Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 400 - Life, Annuities and Health › Chapter 1 - Life Insurance and Annuity Standards › Section 20 CSR 400-1.030 - Variable Life Insurance

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule was adopted pursuant to the
				  provisions of section
				  374.045,
				  RSMo and implements and defines sections
				  376.309,
				  376.670
				  and
				  376.675,
				  RSMo.
(1) Definitions.
(A) Affiliate of an insurer means any person,
				directly or indirectly, controlling, controlled by or under common control with
				the insurer; any person who regularly furnishes investment advice to that
				insurer with respect to its separate accounts for which a specific fee or
				commission is charged; or any director, officer, partner or employee of the
				insurer, controlling or controlled person or person providing investment advice
				or any member of the immediate family of the person.
(B) Insurance producer means any person,
				corporation, partnership or legal entity which is licensed by this state as a
				life insurance producer.
(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 to which
				the net investment return is applied.
(E) Director means the insurance director 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
				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 director that control
				does not exist in fact. The director may determine, after furnishing all
				persons in interest, notice and opportunity to be heard and making specific
				Findings of Fact to support the determination, that control exists in fact,
				notwithstanding the absence of a presumption to that effect.
(G) Flexible premium policy means any
				variable life insurance policy other than a scheduled premium policy as
				specified in subsection (1)(O).
(H)
				General account means all assets of the insurer other than assets in separate
				accounts established pursuant to section
				376.309,
				RSMo (1986) 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.
(I) Incidental insurance benefit means all
				insurance benefits in a variable life insurance policy, other than the variable
				death benefit and 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 is permissive.
(K) 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 means the rate of investment return in a separate account to
				be applied to the benefit base.
(M)
				Person means an individual, corporation, partnership, association, trust or
				fund.
(N) 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 means any variable life insurance policy under which both the
				amount and timing of premium payments are fixed by the insurer.
(P) Separate account means a separate account
				established pursuant to section
				376.309,
				RSMo or pursuant to the corresponding section of the insurance laws of the
				state of domicile of a foreign or alien insurer.
(Q) Shall is mandatory.
(R) 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 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(s) established and maintained by the insurer
				as to the policy, pursuant to section
				376.309,
				RSMo 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.