20-2601

20-2601. Definitions

In this chapter, unless the context otherwise requires:

1. "Affiliate" means a person who directly or indirectly controls, is controlled by
or is under common control with an insurer, a person who for a specific fee or commission
regularly furnishes investment advice to an insurer with respect to the insurer's
separate accounts or a director, officer, partner or employee or a member of the
immediate family of a director, officer, partner or employee of an insurer, controlling
or controlled person or person providing investment advice.

2. "Assumed investment rate" means the rate of investment return that is required
to be credited to a variable life insurance policy, after the deduction of charges for
taxes, investment expenses and mortality and expense guarantees, to maintain the variable
death benefit in an amount that is equal at all times to the amount of the death benefit,
other than incidental insurance benefits, that would be payable under the plan of
insurance if the death benefit did not vary according to the investment experience of the
separate account.

3. "Benefit base" means the amount to which the net investment return is applied.

4. "Control" or "controlling" has the same meaning prescribed in section 20-481 and
includes the terms "controlled by" and "under common control with".

5. "Flexible premium policy" means a variable life insurance policy other than a
scheduled premium policy.

6. "General account" means all of the assets of an insurer other than assets in
separate accounts established pursuant to section 20-651 or the insurance laws of the
insurer's state of domicile if the insurer is a foreign or alien insurer.

7. "Incidental insurance benefit" means all of the insurance benefits in a variable
life insurance policy except the variable death benefit and the minimum death
benefit. Incidental insurance benefit includes accidental death and dismemberment
benefits, disability benefits, guaranteed insurability options, family income or term
riders.

8. "Insurance producer" means any person, corporation, partnership, or other legal
entity that is licensed by this state as a life insurance producer.

9. "Minimum death benefit" means the amount of the guaranteed death benefit, except
incidental insurance benefits, that is payable under a variable life insurance policy
regardless of the investment performance of the separate account.

10. "Net investment return" means the rate of investment return in a separate
account that is applied to the benefit base.

11. "Policy processing day" means the day on which the charges that are authorized
in a policy are deducted from the policy's cash value.

12. "Scheduled premium policy" means a variable life insurance policy under which
both the amount and timing of premium payments are fixed by the insurer.

13. "Separate account" means a separate account established pursuant to section
20-651 or the insurance laws of the insurer's state of domicile if the insurer is a
foreign or alien insurer.

14. "Variable death benefit" means the amount of the death benefit, except
incidental insurance benefits, that is payable under a variable life insurance policy,
that is dependent on the investment performance of the separate account and that the
insurer must pay in the absence of any minimum death benefit.

15. "Variable life insurance policy" means an individual policy that provides for
life insurance, the amount or duration of which varies according to the investment
experience of any separate account or accounts that are established and maintained by the
insurer pursuant to section 20-651 or the insurance laws of the insurer's state of
domicile if the insurer is a foreign or alien insurer.