NAC686A.471. Notification to Commissioner whether or not policy includes illustration; quotation of potential value required with nonterm group policy.

     1. An insurer selling policies of life insurance shall notify the Commissioner in writing whether a policy form will be sold with or without an illustration. Any notice may be changed by filing an amended notice with the Commissioner.

     2. If a policy form is designated pursuant to subsection 1 as one to be sold:

     (a) Without an illustration, an illustration must not be used for any policy using that form before the first anniversary of the policy.

     (b) With an illustration, the basic illustration must be prepared and delivered in accordance with NAC 686A.460 to 686A.479, inclusive, except that a basic illustration is not required to be provided to individual members of a group or to persons insured under coverage issued to a single applicant on multiple lives unless the coverage is sold to such persons. An illustration furnished to an applicant for a group policy of life insurance or a policy issued to a single applicant on multiple lives may be an individual or composite illustration representative of the coverage for the lives of members of the group or the multiple lives covered.

     3. An insurer shall furnish to potential enrollees of a nonterm group policy of life insurance a quotation with the enrollment materials. The quotation must show the potential values of the policy for sample ages and policy years on a guaranteed and nonguaranteed basis appropriate to the group and the coverage. The quotation is not an illustration for the purposes of this section, but all information provided in the quotation must be consistent with the illustrated scale.

     4. An insurer shall provide a basic illustration upon delivery of the certificate to enrollees of a nonterm group policy of life insurance who enroll for more than the minimum premium necessary to provide death benefits only. The insurer shall make a basic illustration available to such an enrollee upon request.

     (Added to NAC by Comm’r of Insurance by R089-97, eff. 1-14-98)