New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 21 - LIMITED DEATH BENEFITS FORMS
Section 11:4-21.1 - Purpose; scope

Universal Citation: NJ Admin Code 11:4-21.1

Current through Register Vol. 56, No. 24, December 18, 2024

(a) The purpose of this subchapter is to establish guidelines for the filing and review of limited death benefit policy forms which will:

1. Make life insurance available to people who are otherwise uninsurable;

2. Assure that limited death policies are not sold by producers in preference to full death benefit policies and that the applicant understands that he or she may qualify for a full death benefit policy;

3. Reduce through disclosure the likelihood of misunderstanding arising where the sales presentation emphasizes the underwriting feature while minimizing or ignoring the limitation on death benefits at early durations; and

4. Set standards for the advertising of limited death benefit policy forms so as to eliminate unfair, misleading or deceptive advertising practices.

(b) This subchapter shall apply to all life insurance policy forms delivered or issued for delivery after the operative date hereof that limit death benefits during a period following the inception of the policy as an alternative to underwriting. This subchapter shall also apply to those single pay and limited pay life insurance policy forms where, at any issue age, the premium or premiums accumulated at the nonforfeiture interest rate used to determine nonforfeiture values under the policy exceed the guaranteed death benefit during the limited death benefit period defined at N.J.A.C. 11:4-21.3(g), regardless of whether the form is underwritten. The requirements in this subchapter apply to all previously filed forms as well as any forms submitted in the future. Previously filed forms which do not comply with these requirements are considered withdrawn as of August 20, 1996.

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