20-2601 Definitions

20-2601. Definitions

In this chapter, unless the context otherwise requires:

1. "Affiliate" means a person who directly or indirectly controls, is controlled by or is under common control with an insurer, a person who for a specific fee or commission regularly furnishes investment advice to an insurer with respect to the insurer's separate accounts or a director, officer, partner or employee or a member of the immediate family of a director, officer, partner or employee of an insurer, controlling or controlled person or person providing investment advice.

2. "Assumed investment rate" means the rate of investment return that is required to be credited to a variable life insurance policy, after the deduction of charges for taxes, investment expenses and mortality and expense guarantees, to maintain the variable death benefit in an amount that is equal at all times to the amount of the death benefit, other than incidental insurance benefits, that would be payable under the plan of insurance if the death benefit did not vary according to the investment experience of the separate account.

3. "Benefit base" means the amount to which the net investment return is applied.

4. "Control" or "controlling" has the same meaning prescribed in section 20-481 and includes the terms "controlled by" and "under common control with".

5. "Flexible premium policy" means a variable life insurance policy other than a scheduled premium policy.

6. "General account" means all of the assets of an insurer other than assets in separate accounts established pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer.

7. "Incidental insurance benefit" means all of the insurance benefits in a variable life insurance policy except the variable death benefit and the minimum death benefit. Incidental insurance benefit includes accidental death and dismemberment benefits, disability benefits, guaranteed insurability options, family income or term riders.

8. "Insurance producer" means any person, corporation, partnership, or other legal entity that is licensed by this state as a life insurance producer.

9. "Minimum death benefit" means the amount of the guaranteed death benefit, except incidental insurance benefits, that is payable under a variable life insurance policy regardless of the investment performance of the separate account.

10. "Net investment return" means the rate of investment return in a separate account that is applied to the benefit base.

11. "Policy processing day" means the day on which the charges that are authorized in a policy are deducted from the policy's cash value.

12. "Scheduled premium policy" means a variable life insurance policy under which both the amount and timing of premium payments are fixed by the insurer.

13. "Separate account" means a separate account established pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer.

14. "Variable death benefit" means the amount of the death benefit, except incidental insurance benefits, that is payable under a variable life insurance policy, that is dependent on the investment performance of the separate account and that the insurer must pay in the absence of any minimum death benefit.

15. "Variable life insurance policy" means an individual policy that provides for life insurance, the amount or duration of which varies according to the investment experience of any separate account or accounts that are established and maintained by the insurer pursuant to section 20-651 or the insurance laws of the insurer's state of domicile if the insurer is a foreign or alien insurer.