Haw. Code R. § 16-171-902 - Applicability

(a) This subchapter shall apply to all life insurance policies, with or without nonforfeiture values, and subject to the exceptions and conditions set forth in subsections (b) and (c).

(b) Exceptions:

(1) This subchapter shall not apply to any individual life insurance policy issued on or after the effective date of this regulation if the policy is issued in accordance with, and as a result of, the exercise of a reentry provision contained in the original life insurance policy of the same or greater face amount, issued before the effective date of this subchapter, that guarantees the premium rates of the new policy. This subchapter also shall not apply to subsequent policies issued as a result of the exercise of such a provision, or a derivation of the provision, in the new policy;

(2) This subchapter shall not apply to any universal life policy that meets all of the following requirements:

(A) The universal life policy has a secondary guarantee period, if any, that is five years or less;

(B) The specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the CSO valuation tables as defined in section 16-171-903, and the applicable valuation interest rate; and

(C) The initial surrender charge is not less than one hundred per cent of the first year annualized specified premium for the secondary guarantee period.

(3) This subchapter shall not apply to any variable life insurance policy or universal life insurance policy that provides for life insurance and the amount or duration of which varies according to the investment experience of any separate account or accounts;

(4) This subchapter shall not apply to a group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required in order to continue coverage in force for a period in excess of one year.

(c) Conditions:

(1) Calculation of the minimum valuation standard for policies other than universal life policies with guaranteed nonlevel gross premiums, guaranteed nonlevel benefits, or both, shall be in accordance with the provisions of section 16-171-905.

(2) Calculation of the minimum valuation standard for flexible premium and fixed premium universal life insurance policies, which contain provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period, shall be in accordance with the provisions of section 16-171-906.

Notes

Haw. Code R. § 16-171-902

[Eff and comp 2/2/2017] (Auth: HRS §§ 431:5-401, 432:2-201) (Imp: HRS § 431:5-307)