§ 27-62-3 Definitions. – (a) "Actuarial standards board" means the board established by the AmericanAcademy of Actuaries to develop and promulgate standards of actuarial practice.
(b) "Contract premium" means the gross premium that isrequired to be paid under a fixed premium policy, including the premium for arider for which benefits are shown in the illustration.
(c) "Currently payable scale" means a scale of non-guaranteedelements in effect for a policy form as of the preparation date of theillustration or declared to become effective within the next ninety-five (95)days.
(d) "Disciplined current scale" means a scale ofnon-guaranteed elements constituting a limit on illustrations currently beingillustrated by an insurer that is reasonably based on actual recent historicalexperience, as certified annually by an illustration actuary designated by theinsurer. Further guidance in determining the disciplined current scale ascontained in standards established by the Actuarial Standards Board may berelied upon if the standards:
(1) Are consistent with all provisions of this chapter;
(2) Limit a disciplined current scale to reflect only actionsthat have already been taken or events that have already occurred;
(3) Do not permit a disciplined current scale to include anyprojected trends of improvements in experience or any assumed improvements inexperience beyond the illustration date; and
(4) Do not permit assumed expenses to be less than minimumassumed expenses.
(e) "Generic name" means a short title descriptive of thepolicy being illustrated such as "whole life", "term life", or "flexiblepremium adjustable life".
(f) "Guaranteed elements" and "non-guaranteed elements":
(1) "Guaranteed elements" means the premiums, benefits,values, credits, or charges under a policy of life insurance that areguaranteed and determined at issue.
(2) "Non-guaranteed elements" means the premiums, benefits,values, credits, or charges under a policy of life insurance that are notguaranteed or not determined at issue.
(g) "Illustrated scale" means a scale of non-guaranteedelements currently being illustrated that is not more favorable to the policyowner than the lesser of:
(1) The disciplined current scale; or
(2) The currently payable scale.
(h) "Illustration" means a presentation or depiction thatincludes non-guaranteed elements of a policy of life insurance over a period ofyears and that is one of the three (3) types defined in subdivisions (h)(1-3):
(1) "Basic illustration" means a ledger or proposal used inthe sale of a life insurance policy that shows both guaranteed andnon-guaranteed elements.
(2) "Supplemental illustration" means an illustrationfurnished in addition to a basic illustration that meets the applicablerequirements of this chapter, and that may be presented in a format differingfrom the basic illustration, but may only depict a scale of non-guaranteedelements that is permitted in a basic illustration.
(3) "In force illustration" means an illustration furnishedat any time after the policy that it depicts has been in force for one year ormore.
(i) "Illustration actuary" means an actuary meeting therequirements of § 27-62-10 who certifies to illustrations based on thestandard of practice promulgated by the Actuarial Standards Board.
(j) "Lapse-supported illustration" means an illustration of apolicy form failing the test of self-supporting as defined in this chapter,under a modified persistency rate assumption using persistency rates underlyingthe disciplined current scale for the first five (5) years and one hundredpercent (100%) policy persistency thereafter.
(k) "Minimum assumed expenses" means the minimum expensesthat may be used in the calculation of the disciplined current scale for apolicy form. The insurer may choose to designate each year the method ofdetermining assumed expenses for all policy forms from the following:
(i) Fully allocated expenses;
(ii) Marginal expenses; and
(iii) A generally recognized expense table based on fullyallocated expenses representing a significant portion of insurance companiesand approved by the commissioner.
(2) Marginal expenses may be used only if greater than agenerally recognized expense table. If no generally recognized expense table isapproved, fully allocated expenses must be used.
(l) "Non-term group life" means a group policy or individualpolicies of life insurance issued to members of an employer group or otherpermitted group where:
(1) Every plan of coverage was selected by the employer orother group representative;
(2) Some portion of the premium is paid by the group orthrough payroll deduction; and
(3) Group underwriting or simplified underwriting is used.
(m) "Policy owner" means the owner named in the policy or thecertificate holder in the case of a group policy.
(n) "Premium outlay" means the amount of premium assumed tobe paid by the policy owner or other premium payer out-of-pocket.
(o) "Self-supporting illustration" means an illustration of apolicy form for which it can be demonstrated that, when using experienceassumptions underlying the disciplined current scale, for all illustratedpoints in time on or after the fifteenth (15th) policy anniversary or thetwentieth (20th) policy anniversary for second-or-later-to-die policies (orupon policy expiration if sooner), the accumulated value of all policy cashflows equals or exceeds the total policy owner value available. For thispurpose, policy owner value will include cash surrender values and any otherillustrated benefit amounts available at the policy owner's election.
§ 27-62-3 Definitions. – (a) "Actuarial standards board" means the board established by the AmericanAcademy of Actuaries to develop and promulgate standards of actuarial practice.
(b) "Contract premium" means the gross premium that isrequired to be paid under a fixed premium policy, including the premium for arider for which benefits are shown in the illustration.
(c) "Currently payable scale" means a scale of non-guaranteedelements in effect for a policy form as of the preparation date of theillustration or declared to become effective within the next ninety-five (95)days.
(d) "Disciplined current scale" means a scale ofnon-guaranteed elements constituting a limit on illustrations currently beingillustrated by an insurer that is reasonably based on actual recent historicalexperience, as certified annually by an illustration actuary designated by theinsurer. Further guidance in determining the disciplined current scale ascontained in standards established by the Actuarial Standards Board may berelied upon if the standards:
(1) Are consistent with all provisions of this chapter;
(2) Limit a disciplined current scale to reflect only actionsthat have already been taken or events that have already occurred;
(3) Do not permit a disciplined current scale to include anyprojected trends of improvements in experience or any assumed improvements inexperience beyond the illustration date; and
(4) Do not permit assumed expenses to be less than minimumassumed expenses.
(e) "Generic name" means a short title descriptive of thepolicy being illustrated such as "whole life", "term life", or "flexiblepremium adjustable life".
(f) "Guaranteed elements" and "non-guaranteed elements":
(1) "Guaranteed elements" means the premiums, benefits,values, credits, or charges under a policy of life insurance that areguaranteed and determined at issue.
(2) "Non-guaranteed elements" means the premiums, benefits,values, credits, or charges under a policy of life insurance that are notguaranteed or not determined at issue.
(g) "Illustrated scale" means a scale of non-guaranteedelements currently being illustrated that is not more favorable to the policyowner than the lesser of:
(1) The disciplined current scale; or
(2) The currently payable scale.
(h) "Illustration" means a presentation or depiction thatincludes non-guaranteed elements of a policy of life insurance over a period ofyears and that is one of the three (3) types defined in subdivisions (h)(1-3):
(1) "Basic illustration" means a ledger or proposal used inthe sale of a life insurance policy that shows both guaranteed andnon-guaranteed elements.
(2) "Supplemental illustration" means an illustrationfurnished in addition to a basic illustration that meets the applicablerequirements of this chapter, and that may be presented in a format differingfrom the basic illustration, but may only depict a scale of non-guaranteedelements that is permitted in a basic illustration.
(3) "In force illustration" means an illustration furnishedat any time after the policy that it depicts has been in force for one year ormore.
(i) "Illustration actuary" means an actuary meeting therequirements of § 27-62-10 who certifies to illustrations based on thestandard of practice promulgated by the Actuarial Standards Board.
(j) "Lapse-supported illustration" means an illustration of apolicy form failing the test of self-supporting as defined in this chapter,under a modified persistency rate assumption using persistency rates underlyingthe disciplined current scale for the first five (5) years and one hundredpercent (100%) policy persistency thereafter.
(k) "Minimum assumed expenses" means the minimum expensesthat may be used in the calculation of the disciplined current scale for apolicy form. The insurer may choose to designate each year the method ofdetermining assumed expenses for all policy forms from the following:
(i) Fully allocated expenses;
(ii) Marginal expenses; and
(iii) A generally recognized expense table based on fullyallocated expenses representing a significant portion of insurance companiesand approved by the commissioner.
(2) Marginal expenses may be used only if greater than agenerally recognized expense table. If no generally recognized expense table isapproved, fully allocated expenses must be used.
(l) "Non-term group life" means a group policy or individualpolicies of life insurance issued to members of an employer group or otherpermitted group where:
(1) Every plan of coverage was selected by the employer orother group representative;
(2) Some portion of the premium is paid by the group orthrough payroll deduction; and
(3) Group underwriting or simplified underwriting is used.
(m) "Policy owner" means the owner named in the policy or thecertificate holder in the case of a group policy.
(n) "Premium outlay" means the amount of premium assumed tobe paid by the policy owner or other premium payer out-of-pocket.
(o) "Self-supporting illustration" means an illustration of apolicy form for which it can be demonstrated that, when using experienceassumptions underlying the disciplined current scale, for all illustratedpoints in time on or after the fifteenth (15th) policy anniversary or thetwentieth (20th) policy anniversary for second-or-later-to-die policies (orupon policy expiration if sooner), the accumulated value of all policy cashflows equals or exceeds the total policy owner value available. For thispurpose, policy owner value will include cash surrender values and any otherillustrated benefit amounts available at the policy owner's election.
§ 27-62-3 Definitions. – (a) "Actuarial standards board" means the board established by the AmericanAcademy of Actuaries to develop and promulgate standards of actuarial practice.
(b) "Contract premium" means the gross premium that isrequired to be paid under a fixed premium policy, including the premium for arider for which benefits are shown in the illustration.
(c) "Currently payable scale" means a scale of non-guaranteedelements in effect for a policy form as of the preparation date of theillustration or declared to become effective within the next ninety-five (95)days.
(d) "Disciplined current scale" means a scale ofnon-guaranteed elements constituting a limit on illustrations currently beingillustrated by an insurer that is reasonably based on actual recent historicalexperience, as certified annually by an illustration actuary designated by theinsurer. Further guidance in determining the disciplined current scale ascontained in standards established by the Actuarial Standards Board may berelied upon if the standards:
(1) Are consistent with all provisions of this chapter;
(2) Limit a disciplined current scale to reflect only actionsthat have already been taken or events that have already occurred;
(3) Do not permit a disciplined current scale to include anyprojected trends of improvements in experience or any assumed improvements inexperience beyond the illustration date; and
(4) Do not permit assumed expenses to be less than minimumassumed expenses.
(e) "Generic name" means a short title descriptive of thepolicy being illustrated such as "whole life", "term life", or "flexiblepremium adjustable life".
(f) "Guaranteed elements" and "non-guaranteed elements":
(1) "Guaranteed elements" means the premiums, benefits,values, credits, or charges under a policy of life insurance that areguaranteed and determined at issue.
(2) "Non-guaranteed elements" means the premiums, benefits,values, credits, or charges under a policy of life insurance that are notguaranteed or not determined at issue.
(g) "Illustrated scale" means a scale of non-guaranteedelements currently being illustrated that is not more favorable to the policyowner than the lesser of:
(1) The disciplined current scale; or
(2) The currently payable scale.
(h) "Illustration" means a presentation or depiction thatincludes non-guaranteed elements of a policy of life insurance over a period ofyears and that is one of the three (3) types defined in subdivisions (h)(1-3):
(1) "Basic illustration" means a ledger or proposal used inthe sale of a life insurance policy that shows both guaranteed andnon-guaranteed elements.
(2) "Supplemental illustration" means an illustrationfurnished in addition to a basic illustration that meets the applicablerequirements of this chapter, and that may be presented in a format differingfrom the basic illustration, but may only depict a scale of non-guaranteedelements that is permitted in a basic illustration.
(3) "In force illustration" means an illustration furnishedat any time after the policy that it depicts has been in force for one year ormore.
(i) "Illustration actuary" means an actuary meeting therequirements of § 27-62-10 who certifies to illustrations based on thestandard of practice promulgated by the Actuarial Standards Board.
(j) "Lapse-supported illustration" means an illustration of apolicy form failing the test of self-supporting as defined in this chapter,under a modified persistency rate assumption using persistency rates underlyingthe disciplined current scale for the first five (5) years and one hundredpercent (100%) policy persistency thereafter.
(k) "Minimum assumed expenses" means the minimum expensesthat may be used in the calculation of the disciplined current scale for apolicy form. The insurer may choose to designate each year the method ofdetermining assumed expenses for all policy forms from the following:
(i) Fully allocated expenses;
(ii) Marginal expenses; and
(iii) A generally recognized expense table based on fullyallocated expenses representing a significant portion of insurance companiesand approved by the commissioner.
(2) Marginal expenses may be used only if greater than agenerally recognized expense table. If no generally recognized expense table isapproved, fully allocated expenses must be used.
(l) "Non-term group life" means a group policy or individualpolicies of life insurance issued to members of an employer group or otherpermitted group where:
(1) Every plan of coverage was selected by the employer orother group representative;
(2) Some portion of the premium is paid by the group orthrough payroll deduction; and
(3) Group underwriting or simplified underwriting is used.
(m) "Policy owner" means the owner named in the policy or thecertificate holder in the case of a group policy.
(n) "Premium outlay" means the amount of premium assumed tobe paid by the policy owner or other premium payer out-of-pocket.
(o) "Self-supporting illustration" means an illustration of apolicy form for which it can be demonstrated that, when using experienceassumptions underlying the disciplined current scale, for all illustratedpoints in time on or after the fifteenth (15th) policy anniversary or thetwentieth (20th) policy anniversary for second-or-later-to-die policies (orupon policy expiration if sooner), the accumulated value of all policy cashflows equals or exceeds the total policy owner value available. For thispurpose, policy owner value will include cash surrender values and any otherillustrated benefit amounts available at the policy owner's election.
