Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 83 - Regulation 35-Variable Life Insurance Model Regulation › Section XIII-8301 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. As used in
				Regulation 35:
Affiliate of an Insurer
- 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.
Agent
- any person, corporation, partnership,
				  or other legal entity which is licensed by this state as a life insurance
				  agent.
Assumed Investment Rate
- 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
- the amount to which the net
				  investment return is applied.
Commissioner
- the Insurance Commissioner of
				  this state.
Control
(including the terms
controlling, controlled by
, and
under common control
				  with
)-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 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
- any variable life
				  insurance policy other than a scheduled premium policy as specified in the
				  definition of
scheduled premium policy.
General Account
- all assets of the insurer
				  other than assets in separate accounts established pursuant to Section 1500 of
				  the insurance laws of this state, 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
- 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
- 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
- the rate of
				  investment return in a separate account to be applied to the benefit
				  base.
Person
- an individual, corporation,
				  partnership, association, trust, or fund.
Policy Processing Day
- the day on which
				  charges authorized in the policy are deducted from the policy's cash
				  value.
Scheduled Premium Policy
- any variable life
				  insurance policy under which both the amount and timing of premium payments are
				  fixed by the insurer.
Separate Account
- a separate account
				  established pursuant to Section 1500 of the Insurance Laws of this state 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
- 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.
Variable Life Insurance Policy
- 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 1500 of the Insurance Laws of this state or pursuant to the
				  corresponding Section of the Insurance Laws of the state of domicile of a
				  foreign or alien insurer.
AUTHORITY NOTE:
				  Promulgated in accordance with Title 22, Section 2 of the Insurance Laws of
				  Louisiana.