Ala. Admin. Code r. 482-1-113-.03

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-113-.03 - Definitions

(1) ACCELERATED BENEFITS. Benefits payable under a life insurance contract:

(a) To a policyowner or certificateholder, during the lifetime of the insured, in anticipation of death or upon the occurrence of specified life-threatening or catastrophic conditions as defined by the policy or rider; and

(b) Which reduce the death benefit otherwise payable under the life insurance contract; and

(c) Which are payable upon the occurrence of a single qualifying event which results in the payment of a benefit amount fixed at the time of acceleration.

(2) Qualifying event shall mean one or more of the following:

(a) A medical condition which would result in a drastically limited life span as specified in the contract, for example, twelve (12) months or less; or

(b) A medical condition which has required or requires extraordinary medical intervention, such as, but not limited to, major organ transplant or continuous artificial life support, without which the insured would die; or

(c) Any condition which usually requires continuous confinement in an eligible institution as defined in the contract if the insured is expected to remain there for the rest of his or her life; or

(d) A medical condition which would, in the absence of extensive or extraordinary medical treatment, result in a drastically limited life span. Such conditions may include, BUT ARE NOT LIMITED TO, one or more of the following:

1. Coronary artery disease resulting in an acute infarction or requiring surgery;

2. Permanent neurological deficit resulting from cerebral vascular accident;

3. End stage renal failure;

4. Acquired Immune Deficiency Syndrome; or

5. Other medical conditions which the commissioner shall approve for any particular filing; or

(e) Other qualifying events which the commissioner shall approve for any particular filing.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-113-.03

New: September 23, 1996; effective January 1, 1997. Filed for codification in the Alabama Administrative Code by the Department of Insurance on November 14, 2005, pursuant to the Code of Ala. 1975, § 27-7-43.

Statutory Authority:Code of Ala. 1975, § 27-2-17.