Louisiana Administrative Code
Title 37 - INSURANCE Part
Part XIII - Regulations
Chapter 85 - Regulation 36-Universal Life Insurance Model Regulation
Section XIII-8513 - Disclosure Requirements
Universal Citation: LA Admin Code XIII-8513
Current through Register Vol. 50, No. 9, September 20, 2024
A. In connection with any advertising, solicitation, negotiation, or procurement of a universal life insurance policy:
1. any
statement of policy cost factors or benefits shall contain:
a. the corresponding guaranteed policy cost
factors or benefits, clearly identified;
b. a statement explaining the nonguaranteed
nature of any current interest rates, charges, or other fees applied to the
policy, including the insurer's rights to alter any of these factors;
c. any limitations on the crediting of
interest, including identification of those portions of the policy to which a
specified interest rate shall be credited.
2. Any illustration of the policy value shall
be accompanied by the corresponding net cash surrender value.
3. Any statement regarding the crediting of a
specific current interest rate shall also contain the frequency and timing by
which such rate is determined.
4.
If any statement refers to the policy being interest-indexed, the index shall
be described. In addition, a description shall be given of the frequency and
timing of determining the interest rate and of any adjustments made to the
index in arriving at the interest rate credited under the policy.
5. Any illustrated benefits based upon
nonguaranteed interest, mortality, or expense factors shall be accompanied by a
statement indicating that these benefits are not guaranteed.
6. If the guaranteed cost factors or initial
policy cost factor assumptions would result in policy values becoming exhausted
prior to the policy's maturity date, such fact shall be disclosed, including
notice that coverage will terminate under such circumstances.
AUTHORITY NOTE: Promulgated in accordance with Title 22, Section 2 and Title 36, Section 682 of the Insurance Laws of the State of Louisiana.
Disclaimer: These regulations may not be the most recent version. Louisiana 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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