NAC686A.4745. Information to be included in basic illustration when premium outlay or contract premium changes; other information required under certain circumstances.

     1. A basic illustration must include, without limitation, the following information for each policy year from years 1 to 10, inclusive, for every fifth policy year thereafter ending at the age of 100 years of the insured, or upon maturity or final expiration of the policy, and except for term insurance beyond the 20th year, for any year in which the premium outlay or contract premium changes:

     (a) The premium outlay or contract premium, and the method by which the applicant intends to pay the premium;

     (b) The corresponding guaranteed death benefit; and

     (c) The corresponding guaranteed cash surrender value of the policy.

     2. If the policy provides for a contract premium, the guaranteed death benefit and cash surrender value of the policy must correspond to the contract premium.

     3. Nonguaranteed elements may be shown if they are described in the contract. If the basic illustration is for a policy on which the insurer intends to credit terminal dividends, the nonguaranteed elements may be shown if the insurer’s current practice is to pay terminal dividends. If any nonguaranteed elements are shown, they must be shown at the same durations as the corresponding guaranteed elements. If no guaranteed benefit or value is available at any duration for which a nonguaranteed benefit or value is shown, a zero must be displayed in the column for guaranteed benefits.

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