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
Table used in calculating various nonforfeiture values for industrial life insurance policies. These tables give the minimum values that must be generated to the policyowner. The insured's ...
Liability incurred by one insured as the result of his or her damaging another insured when both insureds are covered under the same liability insurance policy. Each insured must be treated ...
Life insurance: Bonds most state regulations permit life insurance company investments in debentures, mortgage bonds, and blue chip corporate bonds. Stocks(a) preferred stock investment ...
fee that is the most consistently charged by the physician for a particular procedure. fee that is usual for a particular procedure charged by the majority of physicians with similar ...
Plan whereby adjustments are made in the premium, as the premium increases to reflect the non proportionate increases in expenses. Generally, the expenses of acquisition costs, ...
Same as term Convention Examination: audit of the convention blank (NAIC Statement Blank) every third year as to all of the financial activities of a company; company claim practices; and ...
Additional amount of surplus from an additional amount of capital necessary to act as a supplement to the cash flow in the event unforeseen contingencies occur that disrupt or impair the ...
Trade association whose objective is to further the interests of its membership, as well as to inform the public on the role of its members. ...
Payment of an employee's employee benefit insurance plan benefits to the employee's individual retirement account ( IRA) or to another plan maintained by the employer. ...
Have a question or comment?
We're here to help.