South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:38 - Life insurance illustrations › Section 20:06:38:01 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) Actuarial Standards Board," the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice;
(2) "Assumed expenses," expenses as calculated in §
									20:06:38:34  that may be used in the calculation of the disciplined current scale for a policy form;
(3) "Basic Illustration," a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements;
(4) "Contract premium," the gross premium that is required to be paid under a fixed premium policy, including the premium for a rider for which benefits are shown in the illustration;
(5) "Currently payable scale," a scale of nonguaranteed elements in effect for a policy form as of the preparation date of the illustration or declared to become effective within the next 95 days;
(6) "Generic name," a short title descriptive of the policy being illustrated, such as "whole life," "term life," or "flexible premium adjustable life";
(7) "Guaranteed elements," the premiums, benefits, values, credits, or charges under a policy of life insurance that are guaranteed and determined at issue;
(8) "Illustrated scale," a scale of nonguaranteed elements currently being illustrated that is not more favorable to the policy owner than the lesser of the disciplined current scale or the currently payable scale;
(9) "Illustration," a presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years and that is either a "basic illustration," a "supplemental illustration," or an "in-force illustration";
(10) "Illustration actuary," an actuary meeting the requirements of §
									20:06:38:25  who certifies to illustrations based on the standard of practice contained in the
Actuarial Standard of Practice No. 24 - Compliance With The NAIC Life Insurance Illustrations Model Regulation,
effective March 31, 1996;
(11) "In-force illustration," an illustration furnished at any time after the policy that it depicts has been in force for one year or more;
(12) "Lapse-supported illustration," an illustration of a policy form failing the test of self-supporting as defined in this section, under a modified persistency rate assumption using persistency rates underlying the disciplined current scale for the first 5 years and 100 percent policy persistency thereafter;
(13) "Minimum assumed expenses," the minimum expenses that may be used in the calculation of the disciplined current scale for a policy form;
(14) "Nonterm group life," a group policy or individual policies of life insurance which are issued to members of an employer group or another permitted group and which meet the following requirements:
(a) Every plan of coverage was selected by the employer or another group representative;
(b) Some portion of the premium is paid by the group or through payroll deduction; and
(c) Group underwriting or simplified underwriting is used;