31 Pa. Code § 82.1 - Definitions
The following words and terms, when used in this chapter, have the following meanings, unless the content clearly indicates otherwise:
Act-The Insurance Company Law of 1921 (40 P. S. § § 341-991).
Affiliate of an insurer-A person directly or indirectly controlling, controlled by or under common control with the insurer; a person who regularly furnishes investment advice to the insurer with respect to its separate accounts for which a specific fee or commission is charged; or a director, officer, partner or employe of the insurer, controlling or controlled person, or person providing investment advice or a member of the immediate family of the person.
Agent-A person, corporation, partnership or other legal entity which is licensed by the Commonwealth as a life insurance agent or broker.
Assumed investment rate-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-The amount to which the net investment return is applied.
Commissioner-The Insurance Commissioner of the Commonwealth.
Control, including the terms controlling, controlled by and under common control with-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 another person. This presumption may be rebutted by a showing made 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 the determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
Department-The Insurance Department of the Commonwealth.
Flexible premium policy-A variable life insurance policy which permits the policyholder to vary, independently of each other, the amount or timing of one or more premium payments.
General account-The assets of the insurer other than assets in separate accounts established under section 406.2 of the act (40 P. S. § 506.2), or under 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-The 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 and term riders.
Minimum death benefit-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-The rate of investment return in a separate account to be applied to the benefit base.
Person-Individual, corporation, partnership, association trust or fund.
Policy processing day-The day on which charges authorized in the policy are deducted from the policy's cash value.
Scheduled premium policy-A variable life insurance policy other than a flexible premium policy.
Separate account-A separate account established under section 406.2 of the act or the corresponding section of the insurance laws of the state of domicile of a foreign or alien insurer.
Variable death benefit-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-An individual policy which provides for life insurance, the amount or duration of which varies according to the investment experience of separate accounts established and maintained by the insurer as to the policy, under section 406.2 of the act or under the corresponding section of the insurance laws of the state of domicile of a foreign or alien insurer.
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