20:06:38:34Expenses.

Each year, the insurer shall choose the method used to allocate overhead expenses for all illustrations and the method of determining assumed expenses for all policy forms from the following: (1) Fully allocated expenses; (2) Marginal expenses; (3) The generally recognized expense table in Appendix A at the end of this chapter; or (4) Another generally recognized expense table based on fully allocated expenses representing a significant portion of insurance companies and approved by the director pursuant to § 20:06:38:35. For the purpose of determining assumed expenses, marginal expenses may be used only if greater than a generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses must be used.

Source: 23 SDR 228, effective July 1, 1997.