Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 82 - VARIABLE LIFE INSURANCE › GENERAL PROVISIONS › Section 82.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the content clearly indicates
					 otherwise:
Act
-The Insurance Company Law of 1921
					 (40
					 P. S. §§
											341-991).
Affiliate of an insurer
-A person directly
					 or indirectly controlling, controlled by or under common control with the
					 insurer; a person who regularly furnishes investment advice to the insurer with
					 respect to its separate accounts for which a specific fee or commission is
					 charged; or a director, officer, partner or employe of the insurer, controlling
					 or controlled person, or person providing investment advice or a member of the
					 immediate family of the person.
Agent
-A person, corporation, partnership
					 or other legal entity which is licensed by the Commonwealth as a life insurance
					 agent or broker.
Assumed investment rate
-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.
Benefit base
-The amount to which the net
					 investment return is applied.
Commissioner
-The Insurance Commissioner of
					 the Commonwealth.
Control, including the terms controlling,
					 controlled by and under common control with
-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% of the voting securities of another
					 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 the determination,
					 that control exists in fact, notwithstanding the absence of a presumption to
					 that effect.
Department
-The Insurance Department of the
					 Commonwealth.
Flexible premium policy
-A variable life
					 insurance policy which permits the policyholder to vary, independently of each
					 other, the amount or timing of one or more premium payments.
General account
-The assets of the insurer
					 other than assets in separate accounts established under section
					 406.2 of the act (40 P. S. §
											506.2), or under 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.
Incidental insurance benefit
-The 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 benefits, guaranteed insurability
					 options, family income and term riders.
Minimum death benefit
-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.
Net investment return
-The rate of
					 investment return in a separate account to be applied to the benefit
					 base.
Person
-Individual, corporation,
					 partnership, association trust or fund.
Policy processing day
-The day on which
					 charges authorized in the policy are deducted from the policy's cash
					 value.
Scheduled premium policy
-A variable life
					 insurance policy other than a flexible premium policy.
Separate account
-A separate account
					 established under section
					 406.2 of the act or the
					 corresponding section of the insurance laws of the state of domicile of a
					 foreign or alien insurer.
Variable death benefit
-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 any
					 minimum death benefit.
Variable life insurance policy
-An
					 individual policy which provides for life insurance, the amount or duration of
					 which varies according to the investment experience of separate accounts
					 established and maintained by the insurer as to the policy, under section
					 406.2 of the act or under the
					 corresponding section of the insurance laws of the state of domicile of a
					 foreign or alien insurer.