As used in this article, the following words and phrases shall have the meanings given to them in this section:

“Actuarial standards board.” The board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.

“Agent.” A licensed representative of an insurer as defined in section 601 of the act of May 17, 1921 (P.L. 789, No. 285),¹ known as “The Insurance Department Act of 1921.”

“Basic illustration.” A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.

“Broker.” A licensed representative of an insurance applicant or insured as defined in section 621 of the act of May 17, 1921 (P.L. 789, No. 285),² known as “The Insurance Department Act of 1921.”

“Commissioner.” The Insurance Commissioner of the Commonwealth.

“Contract premium.” 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.

“Currently payable scale.” A scale of nonguaranteed elements in effect for a policy form as of the preparation date of the illustration or which has a future effective date not later than ninety-five (95) days from the date the illustration is shown.

“Department.” The Insurance Department of the Commonwealth.

“Disciplined current scale.” 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. Further guidance in determining the disciplined current scale as contained in standards established by the Actuarial Standards Board may be relied upon if the standards:

The term does not include group life insurance or group annuities, life insurance issued under the act of September 2, 1961 (P.L. 1232, No. 540),⁴ known as the “Model Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance,” life insurance issued in connection with a pension, profit-sharing or other benefit plan qualifying for deductibility of premiums, transactions involving an application to the existing insurer that issued the existing life insurance or annuity in which a contractual change or a conversion privilege is being exercised.

“Self-supporting illustration.” An illustration of a policy form for which it can be demonstrated that, when using experience assumptions underlying the disciplined current scale, for all illustrated points in time on or after the fifteenth policy anniversary or the twentieth policy anniversary for second or later-to-die policies, or upon policy expiration if sooner, the accumulated value of all policy cash flows equals or exceeds the total policy owner value available. For this purpose, policy owner value will include cash surrender values and any other illustrated benefit amounts available at the policy owner's election.

“Supplemental illustration.” An illustration furnished in addition to a basic illustration that meets the applicable requirements of this act 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.