New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter A - Life, Accident and Health Insurance › Part 53 - Life And Annuity Cost Disclosure And Sales Illustrations › Subpart 53-2 - Disclosure Requirements › Section 53-2.2 - Policy summary information for policies subject to section 4232(b) of the insurance law

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A policy
					 summary shall include the following:
(1) a
					 prominently placed title as follows: "STATEMENT OF POLICY COST AND BENEFIT
					 INFORMATION;"
(2) the name and
					 address of the insurance agent or broker, or, if no agent or broker is
					 involved, a statement of the procedure to be followed in order to receive
					 responses to inquiries regarding the policy summary;
(3) the full name and home office,
					 administrative office or branch or agency office address of the insurer in
					 whose name the life insurance policy is to be or has been written;
(4) the generic name of the basic policy and
					 each rider;
(5) tables for the
					 first five policy years and every fifth year thereafter until the maturity date
					 containing the following:
(i) the annual
					 premium or annual planned premium for the basic policy;
(ii) the annual premium or annual planned
					 premium or maximum cost of insurance rate for each rider;
(iii) the death benefit at the beginning of
					 the policy year shown separately for the basic policy and each rider;
(iv) the policy value and cash surrender
					 value at the end of each year with values shown separately for the basic policy
					 and each rider;
(v) the death
					 benefits, policy values and cash surrender values based on the annual premium
					 or annual planned premium using the current, median and guaranteed policy cost
					 factors;
(vi) the interest rate
					 assumptions for each projection of policy values and death benefits based upon
					 current, median and guaranteed policy cost factors;
(vii) the dates the policy will terminate
					 based on the annual premium or annual planned premium and on the current,
					 median and guaranteed policy cost factors; and
(viii) the level annual premium from the
					 issue date that would, based upon guaranteed policy cost factors, continue the
					 policy to the maturity date;
(6) the effective policy loan annual
					 percentage interest rate specifying whether this rate is applied in advance or
					 arrears, adjustable or fixed, and if adjustable, the frequency at which such
					 rate is to be determined and the index upon which the maximum rate is based at
					 the time the policy is issued;
(7)
					 the date on which the policy summary is prepared;
(8) life insurance cost indexes for 10 and 20
					 years but in no case beyond the premium- paying period. Separate indexes are to
					 be displayed for the basic policy and each optional term life insurance rider.
					 Such indexes need not be included for optional riders which are limited to
					 benefits such as accidental death benefits, disability waiver of premium,
					 preliminary term life insurance coverage of less than 12 months and guaranteed
					 insurability benefits, nor for basic policies or optional riders covering more
					 than one life;
(9) 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 cost indexes are displayed;
(10) a policy summary which includes
					 dividends shall also include a statement that dividends are based on the
					 company's current dividend scale and are not guaranteed; in addition, the
					 summary shall include a statement in close proximity to the equivalent level
					 annual dividend as follows: "An explanation of the intended use of the
					 equivalent level annual dividend is included in the buyer's guide;"
					 and
(11) a statement in close
					 proximity to the life insurance cost indexes as follows: "AN EXPLANATION OF THE
					 INTENDED USE OF THESE INDEXES IS PROVIDED IN THE BUYER'S GUIDE."