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
Type of commercial form that provides coverage for business vehicles regardless of whether they are owned, leased, hired, or borrowed. The form's coverages are divided into the following ...
Additional coverage available on most property insurance policies through the extended coverage endorsement. Windstorms, including hurricanes, cyclones, and high winds, are not among the ...
Losses paid plus positive or negative changes in the year-end loss reserves during that particular year. The total amount includes payments for any old claims as well as new claims, plus ...
Requirement of an employer to report annually to the U.S. Treasury Department the names of employees who terminated employment with vested benefits, and the amount of the benefits. The ...
Physical contact of an automobile with another inanimate object resulting in damage to the insured car. Insurance coverage is available to provide protection against this occurrence. ...
Peril that occurs when personal property of two or more people is mixed to such an extent that any one owner can no longer identify his or her property. ...
Sum of money to be received by an insured in the event a given loss occurs. ...
Individual who possesses a unique ability essential to the continued success of a business firm. For example, this individual might have the technical knowledge necessary for research and ...
Observance of an event occurring on a repeated basis that leads one to believe that a certain probability is attached to the occurrence of that event. For example, if there are a red ball ...
Have a question or comment?
We're here to help.