Section Ins 3506.01 - General Provisions(a) Policies with a secondary guarantee include:(1) A policy with a guarantee that the policy will remain in force at the original schedule of benefits, subject only to the payment of specified premiums;(2) A policy in which the minimum premium at any duration is less than the corresponding one year valuation premium, calculated using the maximum valuation interest rate and the 1980 CSO valuation tables with or without ten-year select mortality factors, or any other table adopted after the 2017 effective date of this rule by the NAIC and promulgated by rule by the commissioner for this purpose; or(3) A policy with any combination of subparagraphs (1) and (2) above.(b) A secondary guarantee period is the period for which the policy is guaranteed to remain in force subject only to a secondary guarantee. When a policy contains more than one secondary guarantee, the minimum reserve shall be the greatest of the respective minimum reserves at that valuation date of each unexpired secondary guarantee, ignoring all other secondary guarantees. Secondary guarantees that are unilaterally changed by the insurer after issue shall be considered to have been made at issue. Reserves described in Ins 3506.02 and Ins 3506.03 below shall be recalculated from issue to reflect these changes.(c) Specified premiums mean the premiums specified in the policy, the payment of which guarantees that the policy will remain in force at the original schedule of benefits, but which otherwise would be insufficient to keep the policy in force in the absence of the guarantee if maximum mortality and expense charges and minimum interest credits were made and any applicable surrender charges were assessed.(d) For purposes of this section, the minimum premium for any policy year is the premium that, when paid into a policy with a zero account value at the beginning of the policy year, produces a zero account value at the end of the policy year. The minimum premium calculation shall use the policy cost factors (including mortality charges, loads and expense charges) and the interest crediting rate, which are all guaranteed at issue.(e) The one-year valuation premium means the net one-year premium based upon the original schedule of benefits for a given policy year. The one-year valuation premiums for all policy years are calculated at issue. The select mortality factors defined in Ins 3504.02(a)(2), Ins 3504.02(a)(3), and Ins 3504.02(a)(4) may not be used to calculate the one-year valuation premiums.(f) The one-year valuation premium should reflect the frequency of fund processing, as well as the distribution of deaths assumption employed in the calculation of the monthly mortality charges to the fund.N.H. Admin. Code § Ins 3506.01
#7419, eff 7-1-01; ss by # 9516, eff 7-25-09
Amended by Volume XXXVII Number 28, Filed July 13, 2017, Proposed by #12228, Effective 7/25/2017, Expires 7/25/2027.