North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-04 - Life Insurance
Chapter 45-04-12 - Valuation of Life Insurance Policies
Section 45-04-12-01 - Applicability
Universal Citation: ND Admin Code ยง 45-04-12-01
Current through Supplement No. 394, October, 2024
This chapter shall apply to all life insurance policies, with or without nonforfeiture values, issued on or after January 1, 2000, subject to the following exceptions and conditions:
1. Exceptions.
a. This chapter shall not apply to any
individual life insurance policy issued on or after January 1, 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 1, 2000, which guarantees the
premium rates of the new policy. This chapter 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 chapter shall not apply to any
universal life policy that meets all the following requirements:
(1) Secondary guarantee period, if any, is
five years or less;
(2) 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 subsection 6 of section
45-04-12-02 and the applicable
valuation interest rate; and
(3)
The initial surrender charge is not less than one hundred percent of the first
year annualized specified premium for the secondary guarantee period.
c. This chapter 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 chapter 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 chapter 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 section
45-04-12-04.
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 section
45-04-12-05.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-35
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