Insurance Compact Announcement
Please see the announcement from The Compact below:
Insurance Compact Announces Group Annuity Uniform Standards Effective for Filing Use
The Insurance Compact is now accepting group annuity filings – specifically ones used in Pension Risk Transfers and the Guaranteed Interest Contract. These Uniform Standards are operational and companies have the benefit of making one filing for use in 46 Compacting States. This means not only is there one master contract per employer but one uniform annuity certificate per plan participant across Compacting States. Your group annuity business does not want to be left behind as this new product line becomes available through the Insurance Compact.
And the news gets even better – group annuity product filings are eligible for the Expedited Review program. Are you thinking about or working on a group annuity filing? If so now is the time to consider filing with the Insurance Compact rather than filing and managing state-by-state filings and forms. Please use the Pre-Filing Communication process if you have specific questions with respect to these Uniform Standards and filing with the Insurance Compact as you prepare your product forms and provisions. Talk with the individual annuity and life insurance business group(s) affiliated with your company—nearly all individual life and annuity writers already file their products with the Insurance Compact.
The Single Premium Fixed Group Annuity Contract Uniform Standards for Employer Groups applies to immediate or deferred single premium fixed group annuity contracts that are issued to employers, or the trustees of a fund established by an employer. These contracts are used as part of a pension risk transfer. The Uniform Standards apply to single premium, fixed payments where funds are held in the general or in a book value separate account where the amount of the benefits paid under the contract pursuant to the guarantees will not vary with the investment performance of the separate account. The insurance company guarantees all annuity payments purchased under the contract. The contract provisions reflect the provisions of the plan. The contracts may provide benefits to eligible plan participants who are annuitants and their beneficiaries or alternate payees.
The Uniform Standards for Group Guaranteed Interest Contracts for Non-Variable Annuities for Employer Groups applies to guaranteed interest contracts that are issued to employers, or the trustees of a fund or plan established by an employer, that are permitted in the jurisdiction where the contract is delivered or issued for delivery. The Uniform Standards apply to unallocated and allocated contracts, for funds to be held in an insurer’s general or in a book value separate account under contracts which guarantee principal and provide for a specified minimum or a single rate of interest (with or without rate resets, respectively) on amounts deposited by a contractholder and that may or may not have a fixed maturity date specified under the contract. The contracts may provide benefits to eligible plan participants who are annuitants. Note these Uniform Standards do not cover synthetic guaranteed interest contracts.
All components of the group annuity product are filed with the Insurance Compact as there are also the Group Policyholder Application Uniform Standards and the Group Annuity Certificate Uniform Standards for Employer Groups.
If your company or your department has not yet used the Insurance Compact, please contact us for how easy it is to get started filing through this speed-to-market platform.