Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 25 - LIFE AND ANNUITIES
Part 3 - Life Insurance Disclosure (formerly Insurance Regulation 27) (230-RICR-20-25-3)
Section 230-RICR-20-25-3.4 - Definitions
Universal Citation: 230 RI Code of Rules 20 25 3.4
Current through September 18, 2024
A. For the purposes of this Part, the following definitions shall apply:
1.
"Buyer's guide" means the current Life Insurance Buyer's Guide adopted by the
National Association of Insurance Commissioners (NAIC) or language approved by
Insurance Commissioner.
2. "Current
scale of nonguaranteed elements" means a formula or other mechanism that
produces values for an illustration as if there is no change in the basis of
those values after the time of illustration.
3. "Generic name" means a short title which
is descriptive of the premium and benefit patterns of a policy or a
rider.
4. "Policy data" means a
display or schedule of numerical values, both guaranteed and nonguaranteed for
each policy year or a series of designated policy years of the following
information: illustrated annual, other periodic, and terminal dividends;
premiums; death benefits; cash surrender values and endowment
benefits.
5. "Policy summary" means
a written statement describing the elements of the policy including but not
limited to:
a. A prominently placed title as
follows: STATEMENT OF POLICY COST AND BENEFIT INFORMATION.
b. The name and address of the insurance
agent, or, if no agent is involved, a statement of the procedure to be followed
in order to receive responses to inquiries regarding the Policy
Summary.
c. The full name and home
office or administrative office address of the company in which the life
insurance policy is to be or has been written.
d. The Generic Name of the basic policy and
each rider.
e. The following
amounts, where applicable, for the first five (5) policy years and
representative policy years thereafter sufficient to clearly illustrate the
premium and benefit patterns, including at least one (1) age from sixty (60)
through sixty-five (65) and policy maturity:
(1) The annual premium for the basic
policy;
(2) The annual premium for
each optional rider;
(3) The amount
payable upon death at the beginning of the policy year regardless of the cause
of death, other than suicide or other specifically enumerated exclusions, which
is provided by the basic policy and each optional rider, with benefits provided
under the basic policy and each rider shown separately;
(4) The total guaranteed cash surrender
values at the end of the year with values shown separately for the basic policy
and each rider, and
(5) Any
endowment amounts payable under the policy that are not included under
guaranteed cash surrender values above.
f. The effective policy loan annual
percentage interest rate, if the policy contains this provision, specifying
whether this rate is applied in advance or in arrears. If the policy loan
interest rate is adjustable, the Policy Summary shall also indicate that the
annual percentage rate will be determined by the company in accordance with the
provisions of the policy and the applicable law; and
g. The date on which the Policy Summary is
prepared.
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