OAR 836-051-0370
Minimum Benefit Standards

(1)

For purposes of this rule, accelerated benefits consist of:

(a)

The risk portion of the accelerated benefit, determined by deducting the cash values in the contract from the total accelerated benefit amount; and

(b)

The portion of the accelerated benefit equal to the cash value in the policy at the time of acceleration. Any amount included in the accelerated benefit that is accessible through another policy provision is subject to that policy provision if more favorable to the policy holder or certificate holder. Such an amount must be separately identified.

(2)

An insurer may require a premium charge or cost of insurance charge for the accelerated benefit provision. Such a charge shall be based on sound actuarial principles. In the case of group insurance, the additional cost may also be included in the experience rating.

(3)

The following provisions apply to deferred financing options relating to an accelerated benefit provision:

(a)

An insurer may pay a present value of the face amount or portion of the face amount being accelerated. The calculation must be based on any applicable actuarial discount appropriate to the policy design. The interest rate or interest rate methodology used in the calculation must be based on sound actuarial principles and disclosed in the contract and actuarial memorandum;

(b)

An insurer may accrue an interest charge on the amount of the accelerated benefit as part of a lien against the death proceeds. The interest rate or interest rate methodology used in the calculation must be based on sound actuarial principles and disclosed in the contract and actuarial memorandum;

(c)

For purposes of subsections (a) and (b) of this section, the maximum interest rate used on the risk portion must not be greater than the greater of:

(A)

The current yield on 90-day treasury bills; or

(B)

The current maximum statutory adjustable policy loan interest rate. If a policy, certificate or rider does not have a loan provision, the maximum rate shall not be greater than the fixed statutory policy loan interest rate.

(d)

For purposes of subsections (a) and (b) of this section, the interest rate used on the portion that is equal in amount to the cash value of the contract at the time of the benefit acceleration must not be more than the policy or certificate loan interest rate stated in the policy, certificate or rider.

(4)

When an accelerated benefit is payable, not more than a pro rata reduction may be made in the cash value based on the percentage of death benefits accelerated to produce the accelerated benefit payment.

(5)

An insurer may consider the payment of accelerated benefits, any administrative expense charges, any future premiums and any accrued interest to be a lien against the death benefit of the policy, certificate or rider and may restrict the access to the cash value to any excess of the cash value over the sum of any other outstanding loans and the lien. Future access to additional policy loans may also be limited to any excess of the cash value over the sum of the lien any any other outstanding policy loans.

(6)

When payment of an accelerated benefit results in a pro rata reduction in the cash value, the insurer may not apply the payment toward repaying an amount greater than a pro rata portion of any outstanding policy loans.

Source: Rule 836-051-0370 — Minimum Benefit Standards, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=836-051-0370.

836‑051‑0005
Statutory Authority 836‑051‑0010
Definitions 836‑051‑0015
Disclosure Requirements 836‑051‑0020
General Requirements 836‑051‑0030
Purpose and Applicability 836‑051‑0032
Definition 836‑051‑0034
Exemptions 836‑051‑0036
Disclosure Requirements 836‑051‑0038
Insurer Duties 836‑051‑0040
Trade Practice Regulation 836‑051‑0101
Statutory Authority 836‑051‑0106
Life Insurance Valuation and Nonforfeiture Standards 836‑051‑0110
Life Insurance Nonforfeiture Standards for Men and Women 836‑051‑0115
Smoker/Nonsmoker Mortality Tables 836‑051‑0150
Individual Deferred Annuities Surrender Charge 836‑051‑0153
Limitations on Surrender Charge Scales 836‑051‑0156
Fair Surrender Charges 836‑051‑0200
Authority 836‑051‑0210
Purpose 836‑051‑0220
Definitions 836‑051‑0230
Individual Annuity or Pure Endowment Contracts 836‑051‑0235
Application of the 2012 IAR Mortality Table 836‑051‑0240
Group Annuity or Pure Endowment Contracts 836‑051‑0250
Application of the 1994 GAR Table 836‑051‑0300
Statutory Authority 836‑051‑0310
Acknowledgement of Concurrence for Payout from Assignee or Beneficiary 836‑051‑0320
Payment Options 836‑051‑0330
Disclosure 836‑051‑0340
Exercise of the Accelerated Benefit 836‑051‑0350
Waiver of Premium 836‑051‑0360
Discrimination 836‑051‑0370
Minimum Benefit Standards 836‑051‑0380
Actuarial Disclosure and Reserves 836‑051‑0500
Purpose 836‑051‑0510
Applicability and Scope 836‑051‑0520
Definitions 836‑051‑0530
Policies to Be Illustrated 836‑051‑0540
General Rules and Prohibitions 836‑051‑0550
Standards for Basic Illustrations 836‑051‑0560
Standards for Supplemental Illustrations 836‑051‑0570
Delivery of Illustration and Record Retention 836‑051‑0580
Annual Report 836‑051‑0590
Annual Certifications 836‑051‑0600
Trade Practice Regulation 836‑051‑0700
Authorization, Genetic Testing 836‑051‑0750
Purpose 836‑051‑0755
Definitions 836‑051‑0760
Minimum Valuation Mortality Standards 836‑051‑0765
Minimum Valuation Interest Rate Standards 836‑051‑0770
Minimum Valuation Method Standards 836‑051‑0775
Transition Rules 836‑051‑0900
Purpose 836‑051‑0905
Applicability and Scope 836‑051‑0910
Definitions 836‑051‑0915
Standards for the Disclosure Document and Buyer’s Guide 836‑051‑0920
Report to Contract Owners 836‑051‑0925
Trade Practice Regulation
Last Updated

Jun. 8, 2021

Rule 836-051-0370’s source at or​.us