New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 21 - LIMITED DEATH BENEFITS FORMS
Section 11:4-21.3 - General requirements
Current through Register Vol. 56, No. 18, September 16, 2024
(a) No limited death benefit policy shall be issued in this State unless the insurer has, at the time of application, obtained from the applicant a signed and dated statement attesting that the applicant understands that he or she may qualify for a full death benefit policy which provides full benefits from inception. A copy of this statement must be submitted to the Department for review prior to its use.
(b) All advertising for a limited death benefit policy shall prominently explain the nature of the limited death benefit policy and state the duration of the limited death benefit period.
(c) Any advertising of a limited death benefit policy which makes reference to a specific premium rate must provide:
(d) When sold by producers, the commission may not be greater on the sale of limited death benefit policies than on the sale of full death benefit policies.
(e) The limited death benefit shall not be less than the amount of premiums paid with interest at the rate used to determine nonforfeiture values under the policy.
(f) The period during which a limited death benefit applies shall not exceed 25 percent of life expectancy at the issue age, as determined by the mortality table used for nonforfeiture values under the policy, or two years, whichever is shorter.
(g) The policy shall include a provision allowing for the return of the policy for a full refund of premiums within 30 days after delivery.