Life Insurance Illustrations Model Regulation
Definition of "Life insurance illustrations model regulation"
Regulation set forth by the national association of insurance commissioners (naic) to govern life insurance sales illustrations. Includes the following major provisions:
- POLICY OWNER must be provided an annual report of the policy status if illustrations were used in conjunction with selling the policy.
- An agent must sign the illustrations with copies furnished to the insurance company and the policy owner.
- The COMMISSIONER OF INSURANCE must be notified by the insurance company if a policy is to be sold with or without illustrations.
- Illustrations' non-guaranteed elements cannot be more favorable than the lesser of the currently payable scale or the disciplined current scale as defined by law.
- Specific format guidelines must be followed by the illustrations.
- Illustrations must contain a narrative summary and a numerical table, as well as tabular details.
- The regulation applies to all individual life, group life, and certificate life policies with the exceptions of individual and group annuities, variable life, credit life, and those life policies whose death benefits are less than $10,000.
- The board of directors of the insurance company is required to appoint an illustration actuary who must certify on an annual basis that the illustrations meet the requirements of the regulation.
Popular Insurance Terms
Uneven quality of a product made by the same manufacturer. A manufacturer is responsible for producing products of similar quality, and can be held liable for those that deviate materially ...
Liability created when an individual who offers services to the general public claims expertise in a particular area greater than the ordinary layman. Today, suits are frequently brought ...
Maximum limit of liability of an insurance company for a particular claim or kind of loss that is applicable in general to all such claims or losses. This maximum limit of liability is ...
List of injuries and diseases covered in a health insurance policy. Consumers are well advised to read and understand the definitions of injuries and diseases in a health insurance policy. ...
Provision in a life insurance policy that permits the policy owner to name anyone as primary and secondary beneficiaries. The policy owner may change the beneficiaries at any time by simply ...
Coverage in a separate policy or as an endorsement to the commercial general liability (CGL) form, for liability exposures for an employee who drives a leased car or his or her own ...
Outer covering containing an insurance policy; in many instances it lists provisions common to several types of policies. ...
Remedy imposed by a court of law, usually in the form of a monetary award, as compensation to the insured party for the civil wrong incurred. A civil action is initiated by the injured ...
Method of terminating a split dollar life insurance policy by the company transferring its interest in the policy (after the company has effected the largest policy loan permitted equal to ...
Have a question or comment?
We're here to help.