Current through Register Vol. 46, No. 39, September 25, 2024
(a) A policy
summary shall include the following:
(1) a
prominently placed title as follows: "STATEMENT OF POLICY COST AND BENEFIT
INFORMATION;"
(2) 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 in order to receive
responses to inquiries regarding the policy summary;
(3) 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 or has been written;
(4) the generic name of the basic policy and
each rider;
(5) tables for the
first five policy years and every fifth year thereafter until the maturity date
containing the following:
(i) the annual
premium or annual planned premium for the basic policy;
(ii) the annual premium or annual planned
premium or maximum cost of insurance rate for each rider;
(iii) the death benefit at the beginning of
the policy year shown separately for the basic policy and each rider;
(iv) the policy value and cash surrender
value at the end of each year with values shown separately for the basic policy
and each rider;
(v) the death
benefits, policy values and cash surrender values based on the annual premium
or annual planned premium using the current, median and guaranteed policy cost
factors;
(vi) the interest rate
assumptions for each projection of policy values and death benefits based upon
current, median and guaranteed policy cost factors;
(vii) the dates the policy will terminate
based on the annual premium or annual planned premium and on the current,
median and guaranteed policy cost factors; and
(viii) the level annual premium from the
issue date that would, based upon guaranteed policy cost factors, continue the
policy to the maturity date;
(6) the effective policy loan annual
percentage interest rate specifying whether this rate is applied in advance or
arrears, adjustable or fixed, and if adjustable, the frequency at which such
rate is to be determined and the index upon which the maximum rate is based at
the time the policy is issued;
(7)
the date on which the policy summary is prepared;
(8) life insurance cost indexes for 10 and 20
years but in no case beyond the premium- paying period. Separate indexes are to
be displayed for the basic policy and each optional term life insurance rider.
Such indexes need not be included for optional riders which are limited to
benefits such as accidental death benefits, disability waiver of premium,
preliminary term life insurance coverage of less than 12 months and guaranteed
insurability benefits, nor for basic policies or optional riders covering more
than one life;
(9) the equivalent
level annual dividend, in the case of participating policies and participating
optional term life insurance riders, under the same circumstances and for the
same durations at which life insurance cost indexes are displayed;
(10) a policy summary which includes
dividends shall also include a statement that dividends are based on the
company's current dividend scale and are not guaranteed; in addition, the
summary shall include a statement in close proximity to the equivalent level
annual dividend as follows: "An explanation of the intended use of the
equivalent level annual dividend is included in the buyer's guide;"
and
(11) a statement in close
proximity to the life insurance cost indexes as follows: "AN EXPLANATION OF THE
INTENDED USE OF THESE INDEXES IS PROVIDED IN THE BUYER'S GUIDE."
(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 annual
planned premium used for each table shall be the actual planned premium
selected by the applicant in the application without regard to any future
unscheduled premium payments but may take into account any additional premium,
in excess of the planned premium, paid with the application if identified
separately in the application.
(d)
The policy summary for life insurance policies which use a market-value
adjustment formula in determining cash surrender benefits shall include the
information required by section
43.5 of this Title with an
appropriate statement that the cash surrender value does not reflect any
adjustment based on such formula.
(e) The policy summary shall be a separate
document.
(f) If more than one
insured is covered under the policy, other than a joint life policy, or any
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.
