DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES  
INSURANCE  
REPLACEMENT OF LIFE INSURANCE POLICIES  
(By authority conferred on the commissioner of insurance by sections 210 and 4424(6) of  
Act No. 218 of the Public Acts of 1956, as amended, being SS500.210 and 500.4424(6) of the  
Michigan Compiled Laws)  
REPLACEMENT OF LIFE INSURANCE POLICIES  
R 500.601 Definitions.  
Rule 601. As used in these rules:  
(a) "Conservation" means any attempt by the existing insurer or its agent to continue  
existing life insurance in force when the existing insurer has received the information  
statement as required by R 500.604 from a replacing insurer. A conservation effort does not  
include routine administrative procedures such as late payment reminders, late payment  
offers, or reinstatement offers.  
(b) "Life insurance" does not mean fixed or variable annuity contracts.  
(c) "Replacement of life insurance" means any transaction in which life insurance is to be  
purchased and in which, as part of the transaction, with respect to existing life insurance, any  
of the following has occurred or will occur:  
(i) Lapse, forfeiture, surrender, or termination.  
(ii) Conversion to reduced paid-up insurance, continuation as extended term insurance,  
or a reduction in value by the use of nonforfeiture benefits or other policy values.  
(iii) Amendment to effect a reduction in either benefits or in the term for which coverage  
would otherwise remain in force or for which benefits would be paid.  
(iv) Reissuance with any reduction in cash value.  
(v) Pledging as collateral or subjecting to borrowing, whether in a single loan or under  
a schedule of borrowing over a period of time for amounts in the aggregate exceedng 25% of  
tne loan value set forth in the policy.  
(d) "Sales proposal" means an individualized, written sales aid of any kind, excluding the  
information statement, which is used by an insurer or agent in comparing existing life  
insurance to proposed life  
insurance  
in order to recommend the replacement or  
conservation of existing life insurance. Sales aids of a generally descriptive nature  
which are maintained in the insurer's advertising compliance file shall not be considered a  
sales proposal within the meaning of this definition.  
History: 1979 AC; 1984 AACS.  
Page 1  
R 500.602 Duties of agents.  
Rule 602. (1) A life insurance agent shall obtain, with, or as a part of, each application  
for life insurance, a statement signed by the applicant as to whether the insurance for  
which application is made will replace existing life insurance.  
(2) A life insurance agent shall submit to the insurer, in connection with each  
application for life insurance, a statement as to whether, to the best of his or her  
knowledge, replacement is involved in the transaction.  
(3) If replacement is involved in a transaction, the life insurance agent shall do all of  
the following:  
(a) Obtain, with, or as a part of, each application, a list of all existing life insurance  
policies proposed to be replaced.  
(b) Present to the applicant, not later than at the time of taking the application, a  
completed information statement signed by the agent and a notice to applicants regarding  
replacement of life insurance, in such forms as are prescribed by the commissioner, and  
leave the forms with the applicant for his or her records.  
(c) Leave with the applicant the original or a copy of all sales proposals used for  
presentation to the applicant.  
(d) Have the applicant acknowledge receipt of the completed information statement and  
the notice to applicant regarding replacement of life insurance.  
(e) Submit with the application to the insurer a copy of any sales proposal used, the  
completed information statement, and the name of each insurer which issued any life  
insurance proposed to be replaced.  
(4) Each agent who uses a sales proposal when conserving existing life insurance shall  
do both of the following:  
(a) Leave with the applicant the original or a copy of all sales proposals used in the  
conservation effort.  
(b) Submit to the existing insurer a copy of all sales proposals used in the conservation  
effort.  
History: 1979 AC; 1984 AACS.  
R 500.603 Duties of insurers.  
Rule 603. (1) A life insurer shall inform its field representatives of the requirements of  
this rule and R 500.601, R 500.602, and R 500.604 to R 500.606.  
(2) A life insurer shall require, with, or as a part of, each application for life  
insurance, a statement signed by the applicant as  
application is made will replace existing life insurance.  
to whether the insurance for which  
(3) A life insurer shall require, in connection with each application for life insurance, a  
statement signed by the agent as to whether, to the best of his or her knowledge, replacement  
is involved in the transaction.  
History: 1979 AC; 1984 AACS.  
Page 2  
R 500.604 Duties where replacement involved; notice; filing.  
Rule 604. If a replacement is involved in a transaction, the life insurer shall do all of  
the following:  
(a) Require, with, or as part of each application, a  
list  
prepared  
by the agent  
representing, to the best of his or her knowledge, all of the existing life insurance policies  
proposed to be replaced.  
(b) Obtain all of the following:  
(i) A copy of any sales proposal used.  
(ii) The completed information statement.  
(iii) Proof of receipt by the applicant of the information statement and the notice to  
applicants regarding replacement of life insurance.  
(iv) The name of each insurer which issued any life insurance being replaced.  
(c) Within 3 business days following the receipt of the application in the home or  
regional office of the replacing insurer, or on the day the life insurer issues the proposed  
policy, whichever is sooner, notify the existing insurer and furnish a copy of any sales  
proposal used and a copy of the completed information statement.  
(d) Examine any proposal used and the completed information statement and ascertain  
that the information statement meets the requirements of this rule, R 500.601 to R 500.603,  
R 500.605, and R 500.606.  
(e) Verify the substantial accuracy of information concerning the proposed policy  
furnished to the applicant.  
(f) Maintain in the life insurer's home office, for not less than 3 years or until the  
conclusion of the next succeeding regular examination by the insurance regulatory authority of  
the life insurer's state of domicile, whichever is later, all of the following:  
(i) Copies of any proposal used.  
(ii) The completed information statement.  
(iii) Proof of receipt by the applicant of the information statement and the notice to  
applicants regarding replacement of life insurance.  
(iv) The applicant's signed statement with respect to replacement.  
History: 1979 AC; 1984 AACS.  
R 500.605 Exceptions.  
Rule 605. (1) R 500.602, R 500.603, and R 500.604 do not apply to transactions in  
which the application for the new life insurance is made to the same insurer that issued the  
existing life insurance or to an affiliate of the existing insurer.  
(2) R 500.602, R 500.603, and R 500.604 do not apply to transactions in which the new  
life insurance is to be provided under any of the following plans, if full and complete  
disclosure of all material facts is made to the administrator of any plan to be replaced:  
(a) A group term life insurance policy.  
(b) Policies covering employees of an employer, debtors of a creditor, or members of an  
association or other eligible organization, which policies are distributed on a mass  
merchandising basis and which do not involve direct contact between the covered person and  
the agent.  
(c) Life insurance policies issued in connection with a pension, profit sharing, or other  
benefit plan qualifying for tax-deductibility of premiums.  
Page 3  
(3) R 500.602, R 500.603, and R 500.604 do not apply to transactions in which the  
existing life insurance is a nonconvertible term policy which cannot be renewed and which  
would expire within 5 years after the initiation of the transaction.  
History: 1979 AC; 1984 AACS.  
R 500.606 Penalties.  
Rule 606. An agent who fails to comply with R 500.601, R 500.602, and R 500.605 is  
rebuttably presumed to have given cause for revocation or suspension of his or her license  
or for imposition of a civil penalty for each such failure within the meaning of sections 1242  
and 1244 of Act No.218 of the Public Acts of 1956, as amended, being SS500.1242 and  
500.1244 of the Michigan Compiled Laws.  
History: 1979 AC; 1984 AACS.  
DISCRETIONARY GROUP LIFE INSURANCE AND GROUP LIFE INSURANCE  
R 500.611 Discretionary group life insurance; procedures.  
Rule 1. (1) A group life insurance policy shall not be issued under section 4424 of Act  
No. 218 of the Public Acts of 1956, as amended, being S500.4424 of the Michigan Compiled  
Laws, until the commissioner has issued a certificate of authority to purchase discretionary  
group life insurance to the applicant group and has given written notice of issuance of  
the certificate of authority to the insurer which is to provide the group life insurance.  
(2) Application for a certificate of authority shall be made to the commissioner on  
forms prescribed by the commissioner by the person who is to serve as policyholder for the  
proposed discretionary group. If a trustee is to serve as policyholder, he or she shall  
submit with the application written evidence of his or her authority to act as trustee. If the  
applicant group is party to or results from a trust agreement or a bargaining agreement, a  
copy of the agreement shall be submitted with the application. If the applicant group has a  
constitution or bylaws, or both, a certified copy of each such document shall be submitted  
with the application.  
(3) If the commissioner determines, based upon representations made in the application  
and in the documents accompanying it, that granting permission to the group to  
purchase group life insurance would be consonant with the dictates of public policy as  
expressed in section 4424 of Act No. 218 of the Public Acts of 1956, as amended, being  
S500.4424 of the Michigan Compiled Laws, he or she shall issue a preliminary  
certificate of eligibility, which certificate indicates that the group is qualified to negotiate with  
insurers for group life insurance coverage.  
(4) The policies, certificates, and schedule of rates which an insurer proposes to use in  
providing insurance coverage for a group holding a certificate of eligibility shall be  
submitted to the commissioner by the insurer. If the commissioner determines, after review  
of the materials submitted, that the proposed plan of insurance meets the requirements of  
Act No. 218 of the Public Acts of 1956, as amended, being S500.100 et seq.of the Michigan  
Page 4  
Compiled Laws, he or she shall issue a certificate of authority to the group and shall notify  
the insurer in writing that the certificate has been issued.  
(5) A group holding a certificate of authority shall not make any material change in  
the composition or size of the group and shall not make any material change in the benefits  
provided by the plan of insurance approved by the commissioner, until the commissioner  
has approved the changes in writing. If a change is made without the prior written approval of  
the commissioner, the certificate of authority may be terminated.  
(6) An insurer providing coverage for a group holding a certificate of authority shall file  
any change in its schedule of rates for that coverage with the commissioner not later than 30  
days after the effective date of the change. An insurer shall not issue any group life insurance  
policy for which the premium rate exceeds that determined by the schedule of such group as  
then on file with the commissioner.  
(7) The commissioner may require that each discretionary group holding a certificate of  
authority file a report with the commissioner at the conclusion of each policy year, on a  
form prescribed by the commissioner.  
History: 1979 AC; 1981 AACS.  
R 500.612 Grounds of eligibility.  
Rule 612. (1) The commissioner shall not issue a certificate of eligibility to a group  
having no logical reason for existence except to fraction or partition a risk.  
(3) The commissioner shall not issue a certificate of eligibility if the insurance is not to be  
available to all members of the group who are not excluded under the provisions of the  
insurer's acceptability criteria for the group.  
History: 1979 AC; 1997 AACS.  
R 500.615 Group term life insurance; contributions of certificate holders.  
Rule 615. Whenever the insurance code of 1956 or a rule issued pursuant thereto requires  
that premiums on group term life insurance be paid jointly by the certificate holder and  
some other person, the contract of insurance shall limit the contributions of the certificate  
holders so that the contributions do not exceed 75% of the total premium for the coverage,  
and do not exceed the amounts specified in the following schedule:  
Maximum Contribution to Life  
Premium from Certificate Holder Rate at Which  
Per Thousand of Life Insurance Policy is Written Monthly Weekly  
Standard 60 cents 14 cents Standard plus $1.00 70 cents 16 cents Standard plus $2.00  
75 cents 17 cents Standard plus $3.00 or more 80 cents 18 cents  
History: 1979 AC.  
R 500.616 Rescinded.  
History: 1982 AACS; 2017 AACS.  
Page 5  
VARIABLE CONTRACTS  
R 500.621 Contracts on a variable basis; authorization.  
Rule 621. A contract on a variable basis authorized by section 925 of the insurance code  
of 1956 shall not be delivered or issued for delivery in this state unless the insurer is acting  
under a certificate of authority which specifically provides for issuance of contracts on  
a variable basis, and the insurer has filed with the commissioner, within 30 days after adoption,  
the latest resolution of its board of directors governing the separate account which is to be  
used in connection with the contract on a variable basis.  
History: 1979 AC.  
R 500.622 Certificates of authority; applications.  
Rule 622. Application for a certificate of authority which specifically provides for  
issuance of contracts on a variable basis shall be made to the commissioner in writing and  
shall be accompanied by all of the following:  
(a) A certified copy of the resolution of the insurer's board of directors establishing  
the separate account.  
(b) A written general description of the kinds of variable contracts the insurer intends to  
issue.  
(c) A written general description of the program the insurer intends to use to market the  
contracts.  
History: 1979 AC.  
R 500.623 Certificates of authority; issuance.  
Rule 623. (1) The commissioner shall not issue  
a
certificate of authority which  
specifically provides for issuance of contracts on a variable basis to an insurer unless all of  
the following are true:  
(a) The insurer possesses capital and surplus, if a stock insurer, or surplus, if a mutual  
insurer, of at least $1,500,000.00.  
(b) The insurer, if an alien insurer, has established a separate trust account for contracts  
on a variable basis under a trust indenture approved by the commissioner.  
(c) The commissioner is satisfied that the insurer's condition or method of operation in  
connection with the issuance of contracts on a variable basis will not render its operation  
hazardous to its policyholders or the public.  
(2) In determining whether to issue a certificate of authority which specifically provides  
for issuance of contracts on a variable basis, the commissioner will consider, among other  
relevant matters, the history  
and financial condition of the insurer; the  
character,  
responsibility and fitness of the officers, directors and employees of the insurer and any  
affiliation by common management or ownership of the insurer with an insurer authorized  
to transact life insurance in this state.  
Page 6  
History: 1979 AC.  
R 500.624 Separate accounts.  
Rule 624. (1) An insurer issuing contracts on a variable basis shall not use the same  
separate account for both annuity contracts on a variable basis and contracts of life insurance  
on a variable basis.  
(2) An insurer issuing contracts on a variable basis shall maintain in each separate  
account assets having a value equal to the reserves and other reasonable liabilities and  
obligations with respect to the account.If the securities and exchange commission requires that  
an account have a minimum balance before solicitation is permitted, the insurer may  
participate in the separate account in order to comply with the requirement but the initial  
value of the amount so invested shall not exceed by more than 25% the amount required by  
the securities and exchange commission, and the insurer shall redeem the units so purchased  
within 6 months after the account acquires other assets sufficient to satisfy the requirements  
of the securities and exchange commission. Any surplus or deficit which occurs in a separate  
account because of mortality experience guaranteed by the insurer shall be adjusted at least  
annually at the end of each calendar year by withdrawals from or additions to the separate  
account so that the assets of the account equal the liabilities.  
(3) A separate account shall not be charged with liabilities arising out of other separate  
accounts or out of other business of the insurer unless the liabilities have a specific and  
determinable relation to or dependence upon the separate account.  
(4) Assets allocated to a separate account shall be valued at their market value on the  
date of valuation. Where possible, market values of common stocks shall be established by  
quotations of securities exchanges located in the United States or Canada or by credible  
over-the-counter market quotations. Where such quotations are not available, the assets shall  
be valued in accordance with reasonable rules applicable to the separate account or if there  
are no reasonable rules to be applicable, in accordance with reasonable valuation procedures  
prescribed by the commissioner.  
History: 1979 AC.  
R 500.625 Separate account committees.  
Rule 625. Any provisions of the insurance code of 1956 or of rules promulgated  
pursuant thereto which concern conflicts of interest of officers or directors of insurers are  
equally applicable to members of any separate account's committee, board or other similar  
body. An officer, director or trustee of an insurer or any member of the board of managers,  
board of trustees, or board of directors of a separate account shall not receive, either directly  
or indirectly, any commission or other forms of emolument which is related to the purchase or  
disposal of assets of the insurer or of any of its separate accounts.  
History: 1979 AC.  
R 500.626 Insurance law applicable.  
Page 7  
Rule 626. Provisions of the insurance code of 1956 which apply to contracts of life  
insurance or to annuity contracts also apply to similar contracts on a variable basis but  
computation of reserves and cash  
values and other nonforfeiture benefits shall be in  
accordance with actuarial procedures that recognize the variable nature of the contract.  
Section 4070 of the insurance code of 1956 does not apply to contracts for annuities on a  
variable basis.  
History: 1979 AC.  
R 500.627 Approvals required.  
Rule 627. A contract on a variable basis shall not be delivered or issued for delivery in  
this state and an application for such a contract or a group certificate in connection with any  
such contract shall not be delivered or issued for delivery in this state, unless it has  
been approved by the commissioner pursuant to section 2236 of the insurance code of 1956.  
History: 1979 AC.  
R 500.628 Contracts and certificates; contents.  
Rule 628. A contract on a variable basis shall not be delivered or issued for delivery in  
this state and a group certificate in connection with any such contract shall not be delivered  
or issued for delivery in this state, unless:  
(a) It contains a statement of the essential procedures to be followed by the insurer in  
determining the dollar amount of variable benefits or other contractual payments or values  
under the contract.  
(b) It contains on its first page, in a prominent position,  
a
clear statement that the  
benefits or other contractual payments of values are on a variable basis and will decrease or  
increase to reflect investment experience.  
History: 1979 AC.  
R 500.629 Variable annuity; contract requirements.  
Rule 629. (1) A contract for an annuity on a variable basis shall not be delivered in this  
state unless it stipulates the investment increment factors to be used in computing the dollar  
amount of variable benefits or other variable contractual payments or values thereunder. An  
individual contract for an annuity on a variable basis shall not be delivered or issued for  
delivery in this state, unless all of the following provisions are complied with:  
(a) It contains a provision specifying the options available in the event of default in a  
periodic stipulated payment, which options may include an option to surrender the contract  
for a cash value as determined by the contract and shall include an option to receive a paid-up  
annuity if the contract is not surrendered for cash.  
(b) It stipulates the expense and mortality components used in determining the  
factor which is used in calculating the first annuity payment. Expense may exclude some or  
all taxes as may be provided by the contract.  
Page 8  
(c) The annual net investment increment assumption does not exceed 5%, except with  
the approval of the commissioner.  
(d) The mortality factor is determined from an annuity mortality table authorized by  
section 835 of the insurance code of 1956, as amended, being S500.835 of the Michigan  
Compiled Laws, or any modification of the table approved by the commissioner, or any other  
table so approved.  
(2) The insurer shall disclose, in writing, before or at the time of delivery of the policy,  
the actual or maximum charges to be applied each year against variable annuity contracts  
for  
investment  
management expenses, including internal costs attributable to  
the  
investment management of assets of the separate account.  
History: 1954 ACS 67, Eff. Mar. 26, 1971; 1954 ACS 98, Eff. Dec. 23, 1978; 1979 AC; 1988 MR 7, Eff.  
Aug. 12, 1988.  
R 500.631 Advertising and illustrations.  
Rule 631. (1) Except as exempted in writing by the commissioner, an insurer which  
delivers or issues for delivery contracts on a variable basis shall file with the commissioner  
at least 30 days prior to use copies of advertising, illustrations and other printed materials  
to be used in connection with the sale of individual contracts on a variable basis in this  
state.  
(2) Advertising, illustrations, and other disseminations of  
information concerning  
contracts on a variable basis are subject to the provisions of sections 2005 and 2007 of the  
insurance code of 1956. An illustration of benefits under a contract on a variable basis  
violates those provisions if it includes projections of past investment experience into the  
future or attempted predictions of future investment experience. However, those provisions  
do not prohibit the use of hypothetical assumed rates of interest to illustrate possible levels  
of benefits.  
(3) Advertising, illustrations, and other disseminations of information concerning group  
variable annuity contracts on a variable basis satisfy the provisions of sections 2005 and 2007  
of the insurance code of 1956 if they are subject to review by the securities and exchange  
commission of the United States government or by the national association of securities  
dealers and the review has not resulted in disapproval.  
History: 1954 ACS 67, Eff. Mar. 26, 1971; 1954 ACS 98, Eff. Dec. 23, 1978; 1979 AC.  
R 500.632 Statements.  
Rule 632. (1) An insurer shall mail to each of its holders of an annuity contract on a  
variable basis, at least once in each contract year after the first at his last address known to  
the insurer, a statement reporting the investments held in the separate annuity account (S),  
in a form acceptable to the commissioner.  
(2) An insurer shall mail to each of its holders of an annuity contract on a variable basis  
under which payments have not yet begun, at least once in each contract year after the first at  
his last address known to the insurer, a statement reporting the number of accumulation  
units credited to the contract and the dollar value of a unit or a statement reporting the value  
Page 9  
of the contract holder's account, as of a date not more than 4 months prior to the date of  
mailing.  
(3) Annually an insurer issuing contracts on a variable basis shall submit to the  
commissioner a statement of the business of its separate accounts in the form prescribed by  
the commissioner.  
History: 1979 AC.  
R 500.633 Licensing of agents.  
Rule 633. (1) A person shall not act as an agent in the solicitations or sale of contracts on  
a variable basis unless he is a licensed agent of a life insurer whose certificate of authority  
specifically provides for the issuance of contracts on a variable basis and unless his life  
insurance agent's license has been extended to permit him to solicit and sell variable  
contracts. A licensed agent of a life insurer may solicit and sell contracts on a variable basis  
without extension of his life insurance agent's license if the contract is based on an account  
which is excluded from the definition of investment company by section 3(c)11 of the  
investment company act of 1940.  
(2) A licensed agent of a life insurer whose certificate of authority specifically provides  
for the issuance of contracts on a variable basis may apply for extension of his license to  
permit the solicitation and sale of variable contracts by a letter request directed to the  
commissioner through the home office of the life insurer. Letter requests may be for 1 or more  
of the life insurer's licensed agents.  
(3) The licensing procedures prescribed by R 500.633 to R 500.636 shall not apply to the  
solicitation or sale of life insurance contracts on a variable basis as defined by R 500.841.  
History: 1979 AC.  
R 500.634 Examinations for agents.  
Rule 634. (1) The commissioner shall schedule an examination and notify the agent of  
the date, time and place of the examination. The examination fee may be submitted with the  
letter request or may be paid at the time of examination.  
(2) The examination has 2 parts. Part 1 deals with securities in general. Part 2 deals  
with the history, purpose, regulation and sale of variable contracts. An examinee shall  
achieve a grade of at least 70% in each part in order to pass the examination. Certain sales  
supervisory and home office employees shall achieve a grade of at least 80% in part 1.  
History: 1979 AC.  
R 500.635 Waiver of examination; alternatives; nonresidents.  
Rule 635. (1) The commissioner shall waive part 1 of the examination for any agent who  
applies for extension of his license if the letter request from the insurer is accompanied by  
evidence that the agent has passed an acceptable alternative examination, that the agent  
currently is registered with the securities and exchange commission as a broker-dealer or that  
the agent currently is associated with a broker-dealer and has met the qualification  
Page 10  
requirements for such association. The following examinations are acceptable alternative  
examinations:  
(a) Any state securities sales examination accepted by the securities and exchange  
commission.  
(b) The national association of securities dealers' examination for principals, or its  
examination for qualification as a registered representative.  
(c) The various securities examinations required by the New York stock exchange, the  
American stock exchange, the Pacific stock exchange, or any other registered national  
securities exchange.  
(d) The securities and exchange commission test given pursuant to section 15(b)(8) of  
the securities and exchange act of 1934.  
(e) The examination recommended for the testing of variable contract agents by the  
national association of insurance commissioners, when adopted by the insurance department  
of any state or territory of the United States and approved for use by such department by  
the securities and exchange commission.  
(2) The commissioner shall waive the examination for a licensed nonresident agent  
if the insurance regulatory authority in the state in which the agent resides certifies to the  
commissioner that the agent is licensed to solicit and sell contracts on a variable basis in that  
state.  
History: 1979 AC.  
R 500.636 Rewriting and passing examinations; termination of agents' authority.  
Rule 636. (1) An agent who fails to pass part 1 of the examination may rewrite it after a  
waiting period in accordance with securities and exchange commission requirements but  
the waiting period shall be not less than 20 days. An agent who fails to pass part 2 of the  
examination may rewrite it after a waiting period of not less than 20 days.  
(2) When an agent successfully completes the examination, the commissioner shall  
notify the sponsoring insurer and instruct the insurer to return the agent's license to be amended.  
Amending a license consists of adding the designation including variable contracts to the  
license and making the appropriate notations on the agent's control card in the  
commissioner's files. There is no additional charge to the sponsoring insurer for amending a  
license.  
(3) If an insurer terminates the authority of an agent to solicit and sell contracts on a  
variable basis but maintains the agent's authority to act as a life insurance agent for the  
company, the insurer shall notify the commissioner immediately and return the license to  
the commissioner for deletion of the including variable contracts designation.  
History: 1979 AC.  
R 500.637 Waivers of compliance with rules.  
Rule 637. (1) If the statutes or rules of the place of domicile of an insurer prevent  
compliance with part of these rules, the insurer may advise the commissioner in writing. If  
the insurer demonstrates that the statute or rules of the place of domicile provide  
protection to the policyholders and the public which is substantially equal to that provided by  
Page 11  
these rules, the commissioner may waive compliance with these rules to the extent necessary to  
remove the conflict.  
(2) If an insurer domiciled in this state or an alien insurer entered in this state is prohibited  
from transacting a variable contract business in another jurisdiction because a conflict exists  
between these rules and the rules or laws or both of that jurisdiction, the insurer may advise  
the commissioner in writing. The commissioner may waive compliance with these rules to the  
extent necessary to remove the conflict if he determines that the waiver will not substantially  
reduce the protection to the policyholders and the public provided by these rules.  
History: 1979 AC.  
R 500.641 Suspension or modification of filing requirements; standards.  
Rule 641. Before issuing a written order suspending or modifying the requirement of  
filing as to any kind of insurance, subdivision, or combination thereof, or as to classes of  
risks, the commissioner shall take into account all of the following:  
(a) The magnitude of the coverages and premiums involved.  
(b) Whether the policies involved are of a unique or unusual character.  
(c) Whether the risk is such that immediate coverage is necessary.  
(d) The information available to, or the knowledge of, the parties negotiating the  
coverage as pertains to the risk involved and the rates for such coverage.  
(e) Whether such filing requirement is necessary or desirable for the protection of the  
public.  
History: 1981 AACS.  
Page 12  
;