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

"Actuarial Standards Board" means theboard established by the American Academy of Actuaries to develop and adoptstandards of actuarial practice.

"Basic illustration" means a ledgeror proposal used in the sale of a life insurance policy that shows bothguaranteed and nonguaranteed elements.

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

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

"Disciplined current scale" means ascale of nonguaranteed elements constituting a limit on illustrations currentlybeing illustrated by an insurer that is reasonably based on actual recenthistorical experience, as certified annually by an illustration actuary designatedby the insurer.  Further guidance in determining the disciplined current scaleas contained in standards established by the Actuarial Standards Board may berelied upon if the standards:

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

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

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

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

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

"Guaranteed elements" means thepremiums, benefits, values, credits, or charges under a policy of lifeinsurance that are guaranteed and determined at issue.

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

(1)  The disciplined current scale; or

(2)  The currently payable scale.

"Illustration" means a presentationor depiction that includes nonguaranteed elements of a policy of life insuranceover a period of years and that is a basic illustration, a supplementalillustration, or an in force illustration.

"Illustration actuary" means anactuary meeting the requirements of section 431:10D-409, who certifies toillustrations based on the standard of practice adopted by the ActuarialStandards Board.

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

"Lapse-supported illustration" meansan illustration of a policy form failing the test of self-supportingillustration as defined in this part, under a modified persistency rateassumption using persistency rates underlying the disciplined current scale forthe first five years and one hundred per cent policy persistency thereafter.

"Minimum assumed expenses" means theminimum expenses that may be used in the calculation of the disciplined currentscale for a policy form.  The insurer may choose to designate each year themethod 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 onfully allocated expenses representing a significant portion of insurancecompanies and approved by the commissioner.

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

"Nonguaranteed elements" means thepremiums, benefits, values, credits, or charges under a policy of lifeinsurance that are not guaranteed or not determined at issue.

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

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

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

(3)  Group underwriting or simplified underwriting isused.

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

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

"Self-supporting illustration" meansan illustration of a policy form for which it can be demonstrated that, whenusing experience assumptions underlying the disciplined current scale, for allillustrated points in time on or after the fifteenth policy anniversary or thetwentieth policy anniversary for second-or-later-to-die policies (or uponpolicy expiration if sooner), the accumulated value of all policy cash flowsequals or exceeds the total policy owner value available.  For this purpose,policy owner value shall include cash surrender values and any otherillustrated benefit amounts available at the policy owner's election.

"Supplemental illustration" means anillustration furnished in addition to a basic illustration that meets theapplicable requirements of this part, and that may be presented in a formatdiffering from the basic illustration, but may only depict a scale ofnonguaranteed elements that is permitted in a basic illustration. [L 2000, c252, pt of §2]