11 CRR-NY 53-2.1NY-CRR
11 CRR-NY 53-2.1
11 CRR-NY 53-2.1
53-2.1 Preliminary information for policies subject to section 4232(b) of the Insurance Law.
(a) The preliminary information shall be in writing and include, to the extent applicable, the following:
(1) the name and address of the insurance agent, or broker, or if no agent or broker is involved, a statement of the procedure to be followed to receive responses to inquiries concerning the preliminary information;
(2) the full name and home office, administrative office or branch or agency office address of the insurer in whose name the life insurance policy is to be written;
(3) the date of the preliminary information and the generic name of the policy, the initial amount of insurance and the initial annual premium for the base policy and each rider, if applicable;
(4) a table of values and benefits based upon current, median and guaranteed policy cost factors for the base policy and any rider at the end of each of the first five policy years, the 10th policy year and at the end of the policy years in which the proposed insured attains age 65, 75, 85 and 95. These values may be shown on a per thousand or per unit basis;
(5) the year coverage will terminate based upon current, median and guaranteed policy cost factors. These values may be shown on a per thousand or per unit basis;
(6) the interest rate basis for each table of values based upon current, median and guaranteed policy cost factors;
(7) the effective policy loan annual percentage interest rate and whether this rate is applied in advance or in arrears, adjustable or fixed;
(8) acknowledgment that the potential purchaser understands that policy values, cash surrender values and death benefits based on current and median policy cost factors are not guaranteed and that any changes in the company's interest earnings, expenses or claim experience may result in lower or higher premium payments or lower or higher policy benefits;
(9) a statement advising the applicant that when the policy is issued, a complete policy summary including cost data, based on the benefits, premiums and dividends of the policy as issued will be furnished, and that, following the receipt of the policy and policy summary, there will be a period of not less than 10 days within which the applicant may return the policy for an unconditional refund of the premium paid or the adjusted amount if such policy provides for a market-value adjustment pursuant to section 3203(a)(11) of the Insurance Law; and
(10) life insurance cost indexes and the equivalent level annual dividend for the basic policy for 10 and 20 years, but in no case beyond the premium-paying period.
(b) The table of values and benefits based on guaranteed policy cost factors shall be labeled in a prominent manner “guaranteed” and the table of values and benefits based on current and median policy cost factors shall be labeled in a prominent manner “not guaranteed.”
(c) The preliminary information shall be provided to the prospective purchaser at or prior to the time an application is taken and shall be signed and dated by the agent or broker and the applicant and a copy of the preliminary information shall be attached to the application submitted to the insurer. Notwithstanding the foregoing, no applicant for life insurance shall be prevented or delayed in effecting or applying for coverage by the requirements of this Subpart. In such cases where prior to application it is impractical to provide any items prescribed by this Subpart, such items may be estimated in good faith or furnished as soon thereafter as practical prior to the delivery of policy.
11 CRR-NY 53-2.1
Current through July 31, 2021
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.