Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 31.00 - Life Insurance Solicitation
Section 31.05 - Duties of Insurers
Universal Citation: 211 MA Code of Regs 211.31
Current through Register 1531, September 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 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 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
211 CMR 31.04:
Policy Summary(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 the 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 211 CMR 31.05(1)(a).
(2) Requirements Applicable to Existing Policies.
(a) Upon
request by the policy owner, the insurer shall furnish either policy data or an
in force illustration as follows:
1. For
policies issued prior to the effective date of
211
CMR 28.00, Life Insurance Illustrations, the insurer
shall furnish policy data, or, at its option, an in force illustration meeting
the requirements of
211
CMR 28.00.
2. For policies issued after the effective
date of
211
CMR 28.00, 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
211
CMR 28.00.
3. If the policy was issued after the
effective date of
211
CMR 28.00, 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 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.
(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 Massachusetts 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
Massachusetts.
Disclaimer: These regulations may not be the most recent version. Massachusetts 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.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
