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The new Montana annuity nonforfeiture law will become effective July
1, 2005.
1)
May insurers file annuity contracts reflecting the new minimum
nonforfeiture standards prior to the effective date of the law on July
1, 2005?
Yes. In fact, insurers are encouraged to
submit their filings under the new law before July 1, 2005 so that our
review may commence. All annuity contracts issued on or after
July 1, 2005 must conform to the new annuity nonforfeiture law.
The annuity contract filings that are
approved before July 1, 2005, under the requirements of the new law in
effect on and after that date must not be issued before July 1, 2005.
2)
May
insurers continue to use the minimum nonforfeiture law in the
applicable prior version of the
Montana Code Annotated (MCA) for annuity contracts
issued before July 1, 2005?
The law in the MCA in effect at the time the
annuity contract was issued will continue to apply to annuity
contracts that were issued before July 1, 2005.
3)
Must insurers replace each currently approved annuity contract
filing with a new filing that complies with the new nonforfeiture law?
Insurers
have the option to file an amendment to each currently approved
annuity filing that falls under the requirements of 33-22-Part 5, MCA,
instead of replacing the entire approved filing with a new filing.
This will be easier for the insurers and will facilitate faster
review by the Department. Insurers
still have the option to replace their previously approved filings
with new filings for policies issued after July 1, 2005, if they wish.
4)
May
insurers file a change to the minimum nonforfeiture value for annuity
contracts issued before July 1, 2005, to conform to the requirements
of the new law?
No.
Annuities issued before July 1, 2005, must follow the law of
the MCA in effect when the annuity was issued.
5)
Must annuity contract filings currently pending review by the
Department filed according to the requirements in the 2003 MCA
be withdrawn and re-filed or amended by the insurer according to the
requirements of the new annuity nonforfeiture law?
Yes.
Insurers must either file a new annuity contract to replace the
previous filing that is still pending, or file an amendment to be
added to the pending filing. A
cover letter provided by the insurer will be required and should
include:
·
The date of the last written correspondence to the insurer from
the Department regarding the pending form;
·
The date of the last response from the insurer regarding the
pending form; and
·
The form number(s) of the filing being withdrawn or amended.
If an insurer has a filing currently pending at
the Department, please contact the Rates and Forms Division to confirm
that review of the pending filing has not been completed.
You should contact
Rosann Grandy
(406) 444-3443 or Pam Forsman
(406) 444-3720 |
