arising out of any other business the company may conduct.”

• NAIC Model NAIC 250: Section 7G (Nonforfeiture Benefits)

  “The present value shall be computed using the mortality table, if any, and the guaranteed or assumed interest rates used in calculating the annuity payments.”

• NAIC Model NAIC 250: Section 8A (Required Reports)

  “A company issuing individual variable annuities shall mail to the contractholder at least once in each contract year after the first at his or her last address known to the company, a statement or statements reporting the investments held in the separate account.”

• NAIC Model NAIC 250: Section 6A (Variable Annuity Contracts)

  “A variable annuity 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 variable benefits.”

• NAIC Variable Annuity Model Regulation § 3A (Qualification of Insurance Companies To Issue Variable Annuities)

  “A company shall not deliver or issue for delivery variable annuities within this state unless it is licensed or organized to do a life insurance or annuity business in this state and the commissioner is satisfied that its condition or method of operation in connection with the issuance of these...”

• NAIC Variable Annuity Model Regulation § 6A (Variable Annuity Contracts, required contract statement)

  “A contract, including a group contract and a certificate in evidence of variable benefits issued under the contract, shall state that the dollar amount will vary to reflect investment experience and shall contain on its first page a clear statement to the effect that the benefits of the contract...”

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