NAC686A.4735. Contents of numeric summary of death benefits and values of policy in basic illustration.

     1. A basic illustration must include after the narrative summary a numeric summary of the death benefits and values of the policy being illustrated, and the premium outlay or contract premium. If the policy provides for a contract premium, the guaranteed death benefits and values must be based on the contract premium. This summary must be shown for policy years 5, 10 and 20, and at the age of 70 years of the insured. For a policy issued to a single applicant on multiple lives, commonly referred to as a multiple-life policy, the summary must be shown for policy years 5, 10, 20 and 30.

     2. A numeric summary for any policy must include, without limitation:

     (a) The guaranteed elements of the policy;

     (b) The illustrated scale; and

     (c) The illustrated scale with the nonguaranteed elements reduced as follows:

          (1) Dividends at 50 percent of the dividends contained in the illustrated scale used;

          (2) Nonguaranteed credited interest at rates that are the average of the guaranteed rates and the rates contained in the illustrated scale used; and

          (3) All nonguaranteed charges, including, but not limited to, charges for term insurance, mortality and expenses, at rates that are the average of the guaranteed rates and the rates contained in the illustrated scale used.

     3. If coverage will cease before the policy reaches maturity or the insured reaches the age of 100 years, the year in which coverage ceases must be identified for each base required to be included in the numeric summary pursuant to subsection 2.

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