South Dakota Administrative Rules › Title 20 - PUBLIC SAFETY › Article 20:06 - INSURANCE › Chapter 20:06:08 - Life insurance and annuities › Section 20:06:08:38 - Definitions

Current through Register Vol. 51, page 10, July 15, 2024
Terms used in this chapter mean:
(1) "2001 CSO Mortality Table," that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table developed by the Society of Actuaries Individual Life Insurance Valuation Mortality Task Force, and adopted by the NAIC in December 2002. Unless the context indicates otherwise, the 2001 CSO Mortality Table includes both the ultimate form of that table and the select and ultimate form of that table and includes both the smoker and nonsmoker mortality tables and the composite mortality tables. It also includes both the age-nearest-birthday and age-last-birthday bases of the mortality tables;
(2) "2001 CSO Mortality Table (F)," that mortality table consisting of the rates of mortality for female lives from the 2001 CSO Mortality Table;
(3) "2001 CSO Mortality Table (M)," that mortality table consisting of the rates of mortality for male lives from the 2001 CSO Mortality Table;
(4) "Composite mortality tables," mortality tables with rates of mortality that do not distinguish between smokers and nonsmokers;
(5) "Direct-response solicitation," a solicitation through a sponsoring or endorsing entity or individually sold solely through mail, telephone, the Internet, or other mass communication media;
(6) "Existing insurer," the insurance company whose policy or contract is or will be changed or affected in a manner described within the definition of "replacement";
(7) "Existing policy or contract," an individual life insurance policy (policy) or annuity contract (contract) in force, including a policy under a binding or conditional receipt or a policy or contract that is within an unconditional refund period;
(8) "Financed purchase," the purchase of a new policy involving the actual or intended use of funds obtained by the withdrawal, surrender, or borrowing from values of an existing policy to pay all of part of any premium due on the new policy;
(9) "Illustration," a presentation or depiction that includes non-guaranteed elements of a policy of life insurance over a period of years as defined in chapter 20:06:38;
(10) "Policy summary," for purposes of §§
									20:06:08:49  to 20:06:08:65, inclusive;
(a) For policies or contracts other than universal life policies, a written statement regarding a policy or contract which shall contain to the extent applicable, but need not be limited to, the following information: current death benefit; annual contract premium; current cash surrender value; current dividend; application of current dividend; and amount of outstanding loan;
(b) For universal life policies, a written statement that shall contain at least the following information: the beginning and end date of the current report period; the policy value at the end of the previous report period and at the end of the current report period; the total amounts that have been credited or debited to the policy value during the current report period, identifying each by type (e.g., interest, mortality, expense and riders); the current death benefit at the end of the current report period on each life covered by the policy; the net cash surrender value of the policy as of the end of the current report period; and the amount of outstanding loans, if any, as of the end of the current report period;