§ 31A-22-631 — Policy summary or illustration.

(1) (1)(a) Except as provided in Subsection (1)(b), at the time a life insurance policy is delivered, a policy summary or illustration shall be delivered for the life insurance policy if:
(1)(a)(i) the life insurance policy includes riders or supplemental benefits, including accelerated benefits; and
(1)(a)(ii) receipt of benefits under the life insurance policy is contingent upon morbidity requirements.
(1)(b) In the case of a direct response solicitation, the insurer shall deliver the policy summary or illustration at the sooner of:
(1)(b)(i) the applicant's request; or
(1)(b)(ii) at the time of policy delivery regardless of whether the applicant requests a policy summary or illustration.
(2) In addition to complying with all applicable requirements, the policy summary or illustration shall include:

(2)(a) a clear and prominent disclosure of how the rider or supplemental benefit interacts with other components of the policy, including deductions from death benefits and policy values;
(2)(b) an illustration for each covered person of:
(2)(b)(i) the amount of benefits;
(2)(b)(ii) the length of benefits; and
(2)(b)(iii) the guaranteed lifetime benefits, if any;
(2)(c) a disclosure of the maximum premiums for the rider or supplemental benefit;
(2)(d) any exclusions, reductions, or limitations on the benefits of the rider or supplemental benefit; and
(2)(e) if applicable to the policy type:
(2)(e)(i) a disclosure of the effects of exercising other rights under the policy; and
(2)(e)(ii) guaranteed maximum lifetime benefits.

Legislative History

Enacted by Chapter 116, 2001 General Session