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
Additional amount of surplus generated by an additional amount of capital to be included in the surplus above that required by the statutory requirements. This additional surplus is ...
Elements common to all life insurance policies. While state insurance laws do not prescribe the exact words that must be in a life insurance policy, certain standard provisions must be ...
Coverage for musicians and other providers of musical services such as musical instrument dealers. Musical instruments, service equipment, and sheet music are insured on an all risks basis ...
Conditions found in employee benefit plans such as pensions, under which minimum requirements, such as 20 years of service, must be met by an employee to qualify for benefits. ...
Irrevocable living trust (rights to make any changes are forfeited by the grantor permanently) in which the grantor forfeits control of all assets placed in the trust. However, the grantor ...
Policies that have been sold to and paid for by an insured, but not yet delivered to the insured. ...
Difference between the yield on earning assets and the cost of interest-bearing liabilities. ...
Investment risk associated with the psychology of the market in that emotions affect the price of a company's stock that, in most instances, has nothing to do with the current or potential ...
Endowment period of time, in life insurance, at which the face amount of the policy is payable to the insured. ...
Have a question or comment?
We're here to help.