OAR 836-051-0520
Definitions


For the purposes of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation):

(1)

“Actuarial Standards Board” means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.

(2)

“Contract premium” means the gross premium that is required to be paid under a fixed premium policy, including the premium for a rider for which benefits are shown in the illustration.

(3)

“Currently payable scale” means a scale of non-guaranteed elements in effect for a policy form as of the preparation date of the illustration or declared to become effective within the next 95 days.

(4)

“Disciplined current scale” means a scale of non-guaranteed elements constituting a limit on illustrations currently being illustrated by an insurer, that is reasonably based on actual recent historical experience, as certified annually by an illustration actuary designated by the insurer. Further guidance in determining the disciplined current scale as contained in standards established by the Actuarial Standards Board may be relied upon if the standards:

(a)

Are consistent with all provisions of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation);

(b)

Limit a disciplined current scale to reflect only actions that have already been taken or events that have already occurred;

(c)

Do not permit a disciplined current scale to include any projected trends of improvements in experience or any assumed improvements in experience beyond the illustration date; and

(d)

Do not permit assumed expenses to be less than minimum assumed expenses.

(5)

“Generic name” means a short title descriptive of the policy being illustrated, such as “whole life,” “term life” or “flexible premium adjustable life.”

(6)

“Guaranteed elements” and “non-guaranteed elements” have the following meanings:

(a)

“Guaranteed elements” means the premiums, benefits, values, credits or charges under a policy of life insurance that are guaranteed and determined at issue;

(b)

“Non-guaranteed elements” means the premiums, benefits, values, credits or charges under a policy of life insurance that are not guaranteed or not determined at issue.

(7)

“Illustrated scale” means a scale of non-guaranteed elements currently being illustrated that is not more favorable to the policy owner than the lesser of:

(a)

The disciplined current scale; or

(b)

The currently payable scale.

(8)

“Illustration” means a presentation or depiction that includes non-guaranteed elements of a policy of life insurance over a period of years and that is one of the following three types:

(a)

“Basic illustration” means a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and non-guaranteed elements;

(b)

“Supplemental illustration” means an illustration furnished in addition to a basic illustration that meets the applicable requirements of OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation), and that may be presented in a format differing from the basic illustration, but may depict only a scale of non-guaranteed elements that is permitted in a basic illustration;

(c)

“In force illustration” means an illustration furnished at any time after the policy that the illustration depicts has been in force for one year or more.

(9)

“Illustration actuary” means an actuary meeting the requirements of OAR 836-051-0580 (Annual Report; Notice to Policy Owners) who certifies to illustrations based on the standard of practice promulgated by the Actuarial Standards Board.

(10)

“Lapse-supported illustration” means an illustration of a policy form failing the test of self-supporting as described in OAR 836-051-0500 (Purpose; Authority) to 836-051-0600 (Trade Practice Regulation), under a modified persistency rate assumption using persistency rates underlying the disciplined current scale for the first five years and 100 percent policy persistency thereafter.

(11)

“Minimum assumed expenses” means the minimum expenses that may be used in the calculation of the disciplined current scale for a policy form. An insurer may choose to designate each year the method of determining assumed expenses for all policy forms from the following:

(a)

Fully allocated expenses;

(b)

Marginal expenses, except that marginal expenses may be used only if greater than a generally recognized expense table, and if no generally recognized expense table is approved, fully allocated expenses must be used; and

(c)

A generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the Director.

(12)

“Non-term group life” means a group policy or individual policies of life insurance issued to members of an employer group or other permitted group when:

(a)

Every plan of coverage was selected by the employer or other group representative;

(b)

Some portion of the premium is paid by the group or through payroll deduction; and

(c)

Group underwriting or simplified underwriting is used.

(13)

“Policy owner” means the owner named in the policy or the certificate holder in the case of a group policy.

(14)

“Premium outlay” means the amount of premium assumed to be paid by the policy owner or other premium payer out-of-pocket.

(15)

“Self-supporting illustration” means an illustration of a policy form for which it can be demonstrated that, when using experience assumptions underlying the disciplined current scale, for all illustrated points in time on or after the fifteenth policy anniversary or the twentieth policy anniversary for second-or-later-to-die policies (or upon policy expiration if sooner), the accumulated value of all policy cash flows equals or exceeds the total policy owner value available. For this purpose, policy owner value must include cash surrender values and any other illustrated benefit amounts available at the policy owner’s election.
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 836-051-0520’s source at or​.us