Ga. Comp. R. & Regs. R. 120-2-32-.03 - Definitions
For the purpose of this Regulation:
(1) "Affiliate" of an insurer means any
person, directly or indirectly, controlling, controlled by, or under common
control with such insurer; any person who regularly furnishes investment advice
to such insurer with respect to its variable life insurance separate accounts
for which a specific fee or commission is charged; or any director, officer,
partner, or employee of any such insurer, controlling or controlled person, or
person providing investment advice or any member of the immediate family of
such person.
(2) "Agent" means any
person licensed by this State as a life insurance agent.
(3) "Assumed investment rate" means the rate
of investment return which would be required to be credited to a variable life
insurance policy, after deduction of charges for taxes, investment expenses,
and mortality and expense guarantees, to maintain the variable death benefit
equal at all times to the amount of death benefit, other than incidental
insurance benefits, which would be payable under the plan of insurance if the
death benefit did not vary according to the investment experience of the
separate account.
(4) "Benefit
base" means the amount to which the net investment return is applied.
(5) "Commissioner" means the Commissioner of
Insurance of the State of Georgia.
(6) "Control" (including the terms
"controlling," "controlled by" and "under common control with") means the
possession, direct or indirect, of the power to direct or cause the direction
of the management and policies of a person, whether through the ownership of
voting securities, by contract other than a commercial contract for goods or
nonmanagement services, or otherwise, unless the power is the result of an
official position with or corporate office held by the person. Control shall be
presumed to exist if any person, directly or indirectly, owns, controls, holds
with the power to vote, or holds proxies representing more than ten percent
(10%) of the voting securities of any other person. This presumption may be
rebutted by a showing made to the satisfaction of the Commissioner that control
does not exist in fact. The Commissioner may determine, after furnishing all
persons in interest notice and opportunity to be heard and making specific
findings of fact to support such determination, that control exists in fact,
notwithstanding the absence of a presumption to that effect.
(7) "Flexible premium policy" means any
variable life insurance policy other than a scheduled premium policy as
specified in paragraph (15) of this Rule.
(8) "General account" means all assets of the
insurer other than assets in separate accounts established pursuant to Section
33-11-36 of the Georgia Insurance Code, or pursuant to the corresponding
section of the insurance laws of the State of domicile of a foreign or alien
insurer, whether or not for variable life insurance.
(9) "Incidental insurance benefit" means all
insurance benefits in a variable life insurance policy, other than the variable
death benefit and the minimum death benefit, including but not limited to
accidental death and dismemberment benefits, disability income benefits,
guaranteed insurability options, family income, or fixed benefit term
riders.
(10) "May" is
permissive.
(11) "Minimum death
benefit" means the amount of the guaranteed death benefit, other than
incidental insurance benefits, payable under a variable life insurance policy
regardless of the investment performance of the separate account.
(12) "Net investment return" means the rate
of investment return in a separate account to be applied to the benefit
base.
(13) "Person" means an
individual, corporation, partnership, association, trust, or fund.
(14) "Policy processing day" means the day on
which charges authorized in the policy are deducted from the policy's cash
value.
(15) "Scheduled premium
policy" means any variable life insurance policy under which both the amount
and timing of premium payments are fixed by the insurer.
(16) "Separate account" means a separate
account established for variable life insurance pursuant to Section 33-11-36 of
the Georgia Insurance Code or pursuant to the corresponding section of the
insurance laws of the state of domicile of a foreign or alien
insurer.
(17) "Shall" is
mandatory.
(18) "Variable death
benefit" means the amount of the death benefit, other than incidental insurance
benefits, payable under a variable life insurance policy dependent on the
investment performance of the separate account, which the insurer would have to
pay in the absence of the minimum death benefit.
(19) "Variable life insurance policy" means
any individual policy which provides for life insurance the amount or duration
of which varies according to the investment experience of any separate account
or accounts established and maintained by the insurer as to such policy,
pursuant to Section 33-11-36 of the Georgia Insurance Code or pursuant to the
corresponding section of the insurance laws of the state of domicile of a
foreign or alien insurer.
Notes
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