Mich. Admin. Code R. 500.841 - Definitions
Rule 1. As used in these rules:
(a) "Affiliate" of an insurer means any of
the following:
(i) Any person, directly or
indirectly, controlling, controlled by, or under common control with, such
insurer.
(ii) Any person who
regularly furnishes investment advice to an insurer with respect to its
variable life insurance separate accounts for which a specific fee or
commission is charged.
(iii) Any
person who is a director, officer, partner, or employee, or a member of the
immediate family of any person who is a director, officer, partner or employee
of any person described in paragraph (i) or (ii) of this subdivision.
(b) "Agent" means any person,
corporation, partnership, or other legal entity which is licensed by this state
as a life insurance agent.
(c)
"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
the 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.
(d) "Benefit base" means the amount to which
the net investment return is applied.
(e) "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, to the satisfaction of the commissioner, that control does not exist
in fact. The commissioner 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.
(f) "Flexible premium policy" means any
variable life insurance policy other than a scheduled premium policy as
specified in subdivision (1) of this rule.
(g) "General account" means all assets of the
insurer other than assets in separate accounts established pursuant to section
925 of Act No. 218 of the Public Acts of 1956, as amended, being S500. 925 of
the Michigan Compiled Laws, or pursuant to the corresponding section of the
insurance law of the state of domicile of a foreign or alien insurer, whether
or not for variable life insurance.
(h) "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, any
of the following:
(i) Accidental death and
dismemberment benefits.
(ii)
Disability benefits.
(iii)
Guaranteed insurability options.
(iv) Family income.
(v) Term riders.
(i) "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.
(j) "Net investment return" means the rate of
investment return actually credited to a variable life insurance policy, after
deduction of any charges in accordance with the terms of the policy.
(k) "Policy processing day" means the day on
which charges authorized in the policy are deducted from the policy's cash
value.
(l) "Scheduled premium
policy" means any variable life insurance policy under which both the amount
and timing of premium payments are fixed by the insurer.
(m) "Separate account" means a separate
account for variable life insurance established under section 925 of Act No.
218 of the Public Acts of 1956, as amended, being S500.925 of the Michigan
Compiled Laws, or pursuant to the corresponding section of the insurance law of
the state of domicile of a foreign or alien insurer.
(n) "Variable death benefit" means the amount
of the death benefit, other than incidental insurance benefits, which is
payable under a variable life insurance policy dependent on the investment
performance of the separate account and which the insurer would have to pay in
the absence of the minimum death benefit.
(o) "Variable life insurance policy" means
any individual policy which provides for life insurance with the amount or
duration of the death benefit varying according to the investment experience of
any separate account or accounts established and maintained by the insurer as
to such policy, as provided for in section 925 of Act No. 218 of the Public
Acts of 1956, as amended, being S500.925 of the Michigan Compiled Laws, or
pursuant to the corresponding section of the insurance law of the state of
domicile of a foreign or alien insurer.
Notes
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