North Carolina Administrative Code
Title 11 - INSURANCE
Chapter 12 - LIFE AND HEALTH DIVISION
Section .1200 - ACCELERATED BENEFITS
Section 12 .1202 - DEFINITIONS
Universal Citation: 11 NC Admin Code 12 .1202
Current through Register Vol. 38, No. 18, March 15, 2024
(a) "Accelerated benefits" covered under this Section are benefits are payable under a life insurance or annuity contract:
(1) To a policyowner or certificateholder, during the lifetime of the
insured, in anticipation of death or upon the occurrence of specified life-threatening or catastrophic
conditions as defined by the policy or rider; and
(2) That reduce
the death benefit otherwise payable under the life insurance or annuity contract; and
(3) That are payable upon the occurrence of a single qualifying event that
results in the payment of a benefit amount fixed at the time of acceleration.
(b) "Qualifying event" means one or more of the following:
(1) A medical condition that a duly licensed health care provider predicts
would result in a drastically limited life span as specified in the contract; or
(2) A medical condition that has required or requires extraordinary medical
intervention, including a major organ transplant or continuous artificial life support, without which the
insured would die; or
(3) Any condition that usually requires
continuous confinement in an eligible institution as defined in the contract if the insured is expected to
remain there for the rest of his or her life; or
(4) A medical
condition that medical evidence indicates would, in the absence of extensive or extraordinary medical
treatment, result in a drastically limited life span. Such condition may include one or more of the
following:
(A) Coronary artery disease resulting in an acute infarction or
requiring surgery;
(B) Permanent neurological deficit resulting
from cerebral vascular accident;
(C) End stage renal failure;
or
(D) Acquired Immune Deficiency Syndrome.
Authority
G.S.
58-2-40;
58-3-150;
58-7-15(1);
58-58-1;
Eff. March 1, 1992;
Pursuant to
G.S.
150B-21.3A, rule is necessary without substantive public interest Eff. May
1, 2018.
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