Ohio Administrative Code › Title 3901 - Department of Insurance › Chapter 3901-6 - Life Insurance › Section 3901-6-08 - Variable life insurance

Current through all regulations passed and filed through July 1, 2024
(A) Purpose
The purpose of this rule is to amplify sections
				3907.15 and
				3911.01 of the Revised Code to
				provide for the regulation of fixed premium and flexible premium variable life
				insurance policies.
(B)
			 Authority
This rule is promulgated pursuant to the authority vested in
				the superintendent under section
				3901.041 of the Revised
				Code.
(C) Definitions
(1) "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.
(2) "Agent" means any person, corporation,
			 partnership, or other legal entity which is licensed by this state as a life
			 insurance agent with a variable line of authority.
(3) "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.
(4) "Benefit
			 base" means the amount, to which the net investment return is
			 applied.
(5) "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 
									is presumed to exist if any person, directly or
			 indirectly, owns, controls, holds with the power to vote, or holds proxies
			 representing more than ten per cent of the voting securities of any other
			 person. This presumption may be rebutted by a showing made to the satisfaction
			 of the superintendent that control does not exist in fact. The superintendent
			 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.
(6) "Flexible premium
			 policy" means any variable life insurance policy other than a scheduled premium
			 policy as specified in paragraph (C)(14) of this rule.
(7) "General account" means all assets of the
			 insurer other than assets in separate accounts established pursuant to section
			 3907.15 of the Revised Code, 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.
(8) "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.
(9) "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.
(10)
			 "Net investment return" means the rate of investment return in a separate
			 account to be applied to the benefit base.
(11) "Person" means an
			 individual, corporation, partnership, association, trust, or fund.
(12)
			 "Policy processing day" means the day on which charges authorized in the policy
			 are deducted from the policy's cash value.
(13) "Scheduled
			 premium policy" means any variable life insurance policy under which both the
			 amount and timing of premium payments are fixed by the insurer.
(14)
			 "Separate account" means a separate account established pursuant to section
			 3907.15 of the Revised Code or
			 pursuant to the corresponding section of the insurance laws of the state of
			 domicile of a foreign or alien insurer.
(15) "Superintendent"
			 means the insurance superintendent of Ohio.
(16) "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.
(17) "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 section
			 3907.15 of the Revised Code, or
			 pursuant to the corresponding section of the insurance laws of the state of
			 domicile of a foreign or alien insurer.