28 Tex. Admin. Code § 3.802 - Definitions
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.
(1) Affiliate of an
insurer--Any person, directly or indirectly, controlling, controlled by, or
under common control with such insurer; any person who regularly furnishes
investment advice to such insurer with respect to its separate accounts for
which a specific fee or commission is charged; or any director, officer,
partner, or employee of such insurer, controlling or controlled person, or
person providing investment advice or any member of the immediate family of
such person.
(2) Agent--Any person,
corporation, partnership, or other legal entity which is licensed by this state
as a life insurance agent.
(3)
Assumed investment rate--The rate of investment return which would be required
to be credited to a variable life contract, 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.
(4) Benefit base--The amount to which the net
investment return is applied.
(5)
Cash surrender value--The net cash surrender value plus any amounts outstanding
as contract loans.
(6)
Commissioner--The commissioner of insurance of this state.
(7) Contract cost factors--Those amounts
which affect the price per thousand of life insurance coverage or other
benefits. They include interest, mortality, expense charges, and fees,
including any surrender charges, but not persistency assumptions.
(8) Contract processing day--The day on which
charges authorized in the contract are deducted from the contract
value.
(9) Contract value--The
amount to which interest is credited, and against which separately identified
mortality charges, expense charges, fees, and other charges are
debited.
(10) 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 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 is
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 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 such determination, that control exists in fact,
notwithstanding the absence of a presumption to that effect.
(11) Flexible premium contract--Any variable
life contract other than a scheduled premium variable life contract as defined
in the definition of scheduled premium variable life contract.
(12) General account--All assets of the
insurer other than assets in separate accounts established pursuant to
Insurance Code Chapter 1152, or pursuant to the corresponding sections of the
insurance laws of the state of domicile of a foreign or alien insurer, whether
or not for variable life insurance.
(13) Incidental insurance benefit--All
insurance benefits in a variable life contract, 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, or term riders.
(14) Minimum death benefit--The amount of the
guaranteed death benefit, other than incidental insurance benefits, payable
under a variable life contract regardless of the investment performance of the
separate account.
(15) Net cash
surrender value--The maximum amount payable to the contract owner upon
surrender.
(16) Net investment
return--The rate of investment return in a separate account to be applied to
the benefit base.
(17) Person--An
individual, corporation, partnership, association, trust, or fund.
(18) Scheduled premium contract--Any variable
life contract under which both the amount and timing of premium payments are
fixed by the insurer.
(19) Separate
account--A separate account established pursuant to Insurance Code Chapter
1152, or pursuant to the corresponding section of the insurance laws of the
state of domicile of a foreign or alien insurer.
(20) Structural changes--Those changes which
are separate from the automatic workings of the contract. Such changes usually
would be initiated by the contract owner and include changes in the guaranteed
benefits, changes in latest maturity date, or changes in allowable premium
payment period.
(21) Variable death
benefit--The amount of the death benefit, other than incidental benefits
payable under a variable life contract dependent on the investment performance
of the separate account, which the insurer would have to pay in the absence of
any minimum death benefit.
(22)
Variable life contract--Any individual variable life insurance contract which
provides for life insurance the amount or duration of which varies according to
the investment experience of any separate account or accounts established and
maintained by the insurer as to such contract, pursuant to Insurance Code
Chapter 1152, or pursuant to the corresponding section of the insurance laws of
the state of domicile of a foreign or alien insurer.
Notes
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