Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 31 - ACCOUNTING AND INVESTMENTS (ORS CHAPTER 733); REHABILITATION AND LIQUIDATION OF INSURERS (ORS CHAPTER 734) › Section 836-031-0760 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
As used in OAR 836-031-0750  to 836-031-0775:
(1) "Basic reserves" means reserves
			 calculated in accordance with ORS
			 733.306.
(2) "Contract segmentation method" means the
			 method of dividing the period from issue to mandatory expiration of a policy
			 into successive segments, with the length of each segment being defined as the
			 period from the end of the prior segment (from policy inception, for the first
			 segment) to the end of the latest policy year as determined in this section.
			 All calculations are made using the 1980 CSO valuation tables, as defined in
			 section (6) of this rule, (or any other valuation mortality table adopted by
			 the National Association of Insurance Commissioners (NAIC) after January 1,
			 2000, and adopted by rule by the Director of the Department of Consumer and
			 Business Services for this purpose), and, if elected, the optional minimum
			 mortality standard for deficiency reserves stipulated in OAR 836-031-0765(2).
			 [Example not included. See ED. NOTE.]
(3) "Deficiency reserves" means the excess,
			 if greater than zero, of minimum reserves calculated in accordance with ORS
			 733.320 over basic
			 reserves.
(4) "Guaranteed gross
			 premiums" means the premiums under a policy of life insurance that are
			 guaranteed and determined at issue.
(5) "Maximum valuation interest rates" means
			 the interest rates defined in ORS
			 733.310 (Computation of Minimum
			 Standard by Calendar Year of Issue) that are to be used in determining the
			 minimum standard for the valuation of life insurance policies.
(6) "1980 CSO Valuation tables" means the
			 Commissioners' 1980 Standard Ordinary Mortality Table (1980 CSO Table) without
			 ten-year selection factors, incorporated into the 1980 amendments to the NAIC
			 Standard Valuation Law, and variations of the 1980 CSO Table approved by the
			 NAIC, such as the smoker and nonsmoker versions approved in December
			 1983.
(7) "Scheduled gross premium"
			 means the smallest illustrated gross premium at issue for other than universal
			 life insurance policies. For universal life insurance policies, scheduled gross
			 premium means the smallest specified premium described in OAR
			 836-031-0775(1)(c), if any, or else the minimum premium described in OAR
			 836-031-0775(1)(d).
(8)
(a) "Segmented reserves" means reserves,
			 calculated using segments produced by the contract segmentation method, equal
			 to the present value of all future guaranteed benefits less the present value
			 of all future net premiums to the mandatory expiration of a policy, where the
			 net premiums within each segment are a uniform percentage of the respective
			 guaranteed gross premiums within the segment. The uniform percentage for each
			 segment is such that, at the beginning of the segment, the present value of the
			 net premiums within the segment equals:
(A)
			 The present value of the death benefits within the segment, plus
(B) The present value of any unusual
			 guaranteed cash value (according to OAR 836-031-0770(4)) occurring at the end
			 of the segment, less
(C) Any
			 unusual guaranteed cash value occurring at the start of the segment,
			 plus
(D) For the first segment
			 only, the excess of subparagraph (i) over subparagraph (ii), as follows:
(i) A net level annual premium equal to the
			 present value, at the date of issue, of the benefits provided for in the first
			 segment after the first policy year, divided by the present value, at the date
			 of issue, of an annuity of one per year payable on the first and each
			 subsequent anniversary within the first segment on which a premium falls due.
			 However, the net level annual premium shall not exceed the net level annual
			 premium on the nineteen-year premium whole life plan of insurance of the same
			 renewal year equivalent level amount at an age one year higher than the age at
			 issue of the policy.
(ii) A net one
			 year term premium for the benefits provided for in the first policy
			 year.