Maine Life Insurance LAW

Maine Life Insurance LAW solicitation and cost disclosure -buyers guide -policy summary -policy illustrations buyers guide contains information that helps applicant decide how much life insurance to buy determine what type of policy is needed and compares the costs of similar policies policy summary written statement describing the elements of a life insurance policy has name, address of producer & insured has name of policy and each rider tells annual premium, cash surrender values, guaranteed death benefits and policy loan interest rates also has life insurance cost indexes, including a surrender cost index and a net payment cost index references to policy dividends must include a statement that DIVIDENDS are not guaranteed things producer has to do before accepting premium must provide a BUYER'S GUIDE & preliminary statement of policy cost BEFORE accepting the initial premium things producer has to do before or at time of policy DELIVERY same things as before accepting premium & must also provide a POLICY SUMMARY preliminary statement of policy cost statement, similar to buyer's guide but less detailed designed to help applicant compare cost of different life insurances and determine how much coverage to buy considered misrepresentation if you fail to provide: buyer's guide, preliminary statement of policy cost or policy summary policy illustrations basic illustrations must include: NUMERIC SUMMARY of death benefits, cash values and contract premium for policy years (5,10,20 and at age 70) also must include statement signed by the applicant and the producer stating that with illustrations, can things change? yes, even if you receive the copy of the illustration the insured has to understand that ANY NON-GURANTEED ELEMENTS ILLUSTRATED ARE SUBJECT TO CHANGE copy of the illustration when used by a producer must be submitted to the insurer and provided to the applicant AT THE TIME OF POLICY APPLICATION what if no illustration used? if not illustration used by producer, or if policy is applied for other than illustrated..... applicant MUST SIGN A FORM acknowledging that an ILLUSTRATION CONFORMING to the policy is issued will be provided no later than AT THE TIME OF POLICY DELIVERY supplemental illustrations are available at the request of the applicant policy illustrations requirement apply to ALL GROUP AND INDIVIDUAL LIFE EXCEPT: variable life individual and group annuity contracts credit life life policies w/no illustrated death benefits on any individual exceeding $10,000 AIDS testing requirements must be voluntary only undertaken w/patient's knowledge must give their written informed consent before test can happen if questions are designed to establish the sexual orientation of the applicant, then no questions may be used on app insurers must notify applicant of available post-test counseling if HIV positive HIV positive tests are reported to MIB reported in non-specific manner as GENERIC BLOOD DISORDERS changes in the application no alterations w/o applicants written consent except insertions may be made by insurer for ADMINISTRATIVE PURPOSES ONLY policy provisions maine has a 10 DAY FREE LOOK, starting @ policy delivery on INDIVIDUAL LIFE INSURANCE all life policies have 30 DAY GRACE PERIOD what happens if claim arises during grace period? the amount of the premium due, together with interest, MAY BE DEDUCTED FROM THE POLICY PROCEEDS life insurance incontestable AFTER they have been in force for TWO YEARS on participating life insurance policies, what must the insurer do annually w/any surplus? (profits) they must annually APPORTION(divide) any divisible surplus(profits) by end of 3RD POLICY YEAR may elect to have dividends paid in cash, or applied to any other dividend option dividends are NOT guaranteed viatical settlements written agreement between viator and settlement provider establishing the term of which COMPENSATIONS will be paid IN RETURN for the viator's ASSIGNMENT of his LIFE INSURANCE DEATH BENEFITS settlement provider a person other than the viator that enters into a settlement contract viator