Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 95.00 - Variable Life Insurance › Section 95.01 - Definitions

Current through Register 1525, July 5, 2024
The following words as used in
				211 CMR
				95.00 shall, unless the context requires otherwise,
				have the following meanings:
Affiliate
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
				specified by the terms of the variable life insurance policy to which the net
				investment return is applied.
Cash Surrender Value
means the cash
				value less any policy-defined surrender charge.
Cash Value
means the amount, specified
				by the terms of the variable life insurance policy, to which separately
				identified mortality, expense, or other charges are made.
Commissioner
means the Commissioner of
				Insurance or his or her designee.
Control
means the possession, direct
				or indirect, of the power to direct the management and policies of a person,
				whether through the ownership of voting stock, by contract other than a
				commercial contract for goods or non-management services, or otherwise, unless
				the power is the result of official position or positions with, or corporate
				office or offices held by, the person or persons. Control shall be presumed to
				exist if any person directly or indirectly owns, controls, holds with the
				present power to vote, or holds proxies representing more than 10% of the
				voting stock of any other person. Such 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.
Division
means the Division of
				Insurance.
Flexible Premium Policy
means any
				variable life insurance policy other than a scheduled premium policy.
General Account
means all assets of
				the insurer, other than assets in separate accounts established pursuant to
				M.G.L. c. 175, §§ 132F or 132G, or pursuant to the corresponding
				section of the insurance law of the state of domicile of a foreign or alien
				insurer, whether or not for variable life insurance.
General Account Life Insurance Policy
means any life insurance policy other than a variable life insurance
				policy.
Incidental Insurance Benefit
means an
				insurance benefit in a variable life insurance policy, other than the variable
				death benefit and the minimum death benefit, and includes but is not limited to
				accidental death and dismemberment benefits, disability benefits, guaranteed
				insurability options, family income, or term riders.
Insurance Producer
means any person,
				corporation, partnership, or other legal entity which is licensed by the
				Commonwealth as an insurance producer.
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 Cash Surrender Value
means the
				cash surrender value less any amounts outstanding as policy loans and loan
				interest.
Net Investment Return
means the rate
				of investment return to be applied to the benefit base.
Person
means an individual, a
				corporation, a partnership, an association, a trust, a joint stock company, a
				fund, an unincorporated organization, or any similar entity or combination of
				the foregoing acting in concert.
Policy Processing Day
means the day on
				which charges authorized in the policy are deducted from the cash value.
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 an account
				established pursuant to M.G.L. c. 175, §§ 132F or 132G, or pursuant
				to the corresponding section of the insurance law 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 with respect to such
				policy, pursuant to M.G.L. c. 175, §§ 132F or 132G, or pursuant to
				the corresponding section of the insurance law of the state of domicile of a
				foreign or alien insurer.