Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-113 - ACCELERATED BENEFIT PROVISIONS OF INDIVIDUAL AND GROUP LIFE INSURANCE POLICIES
Section 482-1-113-.06 - Criteria For Payment
Current through Register Vol. 42, No. 11, August 30, 2024
(1) Lump Sum Settlement Option Required. Contract payment options shall include the option to take the benefit as a lump sum. The benefit shall not be made available as an annuity contingent upon the life of the insured.
(2) Restrictions on Use of Proceeds. No restrictions are permitted on the use of the proceeds.
(3) Accidental Death Benefit Provision. If any death benefit remains after payment of an accelerated benefit, the accidental death benefit provision, if any, in the policy or rider shall not be affected by the payment of the accelerated benefit.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, § 27-2-17.
