N.H. Admin. Code § Ins 303.06

Current through Register No. 45, November 7, 2024

Section Ins 303.06 - Penalty

(a) Failure of an insurer or agent to comply with any of the requirements contained in Ins 303.04 or Ins 303.05 of this part shall be a violation of the part, subject to the penalties provided in RSA 400-A:15, subject to the requirements therein, in addition to any other penalties provided by the laws of this state.

(b) After appropriate notice and hearing, an administrative fine of $2,500 shall be levied for each finding of violation of RSA 400-A:15, III if the penalty of suspension or revocation as specified below is not appropriate.

(c) The insurer or agent may request at hearing a reduced fine or no fine imposed under (b) above through successful demonstration that:

(1) There is no or minimal damage or costs to consumers, the State or other insurance entities as a result of the violation; and

(2) The insurer or agent has not committed multiple or repeated violations.

(d) Insurers and agents shall be subject to suspension pursuant to RSA 400-A:15,III if one of the following occurs:

(1) The violation is continuing; or

(2) There is a high probability the violation will be repeated, based on findings of record; and

(3) Imposition of a penalty other than suspension, such as a fine, will not be a sufficient deterrent.

(e) Insurers and agents shall be subject to revocation pursuant to RSA 400-A:15, III if:

(1) The violative act or omission was intentional or committed in bad faith; or

(2) There was significant damage or cost to consumers, the State or other insurance entities as a result of the violation.

(f) Repeated or multiple violations of this part shall constitute separate violations subject to penalty.

Table 303-1 Disclosure Statement for Policy with an

Additional First Year Premium

You are invited to determine if your needs for a life insurance program can be adequately served by the (insert policy description) life policy being proposed. Note that this policy is designed to provide individuals with an incentive to maintain the policy in force for at least 10 full years. Conversely, it may be said that the policy design includes disincentives or penalties for individuals who lapse the policy prior to the 10 anniversary.

The premium payable in the first year is $___________ , and the premium payable in years two through ten is $___________.

The difference between these amounts, $___________, is the additional first year premium.

The cash values payable at the end of policy years one through ten under this policy are:

Policy Year Cash Value

1 $ _________________

2 $ _________________

3 $ _________________

4 $ _________________

5 $ _________________

6 $ _________________

7 $ _________________

8 $ _________________

9 $ _________________

10 $ _________________

If you choose to terminate this policy, only the cash value, less any policy loans, will be paid to you.

*Optional Benefits Included:

Premium Years Payable

Waiver of Premium $ _________ __________

Accidental Death Indemnity $ _________ __________

$ _________ __________

Policy options at the end of the 10th policy year are:

(a) Continue in 11th year as whole life policy

(b) Renew MPWL for second ten years

(c) Convert to decreasing term to 100

If the person insured or policyowner does not elect an option, the terms of the policy designate option no. ______ above as the automatic option.

The following is a brief outline of each option listed above:

Option 1. Continue as whole life insurance $ __________ face amount.

Premiums 11th year and thereafter $ __________

Cash values

10th year $ _________

15th year $ _________

20th year $ _________

Age 65 $ _________

Interest adjusted surrender cost ______%

10 years _____ 20 years _____

Disposition of pure endowment _____

Or tenth year cash value __________

Option 2. ** Renew MPWL for another 10 year $ __________

period for face amount.

* Premiums per year 11th through 20th year $ _________

** Additional first year premium 11th year $ _________

only

Ten year total premiums $ _________

Guaranteed cash value after 10 years $ _________

Interest adjusted surrender cost _________%

10 years ________ 20 years _________

Disposition of pure endowment or tenth

year cash value: $ _________

*Includes rider benefits

**Death benefit is increased by additional first year premium

Option 3. Convert to decreasing term to age $ _________

100 for face amount.

* Level premiums $ _________

Additional 11th year premium $ _________

Interest adjusted surrender cost %

10 years _________ 20 years _________

Disposition of pure endowment or tenth

year cash value: $ _________

You will have ten days from the day the (insert policy description) life policy is delivered to you to return it for cancellation. Should you elect to cancel, all premiums paid by you will be returned.

Insurance Company

________________________________________

(Insert Name)

Address:

________________________________________

Telephone No.

________________________________________

Agent's Signature

I acknowledge that I received a copy of this disclosure statement for policy with an additional first year premium on the date indicated below.

________________________________________

Applicant's Signature

________________________________________

Date

N.H. Admin. Code § Ins 303.06

#1900, eff 1-1-82; ss by #4287, eff 7-1-87; ss by #5657, eff 7-1-93; ss by #7015, INTERIM, eff 7-1-99, EXPIRED: 10-29-99

New. #7450, eff 2-16-01