20:06:21:01.05.  Treatment of accelerated benefits in life insurance. Accelerated benefits payable under a life insurance contract:

          (1)  To a policyowner or certificateholder, during the lifetime of the insured, in anticipation of death or upon the occurrence of specified life-threatening or catastrophic conditions as defined by the policy or rider; and

          (2)  That reduce the death benefit otherwise payable under the life insurance contract; and

          (3)  That are payable upon the occurrence of a single qualifying event that results in the payment of a benefit amount determined at the time of acceleration

are not considered to be charging a separate premium pursuant to § 20:06:21:01.03.

          Source: 32 SDR 203, effective June 5, 2006.

          General Authority: SDCL 58-17B-4.

          Law Implemented: SDCL 58-17B-2.