North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-04 - Variable Life Insurance › Section 45-04-04-01 - Definitions

Current through Supplement No. 393, July, 2024
1. "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.
2. "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.
3. "Benefit base" means the amount, to which the net
				  investment return is applied.
4. "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 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 percent 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 making specific findings of fact to support such determination,
				  that control exists in fact, notwithstanding the absence of a presumption to
				  that effect.
5. "Flexible premium policy" means any variable life
				  insurance policy other than a scheduled premium policy such as specified in
				  subsection 11.
6. "General account" means all assets of the insurer other
				  than assets in separate accounts established pursuant to North Dakota Century
				  Code sections 26.1-33-13 and 26.1-34-11 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.
7. "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.
8. "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.
9. "Net investment return" means the rate of investment
				  return in a separate account to be applied to the benefit base.
10. "Policy processing day" means the day on which charges
				  authorized in the policy are deducted from the policy's cash values.
11. "Scheduled premium policy" means any variable life
				  insurance policy under which both the amount and timing of premium payments are
				  fixed by the insurer.
12. "Separate account" means a separate account established
				  pursuant to North Dakota Century Code sections 26.1-33-13 and 26.1-34-11 or
				  pursuant to the corresponding section of the insurance laws of the state of
				  domicile of a foreign or alien insurer.
13. "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.
14. "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 North
				  Dakota Century Code sections 26.1-33-13 and 26.1-34-11 or pursuant to the
				  corresponding section of the insurance laws of the state of domicile of a
				  foreign or alien insurer.
General Authority: NDCC 26.1-33-17, 26.1-34-11
Law Implemented: NDCC 26.1-33,
					 26.1-34