Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 33 - Variable Life Insurance › Section 33-2 - Definitions

Current through July 10, 2024
Authority: IC 27-1-3-7
Affected: IC 27-1-5-1; IC 27-1-12-7
Sec. 2.
As used in 760 IAC 1-33:
(a) "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" means any person, corporation,
				partnership, or other legal entity which is licensed by this state as a life
				insurance agent.
(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) "Commissioner" means the insurance
				commissioner 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 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 percent (10%) 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 make 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" means any variable life insurance policy other than a scheduled premium
				policy as specified in (o).
(h)
				"General account" means all assets of the insurer other than assets in separate
				accounts established pursuant to IC
				27-1-5-1
				Class 1(c) 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 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" 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 IC
				27-1-5-1
				Class 1(c) 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.
(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
				or accounts established and maintained by the insurer as to such policy,
				pursuant to IC
				27-1-5-1
				Class 1(c) 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.