Ohio Administrative Code › Title 3901 - Department of Insurance › Chapter 3901-6 - Life Insurance › Section 3901-6-07 - Universal life insurance

Current through all regulations passed and filed through July 1, 2024
(A) Purpose
The purpose of this rule is to supplement existing regulations
				on life insurance policies in order to accommodate the development and issuance
				of universal life insurance plans.
(B) Authority
This rule is promulgated pursuant to the authority vested in
				the superintendent under sections
				3901.041,
				3903.72
				to
				3903.7211,
				3915.05,
				3915.07
				to
				3915.073,
				3915.09,
				3915.14,
				and
				3921.16
				of the Revised Code.
(C)
			 Scope
This rule applies to all individual universal life insurance
				policies and group universal life insurance certificates except those policies
				defined under paragraph (C)(19) of rule
				3901-6-08
				of the Administrative Code (variable life insurance).
(D) Definitions
As used in this rule:
(1) "Account Value" means the amount to which
			 separately identified interest credits and mortality, expense, or other charges
			 are made under a universal life insurance policy.
(2) "Cash Surrender Value" is the account
			 value less any applicable surrender charges.
(3) "Fixed Premium Universal Life Insurance
			 Policy" means a universal life insurance policy other than a flexible premium
			 universal life insurance policy.
(4) "Flexible Premium Universal Life
			 Insurance Policy" means a universal life insurance policy which permits the
			 policyowner to vary, independently of each other, the amount or timing of one
			 or more premium payments or the amount of insurance.
(5) "Guaranteed Maturity Fund" at any
			 duration is that amount which, together with future guaranteed maturity
			 premiums, will mature the policy based on all policy guarantees at
			 issue.
(6) "Guaranteed Maturity
			 Premium" for flexible premium universal life insurance policies shall be that
			 level gross premium, paid at issue and periodically thereafter over the period
			 during which premiums are allowed to be paid, which will mature the policy on
			 the latest maturity date, if any, permitted under the policy, otherwise at the
			 highest age in the valuation mortality table, for an amount which is in
			 accordance with the policy structure. The guaranteed maturity premium is
			 calculated at issue based on all policy guarantees at issue excluding
			 guarantees linked to an external referent. The guaranteed maturity premium for
			 fixed premium universal life insurance policies shall be the premium defined in
			 the policy which at issue provides the minimum policy guarantees. The
			 guaranteed maturity premium for both flexible and fixed premium policies shall
			 be adjusted for death benefit corridors provided by the policy. The guaranteed
			 maturity premium may be less than the premium necessary to pay all
			 charges.
(7) "Interest-indexed
			 Universal Life Insurance Policy" means any universal life insurance policy
			 where the interest credits are linked to an external referent.
(8) "Maturity Amount" shall be the initial
			 death benefit where the death benefit is level over the lifetime of the policy
			 except for the existence of a minimumdeath-benefit corridor, or shall be the
			 specified amount where the death benefit equals a specified amount plus the
			 account value or cash surrender value except for the existence of a
			 minimum-death-benefit corridor.
(9)
			 "Net Surrender Value" is the cash surrender value less any amounts outstanding
			 as policy loans.
(10) "Structural
			 Changes" are those changes which are separate from the automatic workings of
			 the policy. Such changes usually would be initiated by the policyowner and
			 include changes in the guaranteed benefits, changes in the latest maturity
			 date, or changes in allowable premium payment period. For fixed premium
			 universal life policies with redetermination of all credits and charges no more
			 frequently than annually, on policy anniversaries, structural changes also
			 include changes in guaranteed benefits, or in fixed premiums, unanticipated by
			 the guaranteed maturity premium for such policies at the date of issue, even if
			 such changes arise from automatic workings of the policy.
(11) "Universal Life Insurance Policy" means
			 any individual life insurance policy or group life insurance certificate under
			 the provisions of which separately identified interest credits, other than in
			 connection with dividend accumulations, premium deposit funds, or other
			 supplementary accounts, and mortality and expense charges are made to the
			 policy. A universal life insurance policy may provide for other credits and
			 charges, such as charges for the cost of benefits provided by rider.