<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>p.s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s195cd01f-5dcc-4725-a8ef-1d935b81f965000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000002 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal-000003 { text-align: justify; font-family: Times; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } </style></head><body><div><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000000">20:06:21:05.01.  Relation of benefits to premium for accelerated death benefit on life insurance.</span><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont"> A life insurance policy that funds long-term care benefits entirely by accelerating the death benefit is considered to provide reasonable benefits in relation to premiums paid, if the policy complies with all of the following provisions:</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    (1)  The interest credited internally to determine cash value accumulations, including long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest rate for cash value accumulations without long-term care set forth in the policy;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    (2)  The portion of the policy that provides life insurance benefits meets the nonforfeiture requirements of SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-15-31"><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000002">58-15-31</span></a><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    (3)  The policy meets the disclosure requirements of §§ </span><a href="https://sdlegislature.gov/Rules?Rule=20:06:21:44.01"><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000002">20:06:21:44.01</span></a><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">, </span><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">20:06:21:47, and </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">20:06:21:48;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    (4)  Any policy illustration that meets the applicable requirements of chapter </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">20:06:38; and</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    (5)  An actuarial memorandum is filed with the Division of Insurance that includes:</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (a)  A description of the basis on which the long-term care rates were determined;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (b)  A description of the basis for the reserves;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (c)  A summary of the type of policy, benefits, renewability, general marketing method, and limits on ages of issuance;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (d)  A description and a table of each actuarial assumption used. For expenses, an insurer must include percent of premium dollars per policy and dollars per unit of benefits, if any;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (e)  A description and a table of the anticipated policy reserves and additional reserves to be held in each future year for active lives;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (f)  The estimated average annual premium per policy and the average issue age;</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (g)  A statement as to whether underwriting is performed at the time of application. If underwriting is used the statement shall include a description of the type or types of underwriting used, such as medical underwriting or functional assessment underwriting. Concerning a group policy, the statement shall indicate whether the enrollee or any dependent will be underwritten and when underwriting occurs; and</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">        (h)  A description of the effect of the long-term policy provision on the required premiums, nonforfeiture values and reserves on the underlying life insurance policy, both for active lives and those in long-term care claim status.</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000000">Source:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont"> 28 SDR 157, effective </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">May 19, 2002.</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000000">General Authority:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-8"><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000002">58-17B-8</span></a><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">.</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal-000003"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">    </span><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000000">Law Implemented:</span><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=58-17B-8"><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont-000002">58-17B-8</span></a><span style="white-space: pre-wrap;" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965DefaultParagraphFont">.</span></p><p dir="ltr" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965Normal"><span style="white-space: pre-wrap;" xml:space="preserve" class="s195cd01f-5dcc-4725-a8ef-1d935b81f965000001"> </span></p></div></body></html>