Nevada Administrative Code › Chapter 686A - Insurance: Trade Practices and Frauds › SOLICITATION AND SALE OF LIFE INSURANCE › General Provisions › Section 686A.435 - Policy summaries

Current through June 11,
				2024
1. Policy summaries
				required by NAC 686A.430 must contain:
(a) A
				prominently placed title as follows: Statement of Policy Cost and Benefit
				Information.
(b) 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.
(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 5 policy years and representative
				policy years thereafter, sufficient to clearly illustrate the premium and
				benefit patterns, including, but not necessarily limited to, the years for
				which life insurance cost indexes are displayed, and at least one age from 60
				through 65, or maturity, whichever is earlier:
(1) The annual premium for the basic
				policy.
(2) The annual premium for
				each optional rider.
(3) The
				guaranteed 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, which is provided by the basic policy and each optional
				rider, with benefits provided under the basic policy and each rider shown
				separately.
(4) Total guaranteed
				cash surrender values at the end of the year, with values shown separately for
				the basic policy and each rider.
(5) Cash dividends payable at the end of the
				year with values shown separately for the basic policy and each rider.
				(Dividends need not be displayed beyond the 20th policy year.)
(6) Guaranteed endowment amounts payable
				under the policy which are not included under guaranteed cash surrender values
				above.
(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 variable, the policy summary must include the
				maximum annual percentage rate.
(g)
				Life insurance cost indexes for 10 and 20 years, but not beyond the premium
				paying period. Separate indexes are displayed for the basic policy and for each
				optional term life insurance rider. These indexes need not be included for:
(1) Optional riders which are limited to
				benefits such as coverage for accidental death, disability waiver of premium,
				preliminary term life insurance coverage of less than 12 months, and guaranteed
				insurability; or
(2) Basic policies
				or optional riders covering more than one life.
(h) The equivalent level annual dividend, in
				the case of participating policies and participating optional term life
				insurance riders, under the same circumstances and for the same durations at
				which life insurance costs indexes are displayed.
(i) A policy summary which includes dividends
				must also include a statement that dividends are based on the company's scale
				and are not guaranteed, and a statement printed close to the equivalent level
				annual dividend as follows:
"An explanation of the intended use of the equivalent level
				  annual dividend is included in the life insurance buyer's guide."
(j) A statement printed near the
				life insurance cost indexes as follows:
"An explanation of the intended use of these indexes is
				  provided in the life insurance buyer's guide."
(k) The date on which the policy summary is
				prepared.