[§431:10D-402]  Definitions.  For the
purposes of this part:



"Actuarial Standards Board" means the
board established by the American Academy of Actuaries to develop and adopt
standards of actuarial practice.



"Basic illustration" means a ledger
or proposal used in the sale of a life insurance policy that shows both
guaranteed and nonguaranteed elements.



"Contract premium" means the gross
premium that is required to be paid under a fixed premium policy, including the
premium for a rider for which benefits are shown in the illustration.



"Currently payable scale" means a
scale of nonguaranteed elements in effect for a policy form as of the
preparation date of the illustration or declared to become effective within the
next ninety-five days.



"Disciplined current scale" means a
scale of nonguaranteed elements constituting a limit on illustrations currently
being illustrated by an insurer that is reasonably based on actual recent
historical experience, as certified annually by an illustration actuary designated
by the insurer.  Further guidance in determining the disciplined current scale
as contained in standards established by the Actuarial Standards Board may be
relied upon if the standards:



(1)  Are consistent with all provisions of this part;



(2)  Limit a disciplined current scale to reflect only
actions that have already been taken or events that have already occurred;



(3)  Do not permit a disciplined current scale to
include any projected trends of improvements in experience or any assumed
improvements in experience beyond the illustration date; and



(4)  Do not permit assumed expenses to be less than
minimum assumed expenses.



"Generic name" means a short title
descriptive of the policy being illustrated such as "whole life",
"term life", or "flexible premium adjustable life".



"Guaranteed elements" means the
premiums, benefits, values, credits, or charges under a policy of life
insurance that are guaranteed and determined at issue.



"Illustrated scale" means a scale of
nonguaranteed elements currently being illustrated that is not more favorable
to the policy owner than the lesser of:



(1)  The disciplined current scale; or



(2)  The currently payable scale.



"Illustration" means a presentation
or depiction that includes nonguaranteed elements of a policy of life insurance
over a period of years and that is a basic illustration, a supplemental
illustration, or an in force illustration.



"Illustration actuary" means an
actuary meeting the requirements of section 431:10D-409, who certifies to
illustrations based on the standard of practice adopted by the Actuarial
Standards Board.



"In force illustration" means an
illustration furnished at any time after the policy that it depicts has been in
force for one year or more.



"Lapse-supported illustration" means
an illustration of a policy form failing the test of self-supporting
illustration as defined in this part, under a modified persistency rate
assumption using persistency rates underlying the disciplined current scale for
the first five years and one hundred per cent policy persistency thereafter.



"Minimum assumed expenses" means the
minimum expenses that may be used in the calculation of the disciplined current
scale for a policy form.  The insurer may choose to designate each year the
method of determining assumed expenses for all policy forms from the following:



(1)  Fully allocated expenses;



(2)  Marginal expenses; and



(3)  A generally recognized expense table based on
fully allocated expenses representing a significant portion of insurance
companies and approved by the commissioner.



Marginal expenses may be used only if greater than a
generally recognized expense table.  If no generally recognized expense table
is approved, fully allocated expenses must be used.



"Nonguaranteed elements" means the
premiums, benefits, values, credits, or charges under a policy of life
insurance that are not guaranteed or not determined at issue.



"Non-term group life" means a group
policy or individual policies of life insurance issued to members of an
employer group or other permitted group where:



(1)  Every plan of coverage was selected by the
employer or other group representative;



(2)  Some portion of the premium is paid by the group
or through payroll deduction; and



(3)  Group underwriting or simplified underwriting is
used.



"Policy owner" means the owner named
in the policy or the certificate holder in the case of a group policy.



"Premium outlay" means the amount of
premium assumed to be paid by the policy owner or other premium payer
out-of-pocket.



"Self-supporting illustration" means
an illustration of a policy form for which it can be demonstrated that, when
using experience assumptions underlying the disciplined current scale, for all
illustrated points in time on or after the fifteenth policy anniversary or the
twentieth policy anniversary for second-or-later-to-die policies (or upon
policy expiration if sooner), the accumulated value of all policy cash flows
equals or exceeds the total policy owner value available.  For this purpose,
policy owner value shall include cash surrender values and any other
illustrated benefit amounts available at the policy owner's election.



"Supplemental illustration" means an
illustration furnished in addition to a basic illustration that meets the
applicable requirements of this part, and that may be presented in a format
differing from the basic illustration, but may only depict a scale of
nonguaranteed elements that is permitted in a basic illustration. [L 2000, c
252, pt of §2]