N.J. Admin. Code § 11:4-47.2 - Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

"Commissioner" means the Commissioner of the New Jersey Department of Banking and Insurance.

"Department" means the New Jersey Department of Banking and Insurance.

"Experience factors" means a factor experienced by the company that is variable in nature and impacts the profitability of the policy. Depending on the policy design, experience factors may include, but are not limited to, investment earnings, mortality, persistency, and expenses, because these factors can vary and the profitability of the policy is normally affected.

"Flexible factors" means premiums, premium factors (for example, interest credits, mortality charges, or expense charges) or benefits (for example, death benefits, cash or surrender values) or benefit charges (for example, surrender charges) that the insurer reserves the right to modify, subject to a flexible-factor guarantee, on the basis of future anticipated or emerging experience. Flexible factors do not include: interest or investment credits based on an external index, investment increments based on performance of assets in a variable account contract, the mortality and expense risk charge deducted in determining the investment return on a separate account, or dividends based on the principle of distributable surplus.

"Flexible-factor form" means any life insurance policy, rider or endorsement, whether participating or nonparticipating, where the insurer reserves the right to modify one or more flexible factors as defined in this section. The right to modify is subject to a flexible-factor guarantee and the modification must be based upon future anticipated or emerging experience.

"Flexible-factor guarantee" means a statement in the contract which guarantees the upper or lower limits of specific flexible factors.

"Insurer" means any person or persons, corporation, partnership, or company authorized or admitted to transact the business of life insurance in this State pursuant to Title 17B of the New Jersey Statutes.

"Qualified actuary" means an individual who is a member in good standing of the American Academy of Actuaries and who is qualified to provide a Public Statement of Actuarial Opinion in accordance with standards set forth by the Actuarial Standards Board of the American Academy of Actuaries.

Notes

N.J. Admin. Code § 11:4-47.2

Amended by R.1997 d.444, effective 10/20/1997.
See: 29 New Jersey Register 3409(a), 29 New Jersey Register 4459(c).
Amended "Qualified actuary".
Amended by R.2001 d.7, effective 1/2/2001.
See: 32 New Jersey Register 3546(a), 33 New Jersey Register 101(a).
Amended by R.2001 d.411, effective 11/5/2001.
See: 33 New Jersey Register 2268(a), 33 New Jersey Register 3749(a).
Added "Experience factors" and "Flexible factors" and deleted "Tiered factors".
Amended by R.2003 d.278, effective 7/7/2003.
See: 35 New Jersey Register 497(a), 35 New Jersey Register 2897(a).
Amended "Experience factors", "Flexible factors", and "Flexible-factor form"; added "Flexible-factor guarantee"; deleted "Minimum guarantee premium" and "Persistency bonus".