Current through Register Vol. 63, No. 9, September 1, 2024
(1) An accelerated
benefit provision shall include "accelerated benefit" or "accelerated death
benefit" as part of the descriptive title. The policy, certificate or rider
schedule must:
(a) Include one of the
following:
(A) Any premium or cost of
insurance charge designated for the accelerated benefit;
(B) The interest rate if fixed; or
(C) The method used by the insurer to
establish the interest rate in OAR
836-051-0370(3);
and
(b) Disclose any
administrative expense charge associated with the exercise of the accelerated
benefit.
(2) When a life
insurance policy or certificate containing an accelerated benefit provision is
applied for or delivered, or when an accelerated benefit rider to a life
insurance policy is applied for, delivered or added, the insurer shall give or
cause to be given a summary of coverage described in this section to the
applicant for the policy, certificate or rider. The description must include
all of the following:
(a) A brief summary of
the accelerated benefit and definitions of the conditions or occurrences
triggering payment of the benefit;
(b) An explanation of any effect of the
payment of an accelerated benefit on the cash value, accumulation account,
death benefit, premium payments, any loans or liens.
(c) Disclosure of the basis for payment,
whether a premium, cost of insurance charge, lien assessment or present value
calculation;
(d) A statement that
receipt of the accelerated benefit may be taxable and that assistance should be
sought from a personal tax advisor.
(3) When an accelerated benefit option is
exercised, the insurer shall provide the following to the policy holder or
certificate holder and any irrevocable beneficiary:
(a) An illustration that:
(A) Numerically demonstrates any effect the
payment of the benefit will have on the cash value, accumulation account, death
benefit, premium payments, any loans or liens;
(B) Separately illustrates the loaned amount
from the accelerated risk amount if the acceleration is based on a lien and the
interest accrued on the two portions are not at the same rate; and
(C) Includes a statement that receipt of
accelerated benefit payments may adversely affect the recipient's eligibility
for Medicaid or other government benefits or entitlements, that benefits may be
taxable and that assistance should be sought from a personal tax
advisor.
(b) An amended
schedule page showing any new, reduced in-force face amount and the continuing
premium requirements to keep the remaining coverage in force.
Stat. Auth.: ORS
731.244 & ORS
743.154
Stats. Implemented: ORS
743.154
