Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 830 - VALUATION OF LIFE INSURANCE POLICIES
Section 031-830-3 - Scope
Universal Citation: 02 ME Code Rules ยง 031-830-3
Current through 2024-38, September 18, 2024
This rule shall apply to all life insurance policies, with or without nonforfeiture values, issued on or after the effective date of this rule, subject to the following exceptions and conditions.
A. Exceptions
(1) This rule shall not apply to any
individual life insurance policy issued on or after the effective date of this
rule 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 rule,
that guarantees the premium rates of the new policy. This rule 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.
(2) This rule shall not apply to any
universal life policy that meets all the following requirements:
(a) Secondary guarantee period, if any, is
five (5) years or less;
(b)
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 Section
4(F) and the
applicable valuation interest rate; and
(c) The initial surrender charge is not less
than 100 percent of the first year annualized specified premium for the
secondary guarantee period.
(3) This rule 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.
(4) This rule 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.
(5) This rule 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.
B. Conditions
(1) 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 Section
6.
(2) 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 Section
7.
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