All life insurance filings must include a signed actuarial memorandum describing
the policy and the reserve and nonforfeiture value methodology, in accordance with
Sections 83-7-23 and 83-7-25.
For all policies with non-guaranteed elements, a statement that the policy will
be illustrated or nonillustrated must be made at the time of filing. If illustrated,
the requirements of Regulation 98-2 apply, including actuarial certifications.
For all policies with an accelerated death benefit provision, the requirements of
Section 83-7-101-119 apply. This includes, but is not limited to, the option of
a lump sum payment or periodic payments; the inclusion of wording that states that
if periodic payments are elected, periodic statements will be sent to the owner;
provision for a disclosure form illustrating the effect of the payment of the accelerated
benefits; an actuarial memorandum; and disclosure of the method of premium calculation.
All flexible/universal/interest sensitive life insurance policies should contain
a provision that the current values of the contract will be furnished to the owner
or insured at least annually, provide for illustrative reports and satisfy all other
requirements of Regulation 84-106. Those policies must also provide for partial
withdrawal of cash values.
All life insurance policies must contain in substance all the following provisions
except those not applicable to single premium, group or term policies:
Section 83-7-13. The application must be attached to the policy; otherwise, the
company shall not be permitted to deny that any of the statements in the application
Section 83-7-15. There must be a misstatement of age provision. Misstatement of
nonsmoking or smoking status is not allowed.
Credit life must contain a suicide exclusion that does not exceed 12 months.
Section 83-7-17. The face of the policy must show plainly the kind and character
of the policy, and all filings must be accompanied by the proper filing fee.
There must be a grace period of not less than 30 days.
There must be an incontestability period of not more than 24 months.
There must be an entire contract and statements deemed representations provision.
There must be a dividends provision for participating policies.
Section 83-7-25. There must be a values provision for policies with cash values.
The nonforfeiture factor must be on the same basis as the table of values.
Section 83-7-26. There must be a policy loan provision for policies with cash values.
There must be a loan interest rate provision.
If the policy has a persistency bonus, the fact that there is a persistency bonus
must be disclosed on the face of the policy.
There must be a settlement options table.
There must be a reinstatement after a premium default provision.
All authorized receipts from an insurance company must contain the wording required
by Regulation 79- 001.
Bulletin 80-1. All indeterminate premium policies must comply with the Indeterminate
Section 83-7-51. The insured shall have the right to return the policy within 10
days of delivery and have premium refunded if dissatisfied for any reason.
Regulations 78-2 and 84-101. Variable life and annuity contracts should comply.