Section 760 IAC 1-64-1 - ScopeAuthority: IC 27-1-12-10.5
Affected: IC 27-1-12-10; IC 27-1-12.8-21
Sec. 1.
(a) Except as provided in subsection (c), this rule shall apply to all life insurance policies, with or without nonforfeiture values, issued on or after January 1, 2000.(b) The method for calculating basic reserves defined in this rule will constitute the commissioner's reserve valuation method for policies to which this rule is applicable.(c) This rule shall not apply to the following:(1) Any individual life insurance policy issued in accordance with and as a result of the exercise of a reentry provision contained in a previously issued life insurance policy if:(A) the previously issued policy was issued before the effective date of this rule;(B) the previously issued policy has a face amount greater than or equal to the face amount of the new policy; and(C) the reentry provision guarantees the premium rates of the new policy.(2) Any individual life insurance policy issued in accordance with and pursuant to the exercise of a reentry provision contained in a new policy described in subdivision (1) or a derivation of such provision.(3) Any universal life policy that meets the following requirements: (A) Secondary guarantee period, if any, is five (5) years or less.(B) Specified premium for the secondary guarantee period is not less than the net level reserve premium for the secondary guarantee period based on the 1980 CSO valuation tables as defined in section 2(b) of this rule and the applicable valuation interest rate.(C) The initial surrender charge is not less than one hundred percent (100%) of the first year annualized specified premium for the secondary guarantee period.(4) 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.(5) 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.(6) 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 (1) year.(d) 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 4 of this rule.(e) 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 5 of this rule.Department of Insurance; 760 IAC 1-64-1; filed Dec 1, 1999, 3:20 p.m.: 23 IR 796; readopted filed Nov 7, 2005, 10:50 a.m.: 29 IR 896; readopted filed Nov 29, 2011, 9:14 a.m.: 20111228-IR-760110553RFAReadopted filed 11/6/2017, 1:06 p.m.: 20171206-IR-760170354RFAReadopted filed 11/13/2023, 10:12 a.m.: 20231213-IR-760230631RFA