Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-32 - VARIABLE LIFE INSURANCE › Rule 120-2-32-.03 - Definitions

Current through Rules and Regulations filed through June 27, 2024
For the purpose of this Regulation:
(1) "Affiliate" of an insurer means any
				person, directly or indirectly, controlling, controlled by, or under common
				control with such insurer; any person who regularly furnishes investment advice
				to such insurer with respect to its variable life insurance separate accounts
				for which a specific fee or commission is charged; or any director, officer,
				partner, or employee of any such insurer, controlling or controlled person, or
				person providing investment advice or any member of the immediate family of
				such person.
(2) "Agent" means any
				person licensed by this State as a life insurance agent.
(3) "Assumed investment rate" means the rate
				of investment return which would be required to be credited to a variable life
				insurance policy, after deduction of charges for taxes, investment expenses,
				and mortality and expense guarantees, to maintain the variable death benefit
				equal at all times to the amount of death benefit, other than incidental
				insurance benefits, which would be payable under the plan of insurance if the
				death benefit did not vary according to the investment experience of the
				separate account.
(4) "Benefit
				base" means the amount to which the net investment return is applied.
(5) "Commissioner" means the Commissioner of
				Insurance of the State of Georgia.
(6) "Control" (including the terms
				"controlling," "controlled by" and "under common control with") means the
				possession, direct or indirect, of the power to direct or cause the direction
				of the management and policies of a person, whether through the ownership of
				voting securities, by contract other than a commercial contract for goods or
				nonmanagement services, or otherwise, unless the power is the result of an
				official position with or corporate office held by the person. Control shall be
				presumed to exist if any person, directly or indirectly, owns, controls, holds
				with the power to vote, or holds proxies representing more than ten percent
				(10%) of the voting securities of any other person. This presumption may be
				rebutted by a showing made to the satisfaction of the Commissioner that control
				does not exist in fact. The Commissioner may determine, after furnishing all
				persons in interest notice and opportunity to be heard and making specific
				findings of fact to support such determination, that control exists in fact,
				notwithstanding the absence of a presumption to that effect.
(7) "Flexible premium policy" means any
				variable life insurance policy other than a scheduled premium policy as
				specified in paragraph (15) of this Rule.
(8) "General account" means all assets of the
				insurer other than assets in separate accounts established pursuant to Section
				33-11-36 of the Georgia Insurance Code, or pursuant to the corresponding
				section of the insurance laws of the State of domicile of a foreign or alien
				insurer, whether or not for variable life insurance.
(9) "Incidental insurance benefit" means all
				insurance benefits in a variable life insurance policy, other than the variable
				death benefit and the minimum death benefit, including but not limited to
				accidental death and dismemberment benefits, disability income benefits,
				guaranteed insurability options, family income, or fixed benefit term
				riders.
(10) "May" is
				permissive.
(11) "Minimum death
				benefit" means the amount of the guaranteed death benefit, other than
				incidental insurance benefits, payable under a variable life insurance policy
				regardless of the investment performance of the separate account.
(12) "Net investment return" means the rate
				of investment return in a separate account to be applied to the benefit
				base.
(13) "Person" means an
				individual, corporation, partnership, association, trust, or fund.
(14) "Policy processing day" means the day on
				which charges authorized in the policy are deducted from the policy's cash
				value.
(15) "Scheduled premium
				policy" means any variable life insurance policy under which both the amount
				and timing of premium payments are fixed by the insurer.
(16) "Separate account" means a separate
				account established for variable life insurance pursuant to Section 33-11-36 of
				the Georgia Insurance Code or pursuant to the corresponding section of the
				insurance laws of the state of domicile of a foreign or alien
				insurer.
(17) "Shall" is
				mandatory.
(18) "Variable death
				benefit" means the amount of the death benefit, other than incidental insurance
				benefits, payable under a variable life insurance policy dependent on the
				investment performance of the separate account, which the insurer would have to
				pay in the absence of the minimum death benefit.
(19) "Variable life insurance policy" means
				any individual policy which provides for life insurance the amount or duration
				of which varies according to the investment experience of any separate account
				or accounts established and maintained by the insurer as to such policy,
				pursuant to Section 33-11-36 of the Georgia Insurance Code or pursuant to the
				corresponding section of the insurance laws of the state of domicile of a
				foreign or alien insurer.
O.C.G.A. Secs.
				  33-2-9,
				  33-11-36.