The National Association of Insurance Commissioners (NAIC)has drafted a "Life Insurance Policy Illustration" model law that most states have adopted.Which of the following statements concerning this model law is (are)true?
I.The policy illustration must include a narrative summary describing the basic characteristics of the policy.
II.The policy illustration must include a numeric summary showing the premium outlay,the value of the accumulation account,the cash surrender value,and the death benefit.

Question

Quizplus · Accepted Answer

Both statements are true. The NAIC's "Life Insurance Policy Illustration" model law requires both a narrative summary and a numeric summary in the policy illustration. The narrative summary should provide a brief description of the policy, including the death benefit, premium outlay, surrender values, and other important policy features. The numeric summary should show the policy values for selected policy years, and must include the premium outlay, accumulation account values, cash surrender value, and death benefit.

The National Association of Insurance Commissioners (NAIC)has Drafted a "Life