Terms Used In California Codes > Insurance Code > Division 2 > Part 2 > Chapter 5.5 - Life Insurance Policy Illustrations

• Actuarial Standards Board: means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice. See California Insurance Code 10509.953
• Amount secured by the lien: includes interest and any costs and charges secured by the lien. See California Probate Code 10360
• Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
• Basic illustration: means a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements. See California Insurance Code 10509.953
• Claim: means a demand for payment for any of the following, whether due, not due, accrued or not accrued, or contingent, and whether liquidated or unliquidated:

  California Probate Code 9000

• Clerk of court: An officer appointed by the court to work with the chief judge in overseeing the court's administration, especially to assist in managing the flow of cases through the court and to maintain court records.
• Commissioner: means the Insurance Commissioner of this State. See California Insurance Code 20
• Contract: A legal written agreement that becomes binding when signed.
• Contract premium: means 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. See California Insurance Code 10509.953
• court supervision: means the judicial order, authorization, approval, confirmation, or instructions that would be required if authority to administer the estate had not been granted under this part. See California Probate Code 10401
• Creditor: means a person who may have a claim against estate property. See California Probate Code 9000
• Currently payable scale: means a scale of nonguaranteed 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. See California Insurance Code 10509.953
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Decedent: A deceased person.
• Devisee: means any person designated in a will to receive a devise. See California Probate Code 34
• Disciplined current scale: means a scale of nonguaranteed 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. See California Insurance Code 10509.953
• Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
• Encumbered property: means real or personal property that is subject to a lien for a secured debt which is a valid claim against the estate and which has been allowed or approved. See California Probate Code 10360
• Escheat: Reversion of real or personal property to the state when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. ^{Source: OCC}
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Fraud: Intentional deception resulting in injury to another.
• full authority: means authority to administer the estate under this part that includes all the powers granted under this part. See California Probate Code 10402
• Guaranteed elements: means the premiums, benefits, values, credits or charges under a policy of life insurance that are guaranteed and determined at issue. See California Insurance Code 10509.953
• Heir: means any person, including the surviving spouse, who is entitled to take property of the decedent by intestate succession under this code. See California Probate Code 44
• Illustrated scale: means a scale of nonguaranteed elements currently being illustrated that is not more favorable to the policy owner than the lesser of either of the following:

  California Insurance Code 10509.953

• Illustration: means a presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years and that is one of the three types defined below:

  California Insurance Code 10509.953

• Illustration actuary: means an actuary meeting the requirements of Section 10509. See California Insurance Code 10509.953
• In force illustration: means an illustration furnished at any time after the policy that it depicts has been in force for one year or more. See California Insurance Code 10509.953
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• interested person: includes any of the following:

  California Probate Code 48

• Lien: A claim against real or personal property in satisfaction of a debt.
• Lien: means a mortgage, deed of trust, or other lien. See California Probate Code 10360
• Life insurance: means insurance upon the lives of persons or appertaining thereto. See California Insurance Code 10509.953
• limited authority: means authority to administer the estate under this part that includes all the powers granted under this part except the power to do any of the following:

  California Probate Code 10403

• Minimum assumed expenses: means the minimum expenses that may be used in the calculation of the disciplined current scale for a policy form. See California Insurance Code 10509.953
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Outlays: Outlays are payments made (generally through the issuance of checks or disbursement of cash) to liquidate obligations. Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year.
• Person: means an individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership, limited liability company, association, or other entity. See California Probate Code 56
• Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Insurance Code 19
• Personal property: All property that is not real property.
• Personal representative: means executor, administrator, administrator with the will annexed, special administrator, successor personal representative, public administrator acting pursuant to Section 7660, or a person who performs substantially the same function under the law of another jurisdiction governing the person's status. See California Probate Code 58
• Policy owner: means the owner named in the policy or the certificate holder in the case of a group policy. See California Insurance Code 10509.953
• Premium outlay: means the amount of premium assumed to be paid by the policy owner or other premium payer out-of-pocket. See California Insurance Code 10509.953
• Property: means anything that may be the subject of ownership and includes both real and personal property and any interest therein. See California Probate Code 62
• Real property: includes a leasehold interest in real property. See California Probate Code 68
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• State: includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States. See California Probate Code 74
• State: means the State of California, unless applied to the different parts of the United States. See California Insurance Code 28
• Supplemental illustration: means 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 nonguaranteed elements that is permitted in a basic illustration. See California Insurance Code 10509.953
• Will: includes codicil and any testamentary instrument which merely appoints an executor or revokes or revises another will. See California Probate Code 88