California § 10509.973. 10509.973. (Added by Stats. 1996, Ch. 1106, Sec. 2.)

California Statutes

§ 10509.973. — 10509.973. (Added by Stats. 1996, Ch. 1106, Sec. 2.)

California § 10509.973.

JurisdictionCalifornia

Code INSInsurance Code - INS

Div. 2.DIVISION 2. CLASSES OF INSURANCE

Part 2.PART 2. LIFE AND DISABILITY INSURANCE

Ch. 5.6.CHAPTER 5.6. Life Insurance Cost Indexes

This text of California § 10509.973. (10509.973. (Added by Stats. 1996, Ch. 1106, Sec. 2.)) is published on Counsel Stack Legal Research, covering California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cal. Insurance Code - INS Code § 10509.973. (2026).

Text

Any comparison must be used with caution and should not be emphasized to the point that actual premiums and policy benefits are overshadowed.  Only similar plans of insurance should be compared.  Any dividend or nonguaranteed element used in calculating the Life Insurance Surrender Cost Index or the Life Insurance Net Payment Cost Index shall be  based on nonguaranteed elements calculated according to the standards required in Chapter 5.5 (commencing with Section 10509.950).  With respect to participating policies, care must be taken to describe the policy dividend as a refund or return of part of the premium paid, which is not guaranteed and which is dependent on the investment earnings, mortality experience, and expense experience of the insurer.

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Any comparison must be used with caution and should not be emphasized to the point that actual premiums and policy benefits are overshadowed. Only similar plans of insurance should be compared. Any dividend or nonguaranteed element used in calculating the Life Insurance Surrender Cost Index or the Life Insurance Net Payment Cost Index shall be based on nonguaranteed elements calculated according to the standards required in Chapter 5.5 (commencing with Section 10509.950). With respect to participating policies, care must be taken to describe the policy dividend as a refund or return of part of the premium paid, which is not guaranteed and which is dependent on the investment earnings, mortality experience, and expense experience of the insurer.