North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-04 - Life Insurance › Chapter 45-04-02 - Variable Contracts › Section 45-04-02-02 - Definitions

Current through Supplement No. 393, July, 2024
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 variable life insurance 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 who under the laws of this state
				  is licensed as an insurance agent, solicitor, general agent, or broker, with
				  respect to the sale or solicitation for the sale of life insurance and
				  annuities.
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, not less than the amount
				  determined under the specifications of subdivision b of subsection 2 of section
				  45-04-02-12, in accordance with
				  the terms of the variable life insurance policy, to which the difference
				  between the net investment return and the assumed investment rate is applied in
				  determining the variable benefits of the policy.
5. "Commissioner" means the commissioner of insurance, unless
				  otherwise specified.
6. "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 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 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.
7. "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, 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 income benefits, guaranteed
				  insurability options, family income, or fixed benefit term riders.
9. "May" is permissive.
10. "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.
11. "Net investment return" means the rate of investment
				  return actually credited to a variable life insurance policy, after deduction
				  of charges for taxes, investment expenses, and mortality and expense guarantees
				  in accordance with the terms of the policy.
12. "Person" means an individual, corporation, partnership,
				  association, trust, or fund.
13. "Regulations" means rules and regulations.
14. "Separate account" means a separate account established
				  under North Dakota Century Code sections 26.1-33-13 and 26.1-34-11.
15. "Shall" is mandatory.
16. "Variable annuity contract" means any policy or contract
				  which provides for annuity benefits that vary according to the investment
				  experience of any separate account or accounts maintained by the insurer as to
				  such policy or contract, as provided for in North Dakota Century Code sections
				  26.1-33-13 and 26.1-34-11.
17. "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 the minimum
				  death benefit.
18. "Variable life insurance policy" means any individual
				  policy which provides for life insurance which varies according to the
				  investment experience of any separate account or accounts established and
				  maintained by the insurer as to such policy, as provided for in North Dakota
				  Century Code sections 26.1-33-13 and 26.1-34-11.
General Authority:
NDCC 26.1-33-17, 26.1-34-11
Law Implemented:
NDCC 26.1-33,
				  26.1-34