Mississippi Administrative Code › Title 19 - Department of Insurance › Part 2 - Life Insurance › Chapter 5 - (84-101) Variable Life Insurance › Rule 19-2-5.03 - Definitions

Current through June 25, 2024
A. Affiliate.
"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 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.
"Agent" means all individuals partnerships, and any corporate
				  incorporated pursuant to Title 79, Chapter 9, Mississippi Code of 1972 and
				  defined therein.
C. Assumed
				Investment Rate
"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.
"Benefit base" means the amount, to which the net investment
				  return is applied.
E.
				Commissioner.
"Commissioner" means the Insurance Commissioner of the State
				  of Mississippi.
F. Control.
"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. Flexible
				Premium Policy.
"Flexible premium policy" means any variable life insurance
				  policy other than a scheduled premium policy as specified in Subsection (o) of
				  Section 2 of this regulation.
H. General Account.
"General account" means all assets of the insurer other than
				  assets in separate accounts established pursuant to Section
				  83-7-27
				  of the
Mississippi Code of 1972
, Annotated and
				  Amended, or pursuant to the corresponding section of the Insurance Laws of the
				  state of domicile 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.
I.
				Incidental Insurance Benefit.
"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 benefits, guaranteed insurability options,
				  family income, or term riders.
J. May.
"May" is permissive.
K. Minimum Death Benefit.
"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.
L.
Net Investment
				Return.
"Net investment return" means the rate of investment return
				  in a separate account to be applied to the benefit base.
M. Person.
"Person" means an individual, corporation, partnership,
				  association, trust, fund, joint stock company, unincorporated organization, and
				  similar entity or any policy are deducted from the policy's cash
				  value.
N. Policy Processing
				Day.
"Policy processing day" means the day on which charges
				  authorized in the policy are deducted from the policy's cash
				  value.
O. Scheduled Premium
				Policy.
"Scheduled premium policy" means any variable life insurance
				  policy under which both the amount and timing of premium payments are fixed by
				  the insurer.
P. Separate
				Account.
"Separate account" means a separate account established
				  pursuant to Section 83- 7-27,
Mississippi Code of
				  1972
, Annotated and Amended, or pursuant to the corresponding
				  Section of the Insurance Laws of the state of domicile of a foreign or alien
				  insurer.
Q. Shall.
"Shall" is mandatory.
R. Variable Death Benefit.
"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 any minimum
				  death benefit.
S. Variable
				Life Insurance Policy.
"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
				  Sections
				  83-7-27
				  and
				  83-7-41,
Mississippi Code of 1972
, Annotated and Amended, or
				  pursuant to the corresponding section of the Insurance Laws of the state of
				  domicile of a foreign or alien insurer.
Miss. Code Ann. §
										83-7-45
				  (Rev. 2011)