Section 45-04-05-06 - Disclosure requirements In connection with any advertising, solicitation, negotiation, or procurement of a universal life insurance policy:
1. Any statement of policy cost factors or benefits must contain: a. The corresponding guaranteed policy cost factors or benefits, clearly identified. b. A statement explaining the nonguaranteed nature of any current interest rates, charges, or other fees applied to the policy, including the insurer's rights to alter any of these factors. c. Any limitations on the crediting of interest, including identification of those portions of the policy to which a specified interest rate shall be credited. (Note: Policy cost factors are those amounts which affect the price per thousand of life insurance coverage or other benefits. They include: interest, mortality, expense charges and fees, including any surrender or withdrawal charges, but not persistency assumptions.)
2. Any illustration of the policy value must be accompanied by the corresponding net cash surrender value. 3. Any statement regarding the crediting of a specific current interest rate must also contain the frequency and timing by which such rate is determined. 4. If any statement refers to the policy being interest-indexed, the index must be described. In addition, a description must be given of the frequency and timing of determining the interest rate and of any adjustments made to the index in arriving at the interest rate credited under the policy. 5. Any illustrated benefits based upon nonguaranteed interest, mortality, or expense factors must be accompanied by a statement indicating that these benefits are not guaranteed. 6. If the guaranteed cost factors or initial policy cost factor assumptions would result in policy values becoming exhausted prior to the policy's maturity date, such fact must be disclosed, including notice that coverage will terminate under such circumstances. N.D. Admin Code 45-04-05-06
Effective January 1, 1985.General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-30, 26.1-33