Idaho Administrative Code
Title IDAPA 18 - Insurance, Department of
Rule 18.07.03 - VALUATION OF LIFE INSURANCE POLICIES INCLUDING THE USE OF SELECT MORTALITY FACTORS
Section 18.07.03.001 - SCOPE
Universal Citation: ID Admin Code 18.07.03.001
Current through August 31, 2023
01. Scope. Provides Tables of select mortality factors and minimum standards for plan valuations with: (4-6-23)
a. Nonlevel premiums or benefits; or
(4-6-23)
b. Secondary guarantees.
(4-6-23)
02. Method. The method for calculating basic reserves defined herein will constitute the commissioners' reserve valuation method for applicable policies. (4-6-23)
03. Applicability. This chapter applies to all life insurance policies, with or without nonforfeiture values, issued on or after March 30, 2001,subject to these exceptions and conditions. (4-6-23)
a. Exceptions. This chapter does not apply
to: (4-6-23)
i. An individual life insurance
policy issued on or after March 30, 2001, if the policy is issued under, and
because of, the exercise of a reentry provision in the original life insurance
policy of the same or greater face amount, issued before March 30, 2001, that
guarantees the new policy's premium rates. This chapter also does not apply to
later policies issued because of the exercise of such a provision, or a
derivation of the provision, in the new policy. (4-6-23)
ii. A universal life policy that meets all
the following requirements: (4-6-23)
(1)
Secondary guarantee period, if any, is five (5) years or less;
(4-6-23)
(2) Specified premium for
the secondary guarantee period is at least the net level reserve premium for
the secondary guarantee period based on the CSO valuation tables, as defined,
and the applicable valuation interest rate; and (4-6-23)
(3) The initial surrender charge is at least
one hundred percent (100%) of the first year annualized specified premium for
the secondary guarantee period. (4-6-23)
iii. 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.
(4-6-23)
iv. A variable universal
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. (4-6-23)
v. A group
life insurance certificate unless the certificate provides for a stated or
implied schedule of maximum gross premiums needed to continue coverage in force
for a period beyond one (1) year. (4-6-23)
b. Conditions: (4-6-23)
i. The minimum valuation standard for
policies with guaranteed nonlevel gross premiums or guaranteed nonlevel
benefits (other than universal life policies), or both, will be calculated per
Section 012.
(4-6-23)
ii. The minimum valuation
standard for flexible premium and fixed premium universal life insurance
policies, which contain provisions resulting in the ability of a policyholder
to keep a policy in force over a secondary guarantee period, will be calculated
per Section 013.
(4-6-23)
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