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Wisconsin Statutes Insurance (Ch. 600 to 655) § 632.66. Annuity contracts without life contingencies

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The commissioner may by rule authorize insurers to issue annuity contracts which are without life contingencies. If the commissioner authorizes insurers to issue annuity contracts without life contingencies, the commissioner shall promulgate rules regulating those contracts.

(2)(a) In this subsection, “funding agreement” means an annuity without life contingencies that is an agreement for an insurer to accept and accumulate funds and to make one or more payments at future dates in fixed or variable amounts, or both, that are not based on mortality or morbidity contingencies.

(b) A domestic insurer that holds a valid certificate of authority to transact the business of life insurance and annuities in this state may issue a funding agreement if all of the following conditions are met:

1. The domestic insurer's board of directors, or an authorized committee of the board, approves the domestic insurer's plan relating to funding agreements.

2. The commissioner determines that the issuance of funding agreements by the domestic insurer is not adverse to the interests of the policyholders of the domestic insurer, except that no determination from the commissioner is required if the domestic insurer has more than $200 billion in admitted assets. In making a determination under this subdivision, the commissioner shall consider the domestic insurer's specific policy objective and strategies, investment and risk management guidelines, and aggregate maximum limits on the funding agreement business.

3. No amounts may be guaranteed or credited under the funding agreement except upon reasonable assumptions as to investment income and expenses and on a basis equitable to all holders of a given class of the funding agreement.

4. The domestic insurer complies with the form filing requirements under s. 631.20 with respect to the funding agreement.

(c) The issuance or delivery of a funding agreement by an insurer in this state shall constitute doing an insurance business herein.

(d) A domestic insurer may offer funding agreements directly through the domestic insurer and is not required to use licensed intermediaries when marketing funding agreements.

(e) Amounts paid to the domestic insurer, and proceeds applied under optional modes of settlement, under funding agreements may be allocated to one or more separate accounts pursuant to s. 611.24.

(f) Notwithstanding ch. 551, the commissioner has sole authority to regulate the issuance and sale of funding agreements, including the persons selling funding agreements on behalf of insurers.

(g) Notwithstanding s. 601.465(1m) and subch. II of ch. 19, any materials submitted to the commissioner pursuant to an approval under par. (b)2. or pursuant to a request from the commissioner related to a funding agreement shall be held confidential pursuant to s. 601.465(1n).

(h) The commissioner may promulgate rules as necessary for the implementation of this subsection.

Cite this article: - Wisconsin Statutes Insurance (Ch. 600 to 655) § 632.66. Annuity contracts without life contingencies - last updated January 01, 2018 |

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