OAR 836-031-0210
Definitions, Application and Explanation of Technical Terms Used


As used in OAR 836-031-0200 (Scope, Authority; Statutes Implemented; Application) to 836-031-0300 (Reserves for Waiver of Premium), the following terms have the following definitions and applications and are explained as follows:

(1)

“Annual claim cost” means the net annual cost per unit of benefit before the addition of claim settlement expenses, other policy expenses or a margin for profit or contingencies.

(2)

“Date of disablement” means the earliest date on which the insured is considered as being disabled under the definition of disability in the contract, based on a doctor’s evaluation or other evidence. Normally this date will coincide with the start of any elimination period.

(3)

“Elimination period” means a number of days, weeks or months specified in a policy, starting at the beginning of each period of loss, during which no benefits are payable.

(4)

“Gross premium” means the amount of premium charged by the insurer and includes the net premium (based only on claim-cost) for the risk, together with any loading for expenses, profit or contingencies.

(5)

“Group insurance” includes blanket insurance and any other forms of group insurance, and franchise insurance.

(6)

“Level premium” means a premium calculated to remain unchanged throughout either the lifetime of the policy or some shorter projected period of years. The premium need not be guaranteed. If the premium is not guaranteed, although it is calculated to remain level, it may be changed if any of the assumptions on which it was based is revised at a later time.

(7)

“Long-term care insurance” has the meaning given that term in ORS 743.652 (Definitions for ORS 743.650 to 743.665).

(8)

“Modal premium” means the premium paid according to the billing frequency selected in the contract, which could be annual, semi-annual quarterly, monthly or weekly.

(9)

“Negative reserve” means a negative value of the terminal reserve, which occurs when the values of the benefits are decreasing with advancing age or duration.

(10)

“Preliminary term reserve method” means the method of valuation in which the valuation net premium for each year falling within the preliminary term period is exactly sufficient to cover the expected incurred claims of that year, so that the terminal reserves will be zero at the end of the year. At the end of the preliminary term period, a new constant valuation net premium (or stream of changing valuation premiums) becomes applicable such that the present value of all such premiums is equal to the present value of all claims expected to be incurred following the end of the preliminary term period.

(11)

“Reserve” includes all items of benefit liability, whether in the nature of incurred claim liability or in the nature of contract liability relating to future periods of coverage, and whether the liability is accrued or unaccrued.

(12)

“Terminal reserve” means the reserve at the end of a contract year equal to the present value of benefits expected to be incurred after that contract year minus the present value of future valuation net premiums.

(13)

“Unearned premium reserve” means the reserve that values that portion of the premium paid or due to the insurer that is applicable to the period of coverage extending beyond the valuation date.

(14)

“Valuation net modal premium” means the modal fraction of the valuation net annual premium that corresponds to the gross modal premium in effect on any contract to which contract reserves apply. Thus if the mode of payment in effect is quarterly, the valuation net modal premium is the quarterly equivalent of the valuation net annual premium.

Source: Rule 836-031-0210 — Definitions, Application and Explanation of Technical Terms Used, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-031-0210.

836‑031‑0200
Scope, Authority
836‑031‑0210
Definitions, Application and Explanation of Technical Terms Used
836‑031‑0220
Principles Governing Reserves
836‑031‑0230
Claim Reserves
836‑031‑0240
Premium Reserves
836‑031‑0250
Contract Reserves
836‑031‑0260
Reinsurance
836‑031‑0270
Specific Standards for Morbidity
836‑031‑0280
Specific Standards for Interest
836‑031‑0290
Specific Standards for Mortality
836‑031‑0300
Reserves for Waiver of Premium
836‑031‑0400
Allowed Assets
836‑031‑0410
Title Insurance Unearned Premium Reserve
836‑031‑0600
Purpose
836‑031‑0605
Valuation Manual
836‑031‑0610
Authority
836‑031‑0620
Scope
836‑031‑0630
Definitions
836‑031‑0640
General Requirements
836‑031‑0670
Statement of Actuarial Opinion Based On an Asset Adequacy Analysis
836‑031‑0680
Description of Actuarial Memorandum Including an Asset Adequacy Analysis and Regulatory Asset Adequacy Summary
836‑031‑0690
Additional Considerations for Analysis
836‑031‑0750
Purpose, Authority and Applicability
836‑031‑0755
Applicability
836‑031‑0760
Definitions
836‑031‑0765
General Calculation Requirements for Basic Reserves and Premium Deficiency Reserves
836‑031‑0770
Calculation of Minimum Valuation Standard for Policies with Guaranteed Nonlevel Gross Premiums or Guaranteed Nonlevel Benefits (Other than Universal Life Policies)
836‑031‑0775
Calculation of Minimum Valuation Standard for Flexible Premium and Fixed Premium Universal Life Insurance Policies that Contain Provisions Resulting in the Ability of a Policyowner to Keep a Policy in Force Over a Secondary Guarantee Period
836‑031‑0800
Purpose, authority
836‑031‑0805
Definitions
836‑031‑0810
2001 CSO Preferred Class Structure Table
836‑031‑0815
Conditions
836‑031‑0855
Recoupment of Assessments by Oregon Insurance Guaranty Association
Last Updated

Jun. 8, 2021

Rule 836-031-0210’s source at or​.us