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

243 words·~1 min read·/ut/title-31a/chapter-22/31a-22-631·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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:

(i)the life insurance policy includes riders or supplemental benefits, including accelerated benefits; and

(ii)receipt of benefits under the life insurance policy is contingent upon morbidity requirements.

(b)In the case of a direct response solicitation, the insurer shall deliver the policy summary or illustration at the sooner of:

(i)the applicant's request; or

(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:

(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;

(b)an illustration for each covered person of:

(i)the amount of benefits;

(ii)the length of benefits; and

(iii)the guaranteed lifetime benefits, if any;

(c)a disclosure of the maximum premiums for the rider or supplemental benefit;

(d)any exclusions, reductions, or limitations on the benefits of the rider or supplemental benefit; and

(e)if applicable to the policy type:

(i)a disclosure of the effects of exercising other rights under the policy; and

(ii)guaranteed maximum lifetime benefits.

Enacted by Chapter 116 , 2001 General Session