NAC686A.435. Policy summaries.

     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.

     2. The policy summary must be a separate document. All required information must be set out in a manner which does not minimize or render any portion of the information obscure. Any amounts which remain level for 2 or more years of the policy may be represented by a single number if it is clearly indicated which amounts are applicable for each policy year. Amounts in paragraph (e) of subsection 1 of this section must be listed in total, not on a per thousand or per unit basis. If more than one insured is covered under one policy or rider, guaranteed death benefits must be displayed separately for each insured or for each class of insureds if death benefits do not differ within the class. Zero amounts must be displayed as zero and may not be displayed as blank spaces.

     [Comm’r of Insurance, LH-6 § VI, eff. 11-22-78]