(a) No investment annuity policy shall be delivered or issued for delivery in this State by an insurer until the Commissioner is satisfied that the issuance of such policy is not hazardous to either the public or to the annuitants of such insurer. An insurer shall not be authorized to deliver or issue for delivery in this State an investment annuity policy unless the insurer has filed in form and substance, to the satisfaction of the Commissioner, the following:

1. (1) A statement of the actuarial assumptions upon which the investment annuities are to be issued and the plan and methods of administration and marketing of investment annuities, including advertising materials;
2. (2) A statement of the method of control, management and administration of the segregated custodian accounts, including the account reporting procedures to annuitants and to policyowners, if the policyowner has the investment discretion as to the account;
3. (3) Evidence of compliance with relevant tax laws and regulations and any relevant federal securities laws and regulations. Such evidence of compliance must be to the satisfaction of the Insurance Commissioner, and different standards of compliance may be required depending upon the scope of the Accepted Assets List and the types of assets appearing on such list, and the arrangement, if any, to offer or sell assets to fund the custodian account or accounts, or provide investment advice or investment management with respect to such assets (this includes affiliated broker-dealers licensed as life insurance agents);
4. (4) A full disclosure statement with respect to any person (including life agents) associated with the insurer and any broker-dealer who may recommend securities to annuitants, effect securities transactions on their behalf, or undertake to act as investment manager to the annuitant, in connection with the funding or maintaining of the segregated custodian accounts, and a commitment to provide disclosure with respect to any changes in such relationships;
5. (5) A full disclosure statement revealing the relationship with such custodian or any organization that may sell, issue or provide securities or other assets which may be held in any custodian account of any officers, directors or person owning or controlling 10% or more of the stock of the insurer or the proposed custodian and a commitment to provide disclosure of any subsequent changes in such relationships;
6. (6) A certification that there is no commitment, nor will the insurer at any time enter into a commitment, with any person to subsidize in any manner or by any means the cost of producing or handling the investment annuity business (including the custodian, transfer agent, service organizations but excluding any commission or other compensation to the producing life agent);

7. (7) A five (5) year projection, in a form prescribed by the Insurance Commissioner, of the development of statutory surplus arising from the operations of investment annuity contracts, which must include, but not necessarily be limited to, sufficient details of the methods employed in determining the separate items to enable the Department of Insurance to independently verify the application of the assumptions. The financial projections shall include the cost of commissions, data processing, salaries, general administration, and the resultant effect on surplus, and be based upon three separate assumptions with respect to the rate of writings:

   1. (A) As developed assuming a level annual dollar amount of investment over the initial five (5) year period;
   2. (B) Assuming an increase in the annual dollar amount of investment over the initial five (5) years increasing at the rate of 20% per year compounded annually;
   3. (C) Assuming a decrease in the annual dollar amount of investment over the initial five (5) years, at the rate of 20% so that each year's dollar amount is 80% of the previous year's dollar amount of investment as each relates to the previous year's dollar amount of investment, as each relates to the consideration received by the insurer; and
8. (8) A statement that the insurer has complied with all of the other requirements of this Article.