Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 31.00 - Life Insurance Solicitation › Section 31.04 - Definitions

Current through Register 1525, July 5, 2024
For the purpose of
				211
				CMR 31.00, the following definitions shall
				apply:
Buyer's Guide
means the current Life
				Insurance Buyer's Guide adopted by the National Association of Insurance
				Commissioners (NAIC) or language approved by the Commissioner of
				Insurance.
Current Scale of Nonguaranteed
				Elements
means 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.
Generic Name
means a short title which
				is descriptive of the premium and benefit patterns of a policy or rider.
Nonguaranteed Elements
means 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.
Policy Data
means 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.
Policy Summary
means a written
				statement describing the elements of the policy including but not limited
				to:
(a) A prominently placed title as follows:
STATEMENT OF POLICY COST AND BENEFIT INFORMATION;
(b) The name and address of the insurance producer, or, if no
				insurance producer is involved, a statement of the procedure to be followed in
				order to receive responses to inquiries regarding the policy summary;
(c) 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;
(d) The Generic Name of the basic policy and each rider;
(e) The following amounts, where applicable, for the first five
				policy years and representative policy years thereafter sufficient to clearly
				illustrate the premium and benefit patterns; including at least one age from 60
				through 65 and policy maturity:
1. The annual premium for the basic policy;
2. The annual premium for each optional rider;
3. 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;
4. The total guaranteed cash surrender values at the end of the
				year with values shown separately for the basic policy and each rider;
				and
5. Any endowment amounts payable under the policy that are not
				included under cash surrender values.
(f) 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
(g) The date on which the policy summary is prepared.
Pre-need Funeral Contract and
				Arrangement
means an agreement by or for an individual before that
				individual's death relating to the purchase or provision of specific funeral or
				cemetery merchandise or services.