§ 3791a. Definitions
As used in this subchapter:
(1) “Accident and health insurance” means contracts that incorporate morbidity risk and
provide protection against economic loss resulting from accident, sickness, or medical
conditions and as may be specified in the Valuation Manual.
(2) “Appointed actuary” means a qualified actuary who is appointed in accordance with
the Valuation Manual to prepare the actuarial opinion required in subsection 3791c(b)
of this subchapter.
(3) “Company” means an entity that:
(A) has written, issued, or reinsured life insurance contracts, accident and health insurance
contracts, or deposit-type contracts in this State and has at least one such policy
in force or on claim; or
(B) has written, issued, or reinsured life insurance contracts, accident and health insurance
contracts, or deposit-type contracts in any state and is required to hold a certificate
of authority to write life insurance, accident and health insurance, or deposit-type
contracts in this State.
(4) “Deposit-type contract” means contracts that do not incorporate mortality or morbidity
risks and as may be specified in the Valuation Manual.
(5) “Life insurance” means contracts that incorporate mortality risk, including annuity
and pure endowment contracts, and as may be specified in the Valuation Manual.
(6) “NAIC” means the National Association of Insurance Commissioners.
(7) “Policyholder behavior” means any action a policyholder, contract holder, or any other
person with the right to elect options, such as a certificate holder, may take under
a policy or contract subject to this subchapter, including lapse, withdrawal, transfer,
deposit, premium payment, loan, annuitization, or benefit elections prescribed by
the policy or contract but excluding events of mortality or morbidity that result
in benefits prescribed in their essential aspects by the terms of the policy or contract.
(8) “Principle-based valuation” means a reserve valuation that uses one or more methods
or one or more assumptions determined by the insurer and is required to comply with
section 3791o of this subchapter as specified in the Valuation Manual.
(9) “Qualified actuary” means an individual who is qualified to sign the applicable statement
of actuarial opinion in accordance with the American Academy of Actuaries qualification
standards for actuaries signing such statements and who meets the requirements specified
in the Valuation Manual.
(10) “Tail risk” means a risk that occurs either where the frequency of low probability
events is higher than expected under a normal probability distribution or where there
are observed events of very significant size or magnitude.
(11) “Valuation Manual” means the manual of valuation instructions adopted by the NAIC
as specified in this subchapter or as subsequently amended. (Added 2015, No. 63, § 1, eff. June 17, 2015.)