Utah Admin. Code R590-198-2 - Purpose and Scope
(1) The purpose of
this rule is to provide:
(a) tables of select
mortality factors;
(b) rules for
use of select mortality factors;
(c) minimum standards for the valuation of
plans with nonlevel premiums or benefits; and
(d) minimum standards for the valuation of
plans with secondary guarantees.
(2) The method for calculating basic reserves
defined in this rule constitutes the Commissioners' Reserve Valuation Method
for policies to which this rule applies.
(3) This rule applies to a life insurance
policy, with or without nonforfeiture values, issued on or after January 4,
2000, subject to the following exceptions and conditions.
(4) This rule does not apply to :
(a) an individual life insurance policy
issued on or after January 4, 2000, 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 January 4, 2000, that guarantees the premium rates of the new policy
;
(b) a subsequent policy issued as
a result of the exercise of a provision described in Subsection (4)(a), or a
derivation of the provision, in the new policy;
(c) a universal life policy that meets the
following requirements:
(i) any secondary
guarantee period is five years or less;
(ii) a specified premium for the secondary
guarantee period is not less than the net level reserve premium for the
secondary guarantee period based on the 1980 CSO valuation tables as defined in
Subsection R590-198-3(1)
and the applicable valuation interest rate; and
(iii) the initial surrender charge is not
less than 100% of the first year annualized specified premium for the secondary
guarantee period;
(c) a
variable life insurance policy that provides for life insurance, the amount or
duration of which varies according to the investment experience of any separate
account or accounts; and
(d) a
group life insurance certificate unless the certificate provides for a stated
or implied schedule of maximum gross premiums required to continue coverage in
force for a period in excess of one year.
(5) Conditions.
(a) Calculation of the minimum valuation
standard for a policy with guaranteed nonlevel gross premiums or guaranteed
nonlevel benefits, other than universal life policies, or both, shall be in
accordance with Section
R590-198-5.
(b) Calculation of the minimum valuation
standard for flexible premium and fixed premium universal life insurance
policies that 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 Section R590-198-6.
Notes
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