Louisiana Administrative Code
Title 37 - INSURANCE Part
Part XIII - Regulations
Chapter 109 - Regulation Number 85-Valuation of Life Insurance Policies
Section XIII-10905 - Applicability
Universal Citation: LA Admin Code XIII-10905
Current through Register Vol. 50, No. 9, September 20, 2024
A. This regulation shall apply to all life insurance policies, with or without nonforfeiture values, issued on or after the effective date of this regulation, subject to the following exceptions and conditions.
1.
Exceptions
a. This regulation shall not apply
to any individual life insurance policy issued on or after the effective date
of this regulation 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 the effective date of
this regulation, that guarantees the premium rates of the new policy. This
regulation also shall not apply to subsequent policies issued as a result of
the exercise of such a provision, or a derivation of the provision, in the new
policy.
b. This regulation shall
not apply to any universal life policy that meets all the following
requirements:
i. secondary guarantee period,
if any, is five years or less;
ii.
specified premium for the secondary guarantee period is not less than the net
level reserve premium for the secondary guarantee period based on the
CSO valuation tables as defined in
§10907 and the applicable valuation
interest rate; and
iii. the initial
surrender charge is not less than 100 percent of the first year annualized
specified premium for the secondary guarantee period.
c. This regulation shall not apply to any
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.
d. This
regulation shall not apply to any 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.
e. This regulation shall not apply to a group
life insurance certificate unless the certificate provides for a stated or
implied schedule of maximum gross premiums required in order to continue
coverage in force for a period in excess of one year.
2. Conditions
a. Calculation of the minimum valuation
standard for policies with guaranteed nonlevel gross premiums or guaranteed
nonlevel benefits (other than universal life policies), or both, shall be in
accordance with the provisions of
§10911
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 the provisions of
§10913
AUTHORITY NOTE: Promulgated in accordance with R.S.22:3, 22:163, 22:168 and the Administrative Procedure Act, R.S. 49:950 et seq.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
