New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 4 - ACTUARIAL SERVICES
Subchapter 25 - FUNERAL INSURANCE POLICIES
Section 11:4-25.5 - Loss ratio standard

1. The guaranteed death benefit shall not be less than the death benefit required by the limited death benefits forms rule at N.J.A.C. 11:4-21;

2. During the first seven policy years, the guaranteed death benefit shall not be less than the insurance adjusted premium fund;

3. The guaranteed death benefit in any policy year after the limited death benefit period defined at N.J.A.C. 11:4-21 shall not be less than the death benefit required at the end of that period by (b)1 above, and the death benefit for any policy year after the first seven policy years shall not be less than the death benefit required at the end of the seventh policy year by (b)2 above;

4. The minimum nonforfeiture benefits shall be those specified by the standard nonforfeiture law for life insurance at 17B:25-19, except that if the provision of the guaranteed death benefits required by (b)1, 2 and 3 above would cause a policy to be disqualified as life insurance for purposes of federal income tax treatment, a smaller nonforfeiture benefit, consisting of the maximum benefit possible while still maintaining qualification, may be provided. The actuarial memorandum certifying compliance with 17B:25-19 shall demonstrate that lower values are required and that the values provided are the maximum possible; and

5. A funeral insurance policy not meeting the standards of (b)1 to 4 above shall be considered an annuity contract and shall be so designated. It will be subject to the standards of (c) below.