Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-131 - LIFE INSURANCE DISCLOSURE REGULATION
Section 482-1-131-.05 - Duties Of Insurers
Universal Citation: AL Admin Code R 482-1-131-.05
Current through Register Vol. 43, No. 02, November 27, 2024
(1) Requirements Applicable Generally
(a) The
insurer shall provide a Buyer's Guide to all prospective purchasers, prior to
accepting the applicant's initial premium or premium deposit. However, if the
policy for which application is made contains an unconditional refund provision
of at least ten (10) days, the Buyer's Guide may be delivered with the policy
or prior to delivery of the policy.
(b) The insurer shall provide a policy
summary to prospective purchasers where the insurer has identified the policy
form as one that will not be marketed with an illustration. The policy summary
shall show guarantees only. It shall consist of a separate document with all
required information set out in a manner that does not minimize or render any
portion of the summary obscure. Any amounts that remain level for two (2) or
more years of the policy may be represented by a single number if it is clearly
indicated what amounts are applicable for each policy year. Amounts in Rule
482-1-131-.04(e)
shall be listed in total, not on a per thousand or per unit basis. If more than
one insured is covered under one policy or rider, death benefits shall be
displayed separately for each insured or for each class of insureds if death
benefits do not differ within the class. Zero amounts shall be displayed as a
blank space. Delivery of the policy summary shall be consistent with the time
for delivery of the Buyer's Guide as specified in Rule
482-1-131-.05(1)(a).
(2) Requirements Applicable to Existing Policies.
(a) Upon request by the
policyowner, the insurer shall furnish either policy data or an in force
illustration as follows:
1. or policies issued
prior to the effective date of January 1, 1998, the insurer shall furnish
policy data, or, at its option, an in force illustration meeting the
requirements of Chapter 482-1-114.
2. For policies issued after the effective
date of the illustration regulation that were declared not to be used with an
illustration, the insurer shall furnish policy data, limited to guaranteed
values, if it has chosen not to furnish an in force illustration meeting the
requirements of the chapter.
3. If
the policy was issued after the effective date of the illustration chapter and
declared to be used with an illustration, an in force illustration shall be
provided.
4. Unless otherwise
requested, the policy data shall be provided for twenty (20) consecutive years
beginning with the previous policy anniversary. The statement of policy data
shall include nonguaranteed elements according to the current scale, the amount
of outstanding policy loans, and the current policy loan interest rate. Policy
values shown shall be based on the current application of nonguaranteed
elements in effect at the time of the request. The insurer may charge a
reasonable fee, not to exceed $5.00, for the preparation of the
statement.
(b) If a life
insurance company changes its method of determining scales of nonguaranteed
elements on existing policies; it shall, no later than when the first payment
is made on the new basis, advise each affected policy owner residing in this
state of this change and of its implication on affected policies. This
requirement shall not apply to policies for which the amount payable upon death
under the basic policy as of the date when advice would otherwise be required
does not exceed $5,000.
(c) If the
insurer makes a material revision in the terms and conditions under which it
will limit its right to change any nonguaranteed factor; it shall, no later
than the first policy anniversary following the revision, advise each affected
policy owner residing in this state.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §§ 27-2-17, 27-12-1, et seq.
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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