New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 11 - LIFE INSURANCE DISCLOSURE
Section 11:4-11.3 - Duties of insurers
Universal Citation: NJ Admin Code 11:4-11.3
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The generally applicable requirements are as follows:
1. 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 10 days, the
Buyer's Guide may be delivered with the policy or prior to delivery of the
policy; and
2. 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 referenced in paragraph 5 of the definition of "policy
summary" in
11:4-11.2 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 (a)1 above.
(b) The requirements applicable to existing policies are as follows:
1. Upon request by
the policyowner, the insurer shall furnish either policy data or an in force
illustration as follows:
i. For policies
issued prior to July 6, 1998 (the effective date of N.J.A.C. 11:4-52, Life
Insurance Illustrations), the insurer shall furnish policy data, or, at its
option, an in force illustration meeting the requirements of N.J.A.C.
11:4-52;
ii. For policies issued
after July 6, 1998 (the effective date of N.J.A.C. 11:4-52, Life Insurance
Illustrations), 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
N.J.A.C. 11:4-52;
iii. If the
policy was issued after the effective date of N.J.A.C. 11:4-52 and declared to
be used with an illustration, an in force illustration shall be provided;
or
iv. 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
non-guaranteed 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 non-guaranteed
elements in effect at the time of the request. The insurer may charge a
reasonable fee, not to exceed $ 10.00, for the preparation of the
statement;
2. If a life
insurer changes its method of determining scales of non-guaranteed elements on
existing policies, it shall, no later than when the first payment is made on
the new basis, provide notice to each affected policy owner residing in this
State of this change and of its implication on affected policies. This notice
requirement shall not apply to policies where, as of the date the notice would
be required, the amount payable upon death under the basic policy does not
exceed $ 5,000; and
3. If the
insurer makes a material revision in the terms and conditions under which it
will limit its right to change any non-guaranteed factor, it shall, no later
than the first policy anniversary following the revision, advise each affected
policy owner residing in this State.
Disclaimer: These regulations may not be the most recent version. New Jersey 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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