Current through Register Vol. 46, No. 39, September 25, 2024
(a) The preliminary
information shall be in writing and include, to the extent applicable, the
following:
(1) the name and address of the
insurance agent, or broker, or if no agent or broker is involved, a statement
of the procedure to be followed to receive responses to inquiries concerning
the preliminary information;
(2)
the full name and home office, administrative office or branch or agency office
address of the insurer in whose name the life insurance policy is to be
written;
(3) the date of the
preliminary information and the generic name of the policy, the initial amount
of insurance and the initial annual premium for the base policy and each rider,
if applicable;
(4) a table of
values and benefits based upon current, median and guaranteed policy cost
factors for the base policy and any rider at the end of each of the first five
policy years, the 10th policy year and at the end of the policy years in which
the proposed insured attains age 65, 75, 85 and 95. These values may be shown
on a per thousand or per unit basis;
(5) the year coverage will terminate based
upon current, median and guaranteed policy cost factors. These values may be
shown on a per thousand or per unit basis;
(6) the interest rate basis for each table of
values based upon current, median and guaranteed policy cost factors;
(7) the effective policy loan annual
percentage interest rate and whether this rate is applied in advance or in
arrears, adjustable or fixed;
(8)
acknowledgment that the potential purchaser understands that policy values,
cash surrender values and death benefits based on current and median policy
cost factors are not guaranteed and that any changes in the company's interest
earnings, expenses or claim experience may result in lower or higher premium
payments or lower or higher policy benefits;
(9) a statement advising the applicant that
when the policy is issued, a complete policy summary including cost data, based
on the benefits, premiums and dividends of the policy as issued will be
furnished, and that, following the receipt of the policy and policy summary,
there will be a period of not less than 10 days within which the applicant may
return the policy for an unconditional refund of the premium paid or the
adjusted amount if such policy provides for a market-value adjustment pursuant
to section
3203
(a)(11) of the Insurance Law; and
(10) life insurance cost indexes and the
equivalent level annual dividend for the basic policy for 10 and 20 years, but
in no case beyond the premium-paying period.
(b) The table of values and benefits based on
guaranteed policy cost factors shall be labeled in a prominent manner
"guaranteed" and the table of values and benefits based on current and median
policy cost factors shall be labeled in a prominent manner "not
guaranteed."
(c) The preliminary
information shall be provided to the prospective purchaser at or prior to the
time an application is taken and shall be signed and dated by the agent or
broker and the applicant and a copy of the preliminary information shall be
attached to the application submitted to the insurer. Notwithstanding the
foregoing, no applicant for life insurance shall be prevented or delayed in
effecting or applying for coverage by the requirements of this Subpart. In such
cases where prior to application it is impractical to provide any items
prescribed by this Subpart, such items may be estimated in good faith or
furnished as soon thereafter as practical prior to the delivery of
policy.
