Or. Admin. Code § 836-012-0210

Current through Register Vol. 63, No. 12, December 1, 2024

Section 836-012-0210 - Definitions

As used in OAR 836-012-0200 to 836-012-0270:

(1) "Actuarial Method" means the methodology used to determine the Required Level of Primary Security, as described in OAR 836-012-0250.

(2) "Covered Policies" means the following policies (unless such policies were issued prior to January 1, 2015, and ceded as of December 31, 2014, as part of a reinsurance treaty that would not have met one of the exemptions set forth in OAR 836-012-0240 had that section then been in effect):

(a) Life insurance policies with guaranteed nonlevel gross premiums and/or guaranteed nonlevel benefits (other than flexible premium universal life insurance policies); and

(b) Flexible premium universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period.

(3) "Non-Covered Policies" means any policy that is not a Covered Policy.

(4) "Required Level of Primary Security" means the dollar amount determined by applying the Actuarial Method to the risks ceded with respect to Covered Policies, but not more than the total reserve ceded.

(5) "Primary Security" means the following forms of security:

(a) Cash;

(b) Securities meeting the requirements of OAR 836-012-0060 (1)(b), but excluding any synthetic letter of credit, contingent note, credit-linked note or other similar security that operates in a manner similar to a letter of credit, and excluding any securities issued by the ceding insurer or any of its affiliates; and

(c) For security held in connection with funds-withheld and modified coinsurance reinsurance treaties:

(A) Commercial loans in good standing of CM3 quality and higher;

(B) Policy Loans; and

(C) Derivatives acquired in the normal course and used to support and hedge liabilities pertaining to the actual risks in the policies ceded pursuant to the reinsurance treaty.

(6) "Other Security" means any security acceptable to the director other than security meeting the definition of Primary Security.

(7) "Valuation Manual" means the valuation manual described in OAR 836-031-0605.

(8) "Director" means the director of the Department of Consumer and Business Services.

(9) "NAIC" means the National Association of Insurance Commissioners.

(10) "This rule" means OAR 836-012-0200 to 836-012-0270.

Or. Admin. Code § 836-012-0210

ID 10-2022, adopt filed 12/27/2022, effective 1/1/2023

Statutory/Other Authority: ORS 731.244, ORS 731.508 - 731.511 & 731.514

Statutes/Other Implemented: ORS 731.508 - 731.511 & 731.514