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 836-031-0210 - Definitions, Application and Explanation of Technical Terms Used

Current through Register Vol. 63, No. 7, July 1, 2024
As used in OAR 836-031-0200  to 836-031-0300, the following
				terms have the following definitions and applications and are explained as
				follows:
(1) "Annual claim cost" means
			 the net annual cost per unit of benefit before the addition of claim settlement
			 expenses, other policy expenses or a margin for profit or
			 contingencies.
(2) "Date of
			 disablement" means the earliest date on which the insured is considered as
			 being disabled under the definition of disability in the contract, based on a
			 doctor's evaluation or other evidence. Normally this date will coincide with
			 the start of any elimination period.
(3) "Elimination period" means a number of
			 days, weeks or months specified in a policy, starting at the beginning of each
			 period of loss, during which no benefits are payable.
(4) "Gross premium" means the amount of
			 premium charged by the insurer and includes the net premium (based only on
			 claim-cost) for the risk, together with any loading for expenses, profit or
			 contingencies.
(5) "Group
			 insurance" includes blanket insurance and any other forms of group insurance,
			 and franchise insurance.
(6) "Level
			 premium" means a premium calculated to remain unchanged throughout either the
			 lifetime of the policy or some shorter projected period of years. The premium
			 need not be guaranteed. If the premium is not guaranteed, although it is
			 calculated to remain level, it may be changed if any of the assumptions on
			 which it was based is revised at a later time.
(7) "Long-term care insurance" has the
			 meaning given that term in ORS
			 743.652.
(8) "Modal premium" means the premium paid
			 according to the billing frequency selected in the contract, which could be
			 annual, semi-annual quarterly, monthly or weekly.
(9) "Negative reserve" means a negative value
			 of the terminal reserve, which occurs when the values of the benefits are
			 decreasing with advancing age or duration.
(10) "Preliminary term reserve method" means
			 the method of valuation in which the valuation net premium for each year
			 falling within the preliminary term period is exactly sufficient to cover the
			 expected incurred claims of that year, so that the terminal reserves will be
			 zero at the end of the year. At the end of the preliminary term period, a new
			 constant valuation net premium (or stream of changing valuation premiums)
			 becomes applicable such that the present value of all such premiums is equal to
			 the present value of all claims expected to be incurred following the end of
			 the preliminary term period.
(11)
			 "Reserve" includes all items of benefit liability, whether in the nature of
			 incurred claim liability or in the nature of contract liability relating to
			 future periods of coverage, and whether the liability is accrued or
			 unaccrued.
(12) "Terminal reserve"
			 means the reserve at the end of a contract year equal to the present value of
			 benefits expected to be incurred after that contract year minus the present
			 value of future valuation net premiums.
(13) "Unearned premium reserve" means the
			 reserve that values that portion of the premium paid or due to the insurer that
			 is applicable to the period of coverage extending beyond the valuation
			 date.
(14) "Valuation net modal
			 premium" means the modal fraction of the valuation net annual premium that
			 corresponds to the gross modal premium in effect on any contract to which
			 contract reserves apply. Thus if the mode of payment in effect is quarterly,
			 the valuation net modal premium is the quarterly equivalent of the valuation
			 net annual premium.
Stat. Auth.: ORS
				  731.244 & ORS
				  733.080
Stats. Implemented: ORS
				  733.080