Kansas Administrative Regulations › Agency 40 - INSURANCE DEPARTMENT › Article 2 - LIFE INSURANCE › Section 40-2-14 - Life insurance and annuities; deceptive practices; requirements; prohibitions

Current through Register Vol. 43, No. 28, July 11, 2024
(a) This regulation
			 shall apply to each solicitation, negotiation, or procurement of life insurance
			 or annuities occurring within this state. This regulation shall apply to each
			 authorized issuer of life insurance or annuity contracts. This regulation shall
			 not apply to invitations to inquire about an insurance product if the
			 invitations do not constitute a solicitation of insurance. The policy summary
			 required by this regulation shall not apply to annuities, variable life
			 insurance, life insurance policies issued in connection with pension and
			 welfare plans subject to the employee retirement income security act of 1974,
			 credit life insurance, or group life insurance.
(b) In selling life insurance or annuities,
			 an agent shall, at the beginning of a solicitation, inform the prospective
			 purchaser that he or she is acting as an insurance agent. Each applicant shall
			 be furnished a policy summary at or before the time of policy delivery. For the
			 purpose of this regulation, a policy summary means a written statement
			 describing the elements of the policy. The summary shall include the following
			 information:
(1) The name and address of the
			 insurance agent or if an agent is not involved, the name, address and telephone
			 number of the person designated to receive inquiries regarding the policy
			 summary;
(2) the full name and
			 home office or administrative office address of the company writing the life
			 insurance or annuity policy;
(3)
			 the generic name of the basic policy or contract and each rider;
(4) amounts, where applicable, for the first
			 five policy years, the tenth and twentieth policy years, and for at least one
			 age from 60 through 65 or at maturity as follows:
(A) The annual premium for the basic policy;
(B) the annual premium for each
			 optional rider;
(C) the guaranteed
			 amount payable upon death, at the beginning of the policy year, for all causes
			 of death other than suicide, or other specifically enumerated exclusions. The
			 guaranteed amount payable under the basic policy and each rider shall be listed
			 separately;
(D) the total
			 guaranteed cash surrender values at the end of the year with values shown
			 separately for the basic policy and each rider;
(E) the cash dividends payable to the end of
			 the year with values shown separately for the basic policy and each rider,
			 except that dividends need not be displayed beyond the twentieth policy year;
			 and
(F) the guaranteed endowment
			 amounts payable under the policy which are not included under guaranteed cash
			 surrender values above;
(5)
(A) if a
			 policy summary includes dividend illustrations, a statement that dividends are
			 based on the company's current dividend scale and are not guaranteed;
(B) if a policy summary includes
			 interest rate illustrations, a statement that projected or assumed interest
			 rates are based on current interest rates and cannot be guaranteed;
(6) the effective policy loan
			 annual percentage interest rate, if the policy contains a loan provision. The
			 policy summary shall state whether this rate is applied in advance or in
			 arrears. If the policy loan interest rate is variable, the policy summary shall
			 include the maximum annual percentage rate;
(7) the date on which the policy summary is
			 prepared; and
(8) a statement to
			 the effect that the presentation does not recognize that, because of interest,
			 a dollar in the future has less value than a dollar today, unless the policy
			 summary includes index figures which recognize the time-value of money. If
			 index figures are included in the policy summary, the applicant shall receive
			 written notification at the time the policy summary is delivered that those
			 figures may be used only for comparing the relative costs of similar policies.
The policy summary shall consist of a separate document. All
				disclosure information required shall be set out in a manner that will not
				minimize or render any portion of it obscure. Amounts which remain level for
				two or more years may be represented by a single number if it clearly indicates
				what amounts apply to each policy year. Amounts in paragraph (4) of this
				subsection shall be listed in total. If multiple insureds are covered under one
				policy or rider, guaranteed death benefits shall be displayed separately for
				each insured, or for each class of insureds when death benefits do not differ
				within the class. Zero amounts shall be displayed as zero and shall not be
				displayed as a blank space.