Kansas Administrative Regulations

Agency 40. Insurance Department

Article 2. Life Insurance

40-2-25 Life insurance illustrations.

The national association of insurance commissioners' ``life insurance illustrations model regulation,'' January 1996 edition, is hereby adopted by reference, subject to the following alterations.

 (a)  Section 3(E) shall be inserted and shall read as follows:

”If a policy change requiring underwriting or a sales effort is made to a policy issued prior to the effective date of this regulation and that policy change involves use of a presentation or depiction that includes non-guaranteed elements of that policy of life insurance over a period of years, the scale used in the presentation or depiction shall not be greater than the currently payable scale for that block of business. If no presentation or depiction of non-guaranteed elements is used for such policy change, the producer or representative shall certify to that effect in writing on a form provided by the insurer. On the same form, the policyowner shall acknowledge that presentation or depiction was not used.''

(b)  The text of Section 10(A)(1)(g) shall be deleted, and the following new language shall be inserted in its place:

”The projected termination date of the policy, based on guaranteed assumptions:

 For fixed premium policies, this date is when the policy's net cash surrender value is such that it would not maintain the insurance in force, assuming guaranteed interest, mortality and expense loads, and continued scheduled premiums; or

 For flexible premium policies, this date is when the policy's net cash surrender value is such that it would not maintain the insurance in force, assuming guaranteed interest, mortality and expense loads, and no further premium payments.''

(c)  Section 10(A)(1)(h) shall be deleted.

(Authorized by K.S.A. 40-103, 40-2401, et seq.; implementing K.S.A. 40-103, 40-2401, et seq.; effective Dec. 29, 1997; amended Oct. 23, 1998.)