i) Policy Summary.
1) For the purposes of this Part, Policy
Summary means a written statement describing the elements of the policy
including but not limited to:
A) A
prominently placed title as follows: STATEMENT OF POLICY COST AND BENEFIT
INFORMATION.
B) The name and
address of the insurance agent, or, if no agent is involved, a statement of the
procedure to be followed in order to receive responses to inquiries regarding
the Policy Summary.
C) The full
name and home office or administrative office address of the company in which
the life insurance policy is to be or has been written.
D) The Generic Name of the basic policy and
each rider.
E) The following
amounts, where applicable, for the first five policy years and representative
policy years thereafter sufficient to clearly illustrate the premium and
benefit patterns, including, but not necessarily limited to, the years for
which Life Insurance Cost Indexes are displayed and at least one age from 60
through 65 or maturity, whichever is earlier:
i) The annual premium for the basic
policy.
ii) The annual premium for
each optional rider.
iii)
Guaranteed amount payable upon death, at the beginning of the policy year,
regardless of the cause of death other than suicide, or other specifically
enumerated exclusions, that is provided by the basic policy and each optional
rider, with benefits provided under the basic policy and each rider shown
separately.
iv) Total guaranteed
cash surrender values at the end of the year with, values shown separately for
the basic policy and each rider.
v)
Cash dividends payable at the end of the year, with values shown separately for
the basic policy and each rider. (Dividends need not be displayed beyond the
twentieth policy year.)
vi)
Guaranteed endowment amounts payable under the policy that are not included
under guaranteed cash surrender values (see subsection
(i)(1)(e)(iv)).
F) The
effective policy loan annual percentage interest rate, if the policy contains
this provision, specifying whether this rate is applied in advance or in
arrears. If the policy loan interest rate is variable, the Policy Summary
includes the maximum annual percentage rate.
G) Life Insurance Cost Indexes for ten and
twenty years, but in no case beyond the premium paying period. Separate indexes
are displayed for the basic policy and for each optional term life insurance
rider. Indexes need not be included for optional riders that are limited to
benefits such as accidental death benefits, disability waiver of premium,
preliminary term life insurance coverage of less than 12 months and guaranteed
insurability benefits, nor for the basic policies or optional riders covering
more than one life.
H) The
Equivalent Level Annual Dividend, in the case of participating policies and
participating optional term life insurance riders, under the same circumstances
and for the same durations at which Life Insurance Cost Indexes are
displayed.
I) A Policy Summary that
includes dividends shall also include a statement that dividends are based on
the company's current dividend scale and are not guaranteed. When using Exhibit
A, the Policy Summary must be accompanied by a statement in close proximity to
the Equivalent Level Annual Dividend as follows: An explanation of the intended
use of the Equivalent Level Annual Dividend is included in the Life Insurance
Buyer's Guide.
J) When using
Exhibit A, a statement in close proximity to the Life Insurance Cost Indexes as
follows: An explanation of the intended use of these indexes is provided in the
Life Insurance Buyer's Guide.
K)
The date on which the Policy Summary is prepared.
2) The Policy Summary must consist of a
separate document. All information required to be disclosed must be set out in
such a manner as to not minimize or render any portion thereof obscure. Any
amounts that remain level for two 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 subsection (i)(1)(E) shall be
listed in total, not on a per thousand nor per unit basis. If more than one
insured is covered under one policy or rider, guaranteed 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
zero and shall not be displayed as a blank space.