Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 92 - Universal Life Insurance › Rule 191-92.6 - Mandatory Policy Provisions

Current through Register Vol. 47, No. 3, July 24, 2024
Periodic disclosure to policyholder.
The
				  policy shall provide that the policyowner be sent, without charge, at least
				  annually, a report which will serve to keep such policyowner advised as to the
				  status of the policy. The end of the current report period must be not more
				  than three months prior to the date of the mailing of the report. Specific
				  requirements for this report are detailed in rule 191-92.8 (508).
Current illustrations.
The annual report
				  shall provide notice that the policyholder may request an illustration of
				  current and future benefits and values.
Policy guarantees.
The policy shall provide
				  guarantees of minimum interest credits and maximum mortality and expense
				  charges. All values and data shown in the policy shall be based on guarantees.
				  Figures based on nonguarantees shall not be included in the policy.
Calculation of cash surrender values.
The
				  policy shall contain at least a general description of the calculation of cash
				  surrender values including the following information:
a. The guaranteed maximum expense charges and
				loads;
b. Any limitation on the
				crediting of additional interest. Interest credits shall not remain conditional
				for a period longer than 24 months;
c. The guaranteed minimum rate or rates of
				interest;
d. The guaranteed maximum
				mortality charges;
e. Any other
				guaranteed charges; and
f. Any
				surrender or partial withdrawal charges.
Changes in basic coverage.
If the
				  policyowner has the right to change the basic coverage, any limitation on the
				  amount or timing of such change shall be stated in the policy. If the
				  policyowner has the right to increase the basic coverage, the policy shall
				  state whether new periods for contestability or suicide apply to the additional
				  amount of coverage.
Grace period and lapse.
The policy shall
				  provide that written notice be sent to the policyowner's last-known address at
				  least 30 days prior to termination of coverage. A flexible premium policy shall
				  provide for a grace period of at least 30 days after lapse. Unless otherwise
				  defined in the policy, lapse shall occur on that date on which the net cash
				  surrender value first equals zero.
Misstatement of age or sex.
If there is a
				  misstatement of age or sex in the policy, the amount of the death benefit shall
				  be that which would be purchased by the most recent mortality charge at the
				  correct age or sex. The commissioner may approve other methods which are deemed
				  satisfactory.
Maturity date.
If a policy provides for a
				  maturity date, end date, or similar date, then the policy shall also contain a
				  statement, in close proximity to that date, noting that it is possible that
				  coverage may not continue to the maturity date even if scheduled premiums are
				  paid in a timely manner, if such is the case.