La. Admin. Code tit. 37 § XIII-3305
Actuarial Standards Board- the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.
Contract Premium- 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.
Currently Payable Scale- 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.
Department- the Louisiana Department of Insurance.
Disciplined Current Scale- 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 this 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.
a.Guaranteed Elements- the premiums, benefits, values, credits, or charges under a policy of life insurance that are guaranteed and determined at issue.
b.Non-Guaranteed Elements- the premiums, benefits, values, credits, or charges under a policy of life insurance that are not guaranteed or not determined at issue.
a. the disciplined current scale; or
b. the currently payable scale.
a.Basic Illustration- a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and non-guaranteed elements.
b.In Force Illustration- an illustration furnished at any time after the policy that it depicts has been in force for one year or more.
c.Supplemental Illustration- an illustration furnished in addition to a basic illustration that meets the applicable requirements of this regulation, 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.
a. the minimum expenses that may be used in the calculation of the disciplined current scale for a policy form. The insurer may choose to designate each year the method of determining assumed expenses for all policy forms from the following:
i. fully allocated expenses;
ii. marginal expenses; and
iii. a generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the department.
b. Marginal expenses may be used only if greater than a generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses must be used.
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.
Policy Owner- the owner named in the policy or the certificate holder in the case of a group policy.
Premium Outlay- the amount of premium assumed to be paid by the policy owner or other premium payer out-of-pocket.
Self-Supporting Illustration- 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 15 policy anniversary or the 20 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 will include cash surrender values and any other illustrated benefit amounts available at the policy owner's election.
La. Admin. Code tit. 37, § XIII-3305