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31.09.09.00.htm 31.09.09.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 09 LIFE INSURANCE AND ANNUITIES Chapter 09 Life Insurance Illustrations Authority: Insurance Article, §2-109, 27-202, and 27-203, Annotated Code of Maryland
31.09.09.01.htm 31.09.09.01. 01 Purpose.. The purpose of this chapter is to provide rules for life insurance policy illustrations that will protect consumers and foster consumer education. The chapter provides illustration formats, prescribes standards to be followed when illustrations are used, and specifies the disclosures that are required in connection with illustrations. The goals of this chapter are to ensure that illustrations do not mislead purchasers of life insurance and to mak
31.09.09.02.htm 31.09.09.02. 02 Applicability and Scope.. This chapter applies to all group and individual life insurance policies and certificates except:. A. Variable life insurance;. B. Individual and group annuity contracts;. C. Credit life insurance; or. D. Life insurance policies with no illustrated death benefits on any individual exceeding $10,000..
31.09.09.03.htm 31.09.09.03. 03 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Actuarial Standards Board" means the board established by the American Academy of Actuaries to develop and promulgate standards of actuarial practice.2) "Basic illustration" means a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.3) "Contract premium" means the gross premium that is required to be paid u
31.09.09.04.htm 31.09.09.04. 04 Incorporation by Reference.. The Actuarial Standard of Practice No. 24 Compliance with the NAIC Life Insurance Illustrations Model Regulation (Adopted by the Actuarial Standards Board, December 1995) is incorporated by reference.
31.09.09.05.htm 31.09.09.05. 05 Policies To Be Illustrated.. A. Each insurer marketing policies to which this chapter is applicable shall notify the Commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on the effective date of this chapter, the insurer shall identify in writing those forms and whether or not an illustration will be used with the forms. For policy forms filed after the effective date of this chapter, the identific
31.09.09.06.htm 31.09.09.06. 06 General Rules and Prohibitions.. A. An illustration used in the sale of a life insurance policy shall:. 1) Satisfy the applicable requirements of this chapter;. 2) Be clearly labeled "life insurance illustration" and. 3) Contain the following basic information:. a) Name of insurer,. b) Name and business address of the producer or insurer's authorized representative, if any,. c) Name, age, and sex of the proposed insured, except where a composite illustration is permitted un
31.09.09.07.htm 31.09.09.07. 07 Standards for Basic Illustrations.. A. Format.. 1) A basic illustration shall conform with the requirements of this section.. 2) The illustration shall be labeled with the date on which it was prepared.. 3) Each page, including any explanatory notes or pages, shall be numbered and show its relationship to the total number of pages in the illustration; for example, the fourth page of a seven page illustration shall be labeled "page 4 of 7 pages"4) The assumed dates of p
31.09.09.08.htm 31.09.09.08. 08 Standards for Supplemental Illustrations.. A. A supplemental illustration may be provided if:. 1) It is appended to, accompanied by, or preceded by a basic illustration that complies with this chapter;2) The nonguaranteed elements shown are not more favorable to the policy owner than the corresponding elements based on the scale used in the basic illustration;3) It contains the same statement required of a basic illustration that nonguaranteed elements are not guaranteed; and
31.09.09.09.htm 31.09.09.09. 09 Delivery of Illustration and Record Retention.. A. If a basic illustration is used by an insurance producer or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this chapter, shall be:1) Submitted to the insurer at the time of policy application; and. 2) Provided to the applicant.. B. If the policy is issued other than as applied f
31.09.09.10.htm 31.09.09.10. 10 Annual Report; Notice to Policy Owners.. A. In the case of a policy designated as one for which illustrations will be used, the insurer shall provide each policy owner with an annual report on the status of the policy that shall contain at least the following information:1) For universal life policies, the report shall include the following:. a) The beginning and end date of the current report period;. b) The policy value at the end of the previous report period and at the end
31.09.09.11.htm 31.09.09.11. 11 Annual Certifications.. A. The board of directors of each insurer shall appoint one or more illustration actuaries.. B. The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with the Actuarial Standard of Practice No. 24 Compliance with the NAIC Life Insurance Illustrations Model Regulations, promulgated by the Actuarial Standards Board, and that the illustrated scales used in insurer-authorized illustrat
31.09.09.12.htm 31.09.09.12. 12 Penalties.. In addition to any other penalties provided by the laws of this State, an insurer or producer that violates a requirement of this chapter is guilty of a violation of Insurance Article, 27-202 and 27-203, Annotated Code of Maryland.
31.09.09.13.htm 31.09.09.13. 13 Separability.. If any provision of this chapter or its application to any person or circumstance is for any reason held to be invalid by any court of law, the remainder of the chapter and its application to other persons or circumstances are not affected.
31.09.09.9999.htm 31.09.09.9999. Administrative History Effective date: January 1, 1998 (24:23 Md. R. 1610) ―. Chapter recodified from COMAR 09.31.27 to COMAR 31.09.09, July 1998.
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