Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 80 - SYNTHETIC GUARANTEED INVESTMENT CONTRACTS › Section 210-80-004 - Definitions

Current through June 17, 2024
As used in this regulation, the following terms shall have
				  these meanings:
004.01 Account assets
"Account assets" means the assets in the segregated portfolio
				  plus any assets held in the general account or a separate account to meet the
				  asset maintenance requirements.
004.02 Actuarial opinion and memorandum
"Actuarial opinion and memorandum" means the opinion and
				  memorandum of the valuation actuary required to be submitted to the Director
				  pursuant to Subsection 010.02 of this regulation.
004.03 Affirmatively approved
"Affirmatively approved" means approval of an insurer's plan
				  of operation for a class of contracts containing the form of contract under
				  review, after the plan of operation associated with the class of contracts has
				  been reviewed by the insurer's domiciliary insurance department, and the plan
				  of operation has been found to be in compliance with guidelines substantially
				  similar to the NAIC Synthetic Guaranteed Investment Contracts Model Regulation
				  by the domiciliary insurance department. Affirmatively approved does not mean
				  approval as a result of the deemer provision.
004.04 Appointed actuary
"Appointed actuary" means the qualified actuary appointed or
				  retained either directly by or by the authority of the board of directors
				  through an executive officer of the company to prepare the annual statement of
				  actuarial opinion for the company as a whole pursuant to Neb. Rev. Stat. §
										44-8905.
004.05 Asset maintenance requirement
"Asset maintenance requirement" means the requirement to
				  maintain assets to fund contract benefits in accordance with Section 010 of
				  this regulation.
004.06
				"Class of contracts" or "contracts in the class"
"Class of contracts" or "contracts in the class" means the
				  set of all contracts to which a given plan of operation
				  pertains.
004.07 Contract
				value record
"Contract value record" means an accounting record, provided
				  by the contract in relation to the segregated portfolio of assets, that is
				  credited with a fixed rate of return over regular periods, and that is used to
				  measure the extent of the insurer's obligation to the contract holder. The
				  fixed rate of return credited to the contract value record is determined by
				  means of a crediting rate formula or declared at the inception of the contract
				  and valid for the entire term of the contract.
004.08 Crediting rate formula
"Crediting rate formula" means a mathematical formula used to
				  calculate the fixed rate of return credited to the contract value record during
				  any rate period and based in part upon the difference between the contract
				  value record and the market value record amortized over an appropriate period.
				  The fixed rate of return calculated by means of this formula may reflect prior
				  and current market conditions with respect to the segregated portfolio, but may
				  not reference future changes in market conditions.
004.09 Department
"Department" means the Nebraska Department of Insurance and
				  any employee of the Department authorized to act on behalf of the
				  Department.
004.10 Director
"Director" means the Director of the Nebraska Department of
				  Insurance.
004.11 Duration
"Duration" means, with respect to the segregated portfolio
				  assets or guaranteed contract liabilities, a measure of price sensitivity to
				  changes in interest rates, such as the Macaulay duration or option-adjusted
				  duration.
004.12 Fair market
				value
"Fair market value" means a reasonable estimate of the amount
				  that a knowledgeable buyer of an asset would be willing to pay, and a
				  knowledgeable seller of an asset would be willing to accept, for the asset
				  without duress in an arm's length transaction. In the case of a publicly traded
				  security, the fair market value is the price at which the security is traded
				  or, if no price is available, a price that appropriately reflects the latest
				  bid and asked prices for the security. In the case of a debt instrument that is
				  not publicly traded, the fair market value is the discounted present value of
				  the asset calculated at a reasonable discount rate. For all other non-publicly
				  traded assets, fair market value will be determined in accordance with
				  valuation practices customarily used within the financial
				  industry.
004.13 Guaranteed
				minimum benefits
"Guaranteed minimum benefits" means contract benefits on a
				  specified date that may be either.
004.13A A principal guarantee, with or
				without a fixed minimum interest rate guarantee, related to the segregated
				portfolio;
004.13B An assurance as
				to the future investment return or performance of the segregated portfolio;
				or
004.13C The fair market value of
				the segregated portfolio, to the extent that the fair market value of the
				assets determines the contract holder's benefits.