Terms Used In Rhode Island General Laws > Chapter 27-62 - Life Insurance Policy Illustration

• Actuarial standards board: means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. See Rhode Island General Laws 27-62-3
• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Contract: A legal written agreement that becomes binding when signed.
• 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. See Rhode Island General Laws 27-62-3
• 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 ninety-five (95) days. See Rhode Island General Laws 27-62-3
• 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. See Rhode Island General Laws 27-62-3
• Guaranteed elements: means the premiums, benefits, values, credits, or charges under a policy of life insurance that are guaranteed and determined at issue. See Rhode Island General Laws 27-62-3
• 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:

  (i)  The disciplined current scale; or

  (ii)  The currently payable scale. See Rhode Island General Laws 27-62-3

• 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 three (3) types defined in subsections (8)(i) — (8)(iii):

  (i)  "Basic illustration" means a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and non-guaranteed elements. See Rhode Island General Laws 27-62-3

• Illustration actuary: means an actuary meeting the requirements of §?27-62-10 who certifies to illustrations based on the standard of practice promulgated by the Actuarial Standards Board. See Rhode Island General Laws 27-62-3
• In force illustration: means an illustration furnished at any time after the policy that it depicts has been in force for one year or more. See Rhode Island General Laws 27-62-3
• in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• Minimum assumed expenses: means the minimum expenses that may be used in the calculation of the disciplined current scale for a policy form. See Rhode Island General Laws 27-62-3
• 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. See Rhode Island General Laws 27-62-3
• 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 where:

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

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

  (iii)  Group underwriting or simplified underwriting is used. See Rhode Island General Laws 27-62-3

• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Outlays: Outlays are payments made (generally through the issuance of checks or disbursement of cash) to liquidate obligations. Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year.
• person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
• Policy owner: means the owner named in the policy or the certificate holder in the case of a group policy. See Rhode Island General Laws 27-62-3
• Premium outlay: means the amount of premium assumed to be paid by the policy owner or other premium payer out-of-pocket. See Rhode Island General Laws 27-62-3
• Supplemental illustration: means an illustration furnished in addition to a basic illustration that meets the applicable requirements of this chapter, and that may be presented in a format differing from the basic illustration, but may only depict a scale of non-guaranteed elements that is permitted in a basic illustration. See Rhode Island General Laws 27-62-3