Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 80 - RULES GOVERNING VARIABLE LIFE INSURANCE › Article II - Definitions › Section 14VAC5-80-20 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
As used in this chapter (14VAC5-80-10 et seq.):
"Affiliate" of an insurer means any person, directly or
					 indirectly, controlling, controlled by, or under common control with such
					 insurer; any person who regularly furnishes investment advice to such insurer
					 with respect to its separate accounts for which a specific fee or commission is
					 charged; or any director, officer, partner or employee of any such insurer,
					 controlling or controlled person, or person providing investment advice or any
					 member of the immediate family of such person.
"Agent" means any person, corporation, partnership, or
					 other legal entity which is licensed by this Commonwealth as a life and health
					 insurance agent.
"Assumed investment rate" means 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" means the amount to which the net investment
					 return is applied.
"Commission" means the State Corporation Commission.
"Control" (including the terms "controlling", "controlled
					 by" and "under common control with") means 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 any other person. This
					 presumption may be rebutted by a showing made to the satisfaction of the
					 Commission that control does not exist in fact. The Commission may determine,
					 after furnishing all persons in interest notice and opportunity to be heard and
					 making specific findings of fact to support such determination, that control
					 exists in fact, notwithstanding the absence of a presumption to that
					 effect.
"Flexible premium policy" means any variable life insurance
					 policy other than a scheduled premium policy as specified in the definition of
					 that item in this section.
"General Account" means all assets of the insurer other
					 than assets in separate accounts established pursuant to § 38.2-3113 of
					 the Code of Virginia or pursuant to 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" means all 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, or term riders.
"Minimum death benefit" means 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" means the rate of investment return
					 in a separate account to be applied to the benefit base.
"Person" means any association, aggregate of individuals,
					 business, company, corporation, individual, joint stock company, organization,
					 partnership, receiver, reciprocal, or interinsurance exchange, trustee or
					 society.
"Policy processing day" means the day on which charges
					 authorized in the policy are deducted from the policy's cash value.
"Scheduled premium policy" means any variable life
					 insurance policy under which both the amount and timing of premium payments are
					 fixed by the insurer.
"Separate account" means a separate account established
					 pursuant to § 38.2-3113 of the Code of Virginia or pursuant to the
					 corresponding section of the insurance laws of the state of domicile of a
					 foreign or alien insurer.
"Variable death benefit" means 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" means any policy or
					 contract that provides for a form of life insurance as defined in §
					 38.2-102 of the Code of Virginia, the amount or duration of which varies
					 according to the investment experience of any separate account or accounts
					 established and maintained by the insurer as to such policy, pursuant to
					 §§ 38.2-3114 and 38.2-3113 of the Code of Virginia or pursuant to the
					 corresponding section of the insurance laws of the state of domicile of a
					 foreign or alien insurer.
Statutory Authority
§§ 12.1-13 and 38.2-3313 of the Code of
						Virginia.