N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 53-2.3

Current through Register Vol. 46, No. 45, November 2, 2024

Section 53-2.3 - Additional disclosure rules for graded death benefit life insurance issued between ages 50 and 75

(a) Preliminary information.

(1) The prospective purchaser shall be provided with a prominent notice either on the application or with the application in the following form or in a form containing substantially similar information approved by the superintendent:

"Since this policy is issued with minimal or no medical underwriting, the premium rate charged includes an extra mortality risk charge. If you are healthy enough to qualify as a "standard" risk, premiums would likely have been lower if you had applied for a fully underwritten policy."

(2) Such prominent notice may be included as part of a sales illustration summary, if such summary is adopted by the insurer as the preliminary information.

(b) Policy summary.

(1) The policy summary shall include a comparison of the total aggregate of premiums payable and death benefits payable for the first seven policy years, 10th and 20th policy year.

(2) The policy summary form shall include a prominent notice in the following form or in a substantially similar form approved by the superintendent:

"This is a policy issued on the basis of minimal or no underwriting. The premium charged includes an extra mortality charge. If you are healthy enough to qualify for a "standard" life insurance policy, your premiums would likely have been lower if you had applied for a fully underwritten policy. You should carefully review this document to make sure the policy is suitable for you. If you are not entirely satisfied, please review the cancellation provision in the policy for directions on obtaining a refund of any premiums paid."

N.Y. Comp. Codes R. & Regs. Tit. 11 §§ 53-2.3