Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 240 - MAINE LIFE INSURANCE SOLICITATION AND COST DISCLOSURE › Appendix 031-240-B

Current through 2024-29, July 17, 2024
LIFE INSURANCE SOLICITATION AND COST DISCLOSURE
PRELIMINARY STATEMENT OF POLICY COST FORMAT
This Appendix contains the form to be used by all insurers
				  for the Preliminary Statement of Policy Costs as defined in Subsection
				  4(F) of the Maine
				  Life Insurance Solicitation and Cost Disclosure Rule (hereinafter referred to
				  as the Rule), unless an illustration subject to the requirements of Rule
				  Chapter 910 is used or unless approval of an alternate format is granted by the
				  Superintendent pursuant to Subsection
				  4(F) of the
				  Rule.
The Bureau of Insurance expects each life insurer to provide
				  sufficient copies of the form to its marketing force and to instruct it in use
				  of the form consistent with the Maine Insurance Code andRules.
Each insurer is also expected to establish a procedure to see
				  that such form is processed in a manner that enables the insurer to comply with
				  Subsection
				  5(D) of the
				  Rule.
It is contemplated that the Preliminary Statement of Policy
				  Cost will be capable of full completion by the agent in the large majority of
				  sales situations. The Bureau of Insurance, however, realizes that specific
				  situations may arise when an agent's ability, in good faith, to complete the
				  form may be limited. In these situations the Bureau of Insurance expects a good
				  faith effort on the part of the agent to complete the form to the fullest
				  extent reasonably possible. Sufficient information should be noted on this form
				  so that the applicant understands the nature of and basic reason for any
				  incomplete answers.
It is expected that each insurer will require its agents to
				  answer fully all questions for which the appropriate information is available
				  or should be available to the agent.
All insurers are expected to provide sufficient data and
				  training to their agents, so that the agents can provide 10 and 20 year
				  surrender and net payment cost indexes as defined in Section
				  4 of the Rule, on a preliminary basis,
				  given an applicant's age, sex and size of the proposed policy applied
				  for.
Required use of this form in no way affects the use or
				  distribution of any other sales material by an insurer or agent.
It should be stressed that the intent of this form is to
				  provide applicants with basic preliminary data concerning specific life
				  insurance contracts at a point in the sales process prior to issuance or
				  delivery of the policy. The Preliminary Statement of Policy Costs is not,
				  however, intended to include such extensive data as is contained in the final
				  Policy Summary. Nor is there any intent to require agents to convey information
				  beyond their ability to know or to create excessive market distortions.
The format to be used by all insurers is as follows:
NAME OF INSURER
ADDRESS OF INSURER
PRELIMINARY STATEMENT OF POLICY COST
For ______________________________________________
				  _____________ _____________
(Proposed Insured) (Age) (Sex)
Policy Name
				  ___________________________________________________________________
IMPORTANT NOTICE
BEFORE YOU BUY ANY LIFE INSURANCE, you should:
Decide how much life insurance you need.
									 Figure out how much you can afford to pay in premium.
					 You should not buy a policy unless you can afford the premiums and intend to
					 stick with it. A policy which is a good buy when held for 20 years can be very
					 costly if you quit during the early years of the policy. If you surrender such
					 a policy during the first few years, you may get little or nothing back and
					 much of your premium may have been used for company expenses.
									 Find out what type of policy best fits your individual
					 and family needs.
									 Note that the cost of protection varies depending on
					 when and how the policy stops, that is by death of the insured or by surrender
					 of the policy.
									 Compare costs of similar insurance policies using the
					 index numbers shown on the back of this notice. COMPARISON SHOPPING SAVES
					 MONEY!
									 Try to determine how well the insurance company and
					 agent will provide service to you in the future.
									 READ THE BUYER'S GUIDE. It will help you to make a
					 good purchase decision.
									 READ THE REVERSE SIDE OF THIS NOTICE!
Agent: _____________________________ Prepared on:
				  _____________________________
PLAN OF INSURANCE:
If this is term insurance, it is renewable to age ______ and
				  convertible to age ______ .
AMOUNT OF INSURANCE:
ANNUAL PREMIUM:
COST INDEXES: When comparing the cost of two or more
				  policies:
LOOK FOR POLICIES WITH LOW INDEX NUMBERS. Generally,
					 they will cost less than policies with higher index numbers.
									 COMPARE POLICIES OF SIMILAR PLANS AND FACE AMOUNT
					 ONLY.
10th Year 20th Year
Net Payment Cost Index
(Cost of protection if
insured dies at end of:) ________ ________
Surrender Cost Index
(Cost of protection if
the policy is surrendered
at end of:) ________ ________
Dividends: This policy is: _____ guaranteed cost (does not
				  pay dividends)
_____ participating (pays dividends)
REMEMBER TO COMPARE THE COST INDEXES ABOVE WITH THOSE
					 WHICH WILL APPEAR IN YOUR POLICY SUMMARY. REQUEST AN EXPLANATION OF
					 DIFFERENCES.
By the time the Policy is delivered, you will be given a
				  complete Policy Summary, including cost data, which will be based on the
				  benefits and premiums of the Policy as issued. The figures shown in this
				  Preliminary Statement of Policy Cost are based on the assumption that a
				  proposed Policy is issued as applied for. Adjustments will be necessary if the
				  Policy is actually issued on some other basis. You may return any life
				  insurance policy delivered in Maine within 10 days of delivery and obtain a
				  full refund of all premium paid.