Iowa Administrative Code › Agency 191 - Insurance Division › Life and Health Insurance › Chapter 33 - Variable Life Insurance Model Regulation › Rule 191-33.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
As used in this chapter:
"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.
"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.
"Benefit base"
means the amount to which the
				  net investment return is applied.
"Commissioner"
means the same as defined in
				  rule 191-1.1 (502,505).
"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 of 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 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.
"Flexible premium policy"
means any variable
				  life insurance policy other than a scheduled premium policy as specified in
				  subrule 33.2(15).
"General account"
means all assets of the
				  insurer other than assets in separate accounts established pursuant to Iowa
				  Code section
				  508A.1 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.
"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.
"May"
is permissive.
"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.
"Net investment return"
means the rate of
				  investment return in a separate account to be applied to the benefit
				  base.
"Person"
means an individual, corporation,
				  partnership, association, trust, or fund.
"Policy processing day"
means the day on
				  which charges authorized in the policy are deducted from the policy's cash
				  value.
"Producer"
means the same as defined in rule
				  191-10.2 (522B).
"Scheduled premium policy"
means any
				  variable life insurance policy under which both the amount and timing of
				  premium payments are fixed by the insurer.
"Separate account"
means a separate account
				  established pursuant to Iowa Code section
				  508A.1 or
				  pursuant to the corresponding section of the insurance laws of the state of
				  domicile of a foreign or alien insurer.
"Shall"
is mandatory.
"Variable death benefit"
means the amount of
				  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.
"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 Iowa Code section
				  508A.1 or
				  pursuant to the corresponding section of the insurance laws of the state of
				  domicile of a foreign or alien insurer.