North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 12 - LIFE AND HEALTH DIVISION › Section .0400 - LIFE: GENERAL NATURE › Section 12 .0434 - VARIABLE LIFE INSURANCE: DEFINITIONS

Current through Register Vol. 39, No. 2, July 15, 2024
As used in this Rule and in
				  11 NCAC
				  12 .0435 through
				  11 NCAC
				  12 .0443:
(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, 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.
(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 specified under
				11 NCAC
				12 .0438(b)(2), specified by
				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 Insurance
				Commissioner of this state.
(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
				10 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
				G.S.
				58-7-95, 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 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 in a separate account to be applied to the benefit base
				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) "Separate account" means a separate
				account established for variable life insurance pursuant to
				G.S.
				58-7-95 or pursuant to the corresponding
				section of the insurance laws of the state of domicile of a foreign or alien
				insurer.
(14) "Shall" is
				mandatory.
(15) "Variable death
				benefit" means the amount of the death benefit, other than incidental insurance
				benefits, payable under 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.
(16) "Variable life insurance policy" means
				any individual or group 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
				G.S.
				58-7-95 or pursuant to the corresponding
				section of the insurance laws of the state of domicile of a foreign or alien
				insurer.
Authority
				  G.S.
				  58-2-40;
				  58-7-95;
Eff. January
				  1, 1978;
Readopted Eff. September 26, 1978;
Amended
				  Eff. February 1, 1992;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. May 1, 2018.