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
Policy provision that provides coverage for continuing payroll expense of all employees of an insured business (except for officers and executives) for the first specified number of days of ...
Insurance coverage that protects the exporter (even though the exporter may be in total compliance with the terms and conditions of the contract) in the event a foreign government calls the ...
Group appointed by President Nixon in 1971 to study workers compensation laws under the authorization of the occupational safety and health act (OSHA). It issued sweeping recommendations to ...
Person who commits a tort, a type of wrongful act, that causes injury or damage. ...
Policy that comes into existence or adjusts the amount of coverage to provide protection for newly acquired or increasing values of an insured's real or personal property. ...
Act that requires the Department of Labor (DOL) to have a formal program to educate the public about the importance of saving for retirement. The DOL is also required to educate the public ...
An act or violation that consists of two wrongs: tort negligent act or omission by one or more parties against the person or property or another party or parties, liability insurance is ...
Contracts of reinsurance in which expected income from investments is a major component of the UNDERWRITING process. Also, the ultimate liability of the reinsurer is limited. The reinsurer ...
Insurance policy renewable at the option of the insured for a specified number of years or to a stated age. The insurance company cannot refuse to renew the policy and cannot change any of ...
Have a question or comment?
We're here to help.