375.1503. As used in sections 375.1500 to 375.1527, the followingterms shall mean:
(1) "Actuarial standards board", the board established by theAmerican Academy of Actuaries to develop and promulgate standards ofactuarial practice;
(2) "Contract premium", the gross premium that is required to be paidunder a fixed premium policy, including the premium for a rider for whichbenefits are shown in the illustration;
(3) "Currently payable scale", a scale of nonguaranteed elements ineffect for a policy form as of the preparation date of the illustration ordeclared to become effective within the next ninety-five days;
(4) "Disciplined current scale", a scale of nonguaranteed elementsconstituting a limit on illustrations currently being illustrated by aninsurer that is reasonably based on actual recent historical experience, ascertified annually by an illustration actuary designated by the insurer.Further guidance in determining the disciplined current scale as containedin standards established by the actuarial standards board may be reliedupon if the standards:
(a) Are consistent with sections 375.1500 to 375.1527;
(b) Limit a disciplined current scale to reflect only actions thathave already been taken or events that have already occurred;
(c) Do not permit a disciplined current scale to include anyprojected trends of improvements in experience or any assumed improvementsin experience beyond the illustration date; and
(d) Do not permit assumed expenses to be less than minimum assumedexpenses;
(5) "Generic name", a short title descriptive of the policy beingillustrated such as "whole life", "term life" or "flexible premiumadjustable life";
(6) "Guaranteed elements", the premiums, benefits, values, credits orcharges under a policy of life insurance that are guaranteed and determinedat issue;
(7) "Illustrated scale", a scale of nonguaranteed elements currentlybeing illustrated that is not more favorable to the policy owner than thelesser of:
(a) The disciplined current scale; or
(b) The currently payable scale;
(8) "Illustration", a presentation or depiction that includesnonguaranteed elements of a policy of life insurance over a period of yearsand that is one of the three types defined below:
(a) "Basic illustration", a ledger or proposal used in the sale of alife insurance policy that shows both guaranteed and nonguaranteedelements;
(b) "Supplemental illustration", an illustration furnished inaddition to a basic illustration that meets the applicable requirements ofsections 375.1500 to 375.1527, 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;
(c) "In-force illustration", an illustration furnished at any timeafter the policy that it depicts has been in force for one year or more;
(9) "Illustration actuary", an actuary meeting the requirements ofsection 375.1524 who certifies to illustrations based on the standardpractice promulgated by the actuarial standards board;
(10) "Lapse-supported illustration", an illustration of a policy formfailing the test of self-supporting illustration as defined in subdivision(16) of this section, under a modified persistency rate assumption usingpersistency rates underlying the disciplined current scale for the firstfive years and one hundred percent policy persistency thereafter;
(11) "Minimum assumed expenses", the minimum expenses that may beused in the calculation of the disciplined current scale for a policy form.The insurer may choose to designate each year the method of determiningassumed expenses for all policy forms from the following:
(a) Fully allocated expenses;
(b) Marginal expenses; and
(c) A generally recognized expense table on fully allocated expensesrepresenting a significant portion of insurance companies and approved bythe National Association of Insurance Commissioners.
Marginal expenses may be used only if greater than a generally recognizedexpense table. If no generally recognized expense table is approved, fullyallocated expenses shall be used;
(12) "Nonguaranteed elements", the premiums, benefits, values,credits or charges under a policy of life insurance that are not guaranteedor not determined at issue;
(13) "Nonterm group life", a group policy or individual policies oflife insurance issued to members of an employer group or other permittedgroup where:
(a) Every plan of coverage was selected by the employer or othergroup representative;
(b) Some portion of the premium is paid by the group or throughpayroll deduction; and
(c) Group underwriting or simplified underwriting is used;
(14) "Policy owner", the owner named in the policy or the certificateholder in the case of a group policy;
(15) "Premium outlay", the amount of premium assumed to be paid bythe policy owner or other premium payer out-of-pocket;
(16) "Self-supporting illustration", an illustration of a policy formfor which it can be demonstrated that, when using experience assumptionsunderlying the disciplined current scale, for all illustrated points intime on or after the fifteenth policy anniversary or the twentieth policyanniversary for second-or-later-to-die policies, or upon policy expirationif sooner, the accumulated value of all policy cash flows equals or exceedsthe total policy owner value available. For this purpose, "policy ownervalue" shall include cash surrender values and any other illustratedbenefit amounts available at the policy owner's election.
375.1503. As used in sections 375.1500 to 375.1527, the followingterms shall mean:
(1) "Actuarial standards board", the board established by theAmerican Academy of Actuaries to develop and promulgate standards ofactuarial practice;
(2) "Contract premium", the gross premium that is required to be paidunder a fixed premium policy, including the premium for a rider for whichbenefits are shown in the illustration;
(3) "Currently payable scale", a scale of nonguaranteed elements ineffect for a policy form as of the preparation date of the illustration ordeclared to become effective within the next ninety-five days;
(4) "Disciplined current scale", a scale of nonguaranteed elementsconstituting a limit on illustrations currently being illustrated by aninsurer that is reasonably based on actual recent historical experience, ascertified annually by an illustration actuary designated by the insurer.Further guidance in determining the disciplined current scale as containedin standards established by the actuarial standards board may be reliedupon if the standards:
(a) Are consistent with sections 375.1500 to 375.1527;
(b) Limit a disciplined current scale to reflect only actions thathave already been taken or events that have already occurred;
(c) Do not permit a disciplined current scale to include anyprojected trends of improvements in experience or any assumed improvementsin experience beyond the illustration date; and
(d) Do not permit assumed expenses to be less than minimum assumedexpenses;
(5) "Generic name", a short title descriptive of the policy beingillustrated such as "whole life", "term life" or "flexible premiumadjustable life";
(6) "Guaranteed elements", the premiums, benefits, values, credits orcharges under a policy of life insurance that are guaranteed and determinedat issue;
(7) "Illustrated scale", a scale of nonguaranteed elements currentlybeing illustrated that is not more favorable to the policy owner than thelesser of:
(a) The disciplined current scale; or
(b) The currently payable scale;
(8) "Illustration", a presentation or depiction that includesnonguaranteed elements of a policy of life insurance over a period of yearsand that is one of the three types defined below:
(a) "Basic illustration", a ledger or proposal used in the sale of alife insurance policy that shows both guaranteed and nonguaranteedelements;
(b) "Supplemental illustration", an illustration furnished inaddition to a basic illustration that meets the applicable requirements ofsections 375.1500 to 375.1527, 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;
(c) "In-force illustration", an illustration furnished at any timeafter the policy that it depicts has been in force for one year or more;
(9) "Illustration actuary", an actuary meeting the requirements ofsection 375.1524 who certifies to illustrations based on the standardpractice promulgated by the actuarial standards board;
(10) "Lapse-supported illustration", an illustration of a policy formfailing the test of self-supporting illustration as defined in subdivision(16) of this section, under a modified persistency rate assumption usingpersistency rates underlying the disciplined current scale for the firstfive years and one hundred percent policy persistency thereafter;
(11) "Minimum assumed expenses", the minimum expenses that may beused in the calculation of the disciplined current scale for a policy form.The insurer may choose to designate each year the method of determiningassumed expenses for all policy forms from the following:
(a) Fully allocated expenses;
(b) Marginal expenses; and
(c) A generally recognized expense table on fully allocated expensesrepresenting a significant portion of insurance companies and approved bythe National Association of Insurance Commissioners.
Marginal expenses may be used only if greater than a generally recognizedexpense table. If no generally recognized expense table is approved, fullyallocated expenses shall be used;
(12) "Nonguaranteed elements", the premiums, benefits, values,credits or charges under a policy of life insurance that are not guaranteedor not determined at issue;
(13) "Nonterm group life", a group policy or individual policies oflife insurance issued to members of an employer group or other permittedgroup where:
(a) Every plan of coverage was selected by the employer or othergroup representative;
(b) Some portion of the premium is paid by the group or throughpayroll deduction; and
(c) Group underwriting or simplified underwriting is used;
(14) "Policy owner", the owner named in the policy or the certificateholder in the case of a group policy;
(15) "Premium outlay", the amount of premium assumed to be paid bythe policy owner or other premium payer out-of-pocket;
(16) "Self-supporting illustration", an illustration of a policy formfor which it can be demonstrated that, when using experience assumptionsunderlying the disciplined current scale, for all illustrated points intime on or after the fifteenth policy anniversary or the twentieth policyanniversary for second-or-later-to-die policies, or upon policy expirationif sooner, the accumulated value of all policy cash flows equals or exceedsthe total policy owner value available. For this purpose, "policy ownervalue" shall include cash surrender values and any other illustratedbenefit amounts available at the policy owner's election.
375.1503. As used in sections 375.1500 to 375.1527, the followingterms shall mean:
(1) "Actuarial standards board", the board established by theAmerican Academy of Actuaries to develop and promulgate standards ofactuarial practice;
(2) "Contract premium", the gross premium that is required to be paidunder a fixed premium policy, including the premium for a rider for whichbenefits are shown in the illustration;
(3) "Currently payable scale", a scale of nonguaranteed elements ineffect for a policy form as of the preparation date of the illustration ordeclared to become effective within the next ninety-five days;
(4) "Disciplined current scale", a scale of nonguaranteed elementsconstituting a limit on illustrations currently being illustrated by aninsurer that is reasonably based on actual recent historical experience, ascertified annually by an illustration actuary designated by the insurer.Further guidance in determining the disciplined current scale as containedin standards established by the actuarial standards board may be reliedupon if the standards:
(a) Are consistent with sections 375.1500 to 375.1527;
(b) Limit a disciplined current scale to reflect only actions thathave already been taken or events that have already occurred;
(c) Do not permit a disciplined current scale to include anyprojected trends of improvements in experience or any assumed improvementsin experience beyond the illustration date; and
(d) Do not permit assumed expenses to be less than minimum assumedexpenses;
(5) "Generic name", a short title descriptive of the policy beingillustrated such as "whole life", "term life" or "flexible premiumadjustable life";
(6) "Guaranteed elements", the premiums, benefits, values, credits orcharges under a policy of life insurance that are guaranteed and determinedat issue;
(7) "Illustrated scale", a scale of nonguaranteed elements currentlybeing illustrated that is not more favorable to the policy owner than thelesser of:
(a) The disciplined current scale; or
(b) The currently payable scale;
(8) "Illustration", a presentation or depiction that includesnonguaranteed elements of a policy of life insurance over a period of yearsand that is one of the three types defined below:
(a) "Basic illustration", a ledger or proposal used in the sale of alife insurance policy that shows both guaranteed and nonguaranteedelements;
(b) "Supplemental illustration", an illustration furnished inaddition to a basic illustration that meets the applicable requirements ofsections 375.1500 to 375.1527, 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;
(c) "In-force illustration", an illustration furnished at any timeafter the policy that it depicts has been in force for one year or more;
(9) "Illustration actuary", an actuary meeting the requirements ofsection 375.1524 who certifies to illustrations based on the standardpractice promulgated by the actuarial standards board;
(10) "Lapse-supported illustration", an illustration of a policy formfailing the test of self-supporting illustration as defined in subdivision(16) of this section, under a modified persistency rate assumption usingpersistency rates underlying the disciplined current scale for the firstfive years and one hundred percent policy persistency thereafter;
(11) "Minimum assumed expenses", the minimum expenses that may beused in the calculation of the disciplined current scale for a policy form.The insurer may choose to designate each year the method of determiningassumed expenses for all policy forms from the following:
(a) Fully allocated expenses;
(b) Marginal expenses; and
(c) A generally recognized expense table on fully allocated expensesrepresenting a significant portion of insurance companies and approved bythe National Association of Insurance Commissioners.
Marginal expenses may be used only if greater than a generally recognizedexpense table. If no generally recognized expense table is approved, fullyallocated expenses shall be used;
(12) "Nonguaranteed elements", the premiums, benefits, values,credits or charges under a policy of life insurance that are not guaranteedor not determined at issue;
(13) "Nonterm group life", a group policy or individual policies oflife insurance issued to members of an employer group or other permittedgroup where:
(a) Every plan of coverage was selected by the employer or othergroup representative;
(b) Some portion of the premium is paid by the group or throughpayroll deduction; and
(c) Group underwriting or simplified underwriting is used;
(14) "Policy owner", the owner named in the policy or the certificateholder in the case of a group policy;
(15) "Premium outlay", the amount of premium assumed to be paid bythe policy owner or other premium payer out-of-pocket;
(16) "Self-supporting illustration", an illustration of a policy formfor which it can be demonstrated that, when using experience assumptionsunderlying the disciplined current scale, for all illustrated points intime on or after the fifteenth policy anniversary or the twentieth policyanniversary for second-or-later-to-die policies, or upon policy expirationif sooner, the accumulated value of all policy cash flows equals or exceedsthe total policy owner value available. For this purpose, "policy ownervalue" shall include cash surrender values and any other illustratedbenefit amounts available at the policy owner's election.
