Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 2 - Division of Insurance › Chapter 28 - Life, Health, Variable, and Related Insurance › Article 9 - Life Insurance Policy Illustrations › 3 AAC 28.849 - Definitions

Current through May 31, 2024
For the purposes of
					 3 AAC 28.800 -
					 3 AAC 28.849,
(1) "Actuarial Standards Board" means the
				  board established by the American Academy of Actuaries to develop and adopt
				  standards of actuarial practice;
(2) "basic illustration" means a presentation
				  or depiction used in the sale of a life insurance policy that includes both
				  guaranteed and non-guaranteed elements;
(3) "contract premium" means the gross
				  premium that is required to be paid under a fixed premium policy, and includes
				  the premium for any rider for which benefits are shown in the
				  illustration;
(4) "currently
				  payable scale" means a scale of non-guaranteed elements in effect for a policy
				  form as of the preparation date of the illustration or declared to become
				  effective within the next 95 days;
(5) "disciplined current scale" means a scale
				  of non-guaranteed 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;
(6)
				  "generic name" means a short title descriptive of the type of policy being
				  illustrated, such as "whole life," "term life," or "flexible premium adjustable
				  life";
(7) "guaranteed element"
				  means a premium, benefit, value, credit, or charge under a policy of life
				  insurance that is guaranteed and determined at the time of issue;
(8) "illustrated scale" means a scale of
				  non-guaranteed elements currently being illustrated that is not more favorable
				  to the policy owner than the lesser of the disciplined current scale or the
				  currently payable scale;
(9)
				  "illustration" means a presentation or depiction that includes non-guaranteed
				  elements of a policy or certificate of life insurance over a period of years
				  that is either a basic illustration, a supplemental illustration, or an in
				  force illustration;
(10)
				  "illustration actuary" means an actuary appointed by the board of directors of
				  an insurer under
				  3 AAC 28.840(a), who meets the
				  requirements of
				  3 AAC 28.840(b);
(11) "in force illustration" means a
				  presentation or depiction furnished to a policy holder at any time after the
				  policy it depicts has been in force for at least one year;
(12) "lapse-supported illustration" means an
				  illustration of a policy form that is not a self-supporting illustration under
				  a modified persistency rate assumption using persistency rates underlying the
				  disciplined current scale for the first five years and 100 percent persistency
				  rate after the fifth year;
(13)
				  "non-guaranteed element" means a premium, benefit, value, credit, or charge
				  under a policy or certificate of life insurance that is not guaranteed or
				  determined at the time of issue;
(14) "non-term group life" means a group
				  policy or individual policies of life insurance issued to members of an
				  employer group or other group for which each plan of coverage was selected by
				  the employer or plan sponsor; a portion of the premium is paid by the group or
				  through payroll deduction; and group or simplified underwriting is
				  used;
(15) "persistency rate" means
				  the ratio of the number of policies that continue coverage to a particular date
				  in a period to the number of policies that were in force on the same date in
				  the preceding period;
(16) "policy
				  owner" means the person named as owner of an insurance policy or the
				  certificate holder in the case of a group insurance policy;
(17) "premium outlay" means the amount of
				  premium to be paid out-of-pocket by the policy owner or other person
				  responsible for paying the policy premium;
(18) "second-or-later-to-die policy" means a
				  policy on two or more people that pays death proceeds only upon the death of
				  the second or later person alive;
(19) "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 15th policy anniversary, or on or
				  after the 20th policy anniversary for a second-or-later-to-die policy, 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, the
				  policy owner value includes cash surrender values and any other illustrated
				  benefit amounts available at the policy owner's election;
(20) "supplemental illustration" means a
				  presentation or depiction furnished in addition to a basic illustration showing
				  special features or variations applicable to the basic policy and that may be
				  presented in a format differing from the basic illustration, but only depicts
				  the scale of non-guaranteed elements that is permitted in a basic
				  illustration.
In 2010 the revisor of statutes, acting under
						AS
						01.05.031, renumbered former
						AS
						21.36.150 as
						AS
						21.36.900. As of Register 196 (January 2011),
						the regulations attorney made a conforming technical revision under
						AS
						44.62.125(b)(6), to the
						authority citation that follows
						3 AAC 28.849, so that the citation to former
						AS
						21.36.150 now refers to the renumbered
						statute, AS
						21.36.900.
Authority:
AS
						21.06.090
AS 21.36.020
AS 21.36.030
AS 21.36.900
AS 21.42.120
AS
						21.42.130