VMAINE LIFE INSURANCE LAW
COMPLETE DETAILED CASE STUDY
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
COMPLETE DETAILED CASE STUDY
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
