Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 400 - Life, Annuities and Health
Chapter 1 - Life Insurance and Annuity Standards
Section 20 CSR 400-1.100 - Universal Life
Current through Register Vol. 48, No. 18, September 15, 2023
PURPOSE: This rule supplements existing regulations on life insurance policies in order to accommodate the development and issuance of universal life insurance plans.
(2) This regulation applies to all individual universal life insurance policies except variable universal life.
where PVFB is the present value of all benefits guaranteed at issue assuming future guaranteed maturity premiums are paid by the policy owner and taking into account all guarantees contained in the policy or declared by the insurer;
are present values of an annuity of one (1) year payable on policy anniversaries beginning at ages x and x+t, respectively, and continuing until the highest attained age at which a premium may be paid under the policy. x is defined as the issue age and t is defined as the duration of the policy;
where a-b is as described in section 376.380.1(3)b, RSMo 1986 for the plan of insurance defined at issue by the Guaranteed Maturity Premiums and all guarantees contained in the policy or declared by the insurer;
are defined in paragraphs (3)(A)3. and 4.;
Additional acquisition expense charges shall be the excess of the expense charges, other than service charges, actually made in an insurance-increase year over the averaged administrative expense charges for that year. An insurance-increase year shall be the year beginning on the date of increase in the amount of insurance by policy owner request (or by the terms of the policy);
where äx+t and äx are present values of an annuity of one (1) per year payable on policy anniversaries beginning at ages x+t and x, respectively, and continuing until the highest attained age at which a premium may be paid under the policy, both on the mortality and interest bases guaranteed in the policy. An unamortized unused additional expense allowance shall be the unused additional expense allowance multiplied by a similar ratio of annuities, with
replaced by an annuity beginning on the date as of which the additional expense allowance was determined.
where PVFB is the present value of all benefits guaranteed at issue assuming future premiums are paid by the policyholder and all guarantees contained in the policy or declared by the insurer;
is the present value of an annuity of one (1) per year payable on policy anniversaries beginning at age x and continuing until the highest attained age at which a premium may be paid under the policy;
shall be replaced by an annuity beginning on the date as of which the declaration became effective and payable until the end of the period covered by the declaration; and
(5) Mandatory Policy Provisions.
(6) Disclosure of information about the policy being applied for shall follow the standards in section 375.1500 to 375.1530, RSMo.
(7) Periodic Disclosure to Policy Owner.
(8) Interest-Indexed Universal Life Insurance Policies.
I ___________________________________ ,
(Position or Relationship to Insurer)
for the XYZ Life Insurance Company (The Insurer) in the state of
(State of Domicile of Insurer)
I am a member of the American Academy of Actuaries (or if not, state other qualifications to sign annual statement actuarial opinions).
I have examined the interest-indexed universal life insurance policies of the Insurer in force as of December 31, 20XX, encompassing __________________ number of policies and $ _____________ of insurance in force.
I have considered the provisions of the policies. I have considered any reinsurance agreements pertaining to such policies, the characteristics of the identified assets and the investment policy adopted by the Insurer as they affect future insurance and investment cash flows under such policies and related assets. My examination included such tests and calculations as I considered necessary to form an opinion concerning the insurance and investment cash flows arising from the policies and related assets.
I relied on the investment policy of the Insurer and on projected investment cash flows as provided by ___________________ .
(Chief Investment Officer of the Insurer)
Tests were conducted under various assumptions as to future interest rates, and particular attention was given to those provisions and characteristics that might cause future insurance and investment cash flows to vary with changes in the level of prevailing interest rates.
In my opinion, the anticipated insurance and investment cash flows referred to make good and sufficient provision for the contractural obligations of the Insurer under these insurance policies.
(Signature of Actuary)
AUTHORITY: section 374.045, RSMo 2000.* This rule was previously filed as 4 CSR 190-13.240. Original rule filed Oct. 15, 1984, effective April 11 , 1985. Amended: Filed Feb. 21, 2001, effective Sept. 30, 2001.
*Original authority: 374.045, RSMo 1967, amended 1993, 1995.