California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 11.1 - Separate Account or Accounts-Variable Life Insurance Contracts › Section 2534.1 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As used in this regulation:
(a) "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.
(b) "Agent" means any
				  person, corporation, partnership, or other legal entity which is licensed by
				  this State as a life insurance agent.
(c) "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.
(d) "Benefit base" means
				  the amount not less than the amount specified under Section
				  2534.5(b) (2)
				  specified by the terms of the variable life insurance policy to which the
				  difference between the net investment return and the assumed investment rate is
				  applied in determining the variable benefits of the policy.
(e) "Commissioner" means the Insurance
				  Commissioner of this State.
(f)
				  "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 non-management 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 (10) percent 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.
(g) "General account"
				  means all assets of the insurer other than assets in separate accounts
				  established pursuant to Section
				  10506 of
				  the Insurance Code of this State, whether or not for variable life
				  insurance.
(h) "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.
(i)
				  "May" is permissive.
(j) "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.
(k) "Net investment return" means the rate of
				  investment return actually credited to a variable life insurance policy, after
				  deduction of charges for taxes, investment expenses and mortality and expense
				  guarantees in accordance with the terms of the policy.
(l) "Person" means an individual,
				  corporation, partnership, association, trust or fund.
(m) "Separate account" means a separate
				  account established under Section
				  10506 of
				  the Insurance Code of this State for variable life insurance.
(n) "Shall" is mandatory.
(o) "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.
(p)
				  "Variable life insurance policy" means any individual policy which provides for
				  life insurance which varies according to the investment experience of any
				  separate account or accounts established and maintained by the insurer as to
				  such policy, as provided for in Section
				  10506 of
				  the Insurance Code of this State.