Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-131 - LIFE INSURANCE DISCLOSURE REGULATION › Section 482-1-131-.04 - Definitions

Current through Register Vol. 42, No. 9, June 28, 2024
For the purposes of this chapter, the following definitions
				shall apply:
(a) Buyer's Guide. The
			 current Life Insurance Buyer's Guide adopted by the National Association of
			 Insurance Commissioners (NAIC) or language approved by the
			 commissioner.
(b) Current Scale of
			 Nonguaranteed Elements. A formula or other mechanism that produces values for
			 an illustration as if there is no change in the basis of those values after the
			 time of illustration.
(c) Generic
			 Name. A short title that is descriptive of the premium and benefit patterns of
			 a policy or a rider.
(d)
			 Nonguaranteed Elements. The premiums, credited interest rates (including any
			 bonus), benefits, values, non-interest based credits, charges or elements of
			 formulas used to determine any of these, that are subject to company discretion
			 and are not guaranteed at issue. An element is considered non-guaranteed if any
			 of the underlying non-guaranteed elements are used in its
			 calculation.
(e) Policy Data. A
			 display or schedule of numerical values, both guaranteed and nonguaranteed for
			 each policy year or a series of designated policy years of the following
			 information: illustrated annual, other periodic, and terminal dividends;
			 premiums; death benefits; cash surrender values and endowment
			 benefits.
(f) Policy Summary. A
			 written statement describing the elements of the policy, including, but not
			 limited to:
1. A prominently placed title as
			 follows: STATEMENT OF POLICY COST AND BENEFIT INFORMATION;
2. The name and address of the insurance
			 agent or, if no agent is involved, a statement of the procedure to be followed
			 in order to receive responses to inquiries regarding the Policy
			 Summary;
3. The full name and home
			 office or administrative office address of the company in which the life
			 insurance policy is to be or has been written;
4. The generic name of the basic policy and
			 each rider;
5. The following
			 amounts, where applicable, for the first five (5) policy years and
			 representative policy years thereafter sufficient to clearly illustrate the
			 premium and benefit patterns; including at least one age from sixty (60)
			 through sixty-five (65) and policy maturity:
(i) The annual premium for the basic
			 policy;
(ii) The annual premium for
			 each optional rider.
(iii) The
			 amount payable upon death at the beginning of the policy year regardless of the
			 cause of death, other than suicide or other specifically enumerated exclusions,
			 that is provided by the basic policy and each optional rider; with benefits
			 provided under the basic policy and each rider shown separately;
(iv) The total guaranteed cash surrender
			 values at the end of the year with values shown separately for the basic policy
			 and each rider; and
(v) Any
			 endowment amounts payable under the policy that are not included under cash
			 surrender values above;
6. The effective policy loan annual
			 percentage interest rate, if the policy contains this provision, specifying
			 whether this rate is applied in advance or in arrears. If the policy loan
			 interest rate is adjustable, the policy summary shall also indicate that the
			 annual percentage rate will be determined by the company in accordance with the
			 provisions of the policy and the applicable law; and
7. The date on which the policy summary is
			 prepared.