Section R590-198-2 - Purpose and Scope(1) The purpose of this rule is to provide:(a) tables of select mortality factors;(b) rules for use of select mortality factors;(c) minimum standards for the valuation of plans with nonlevel premiums or benefits; and(d) minimum standards for the valuation of plans with secondary guarantees.(2) The method for calculating basic reserves defined in this rule constitutes the Commissioners' Reserve Valuation Method for policies to which this rule applies.(3) This rule applies to a life insurance policy, with or without nonforfeiture values, issued on or after January 4, 2000, subject to the following exceptions and conditions.(4) This rule does not apply to : (a) an individual life insurance policy issued on or after January 4, 2000, if the policy is issued in accordance with and as a result of the exercise of a reentry provision contained in the original life insurance policy of the same or greater face amount, issued before January 4, 2000, that guarantees the premium rates of the new policy ;(b) a subsequent policy issued as a result of the exercise of a provision described in Subsection (4)(a), or a derivation of the provision, in the new policy;(c) a universal life policy that meets the following requirements:(i) any secondary guarantee period is five years or less;(ii) a 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 Subsection R590-198-3(1) and the applicable valuation interest rate; and(iii) the initial surrender charge is not less than 100% of the first year annualized specified premium for the secondary guarantee period;(c) a 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; and(d) a group life insurance certificate unless the certificate provides for a stated or implied schedule of maximum gross premiums required to continue coverage in force for a period in excess of one year.(5) Conditions. (a) Calculation of the minimum valuation standard for a policy with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits, other than universal life policies, or both, shall be in accordance with Section R590-198-5.(b) 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 Section R590-198-6.Utah Admin. Code R590-198-2
Amended by Utah State Bulletin Number 2022-24, effective 12/8/2022