Ala. Admin. Code r. 482-1-113-.06

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

Section 482-1-113-.06 - Criteria For Payment

(1) Lump Sum Settlement Option Required. Contract payment options shall include the option to take the benefit as a lump sum. The benefit shall not be made available as an annuity contingent upon the life of the insured.

(2) Restrictions on Use of Proceeds. No restrictions are permitted on the use of the proceeds.

(3) Accidental Death Benefit Provision. If any death benefit remains after payment of an accelerated benefit, the accidental death benefit provision, if any, in the policy or rider shall not be affected by the payment of the accelerated benefit.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-113-.06

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.