760 Ind. Admin. Code 1-48-2

Current through December 12, 2024

Section 760 IAC 1-48-2 - Definitions

Authority: IC 27-1-3-7

Affected: IC 27-1-12

Sec. 2.

(a) As used in this rule, "accelerated benefits" refers to those benefits under a life insurance contract that:

(1) are payable to a policy owner or certificate holder, during the lifetime of the insured, in anticipation of death or upon the occurrence of specified life threatening or catastrophic conditions as defined by the policy or rider;

(2) reduce the death benefit otherwise payable under the life insurance contract; and

(3) are payable upon the occurrence of a single qualifying event that results in the payment of a benefit amount fixed at the time of acceleration.

(b) As used in this rule, "qualifying event" means one (1) or more of the following:

(1) A medical condition that would result in a drastically limited life span as specified in the contract, for example, twenty-four (24) months or less.

(2) A medical condition that has required or requires extraordinary medical intervention, such as, but not limited to, major organ transplant or continuous artificial life support, without which the insured would die.

(3) Any condition that usually requires continuous confinement in an eligible institution as defined in the contract if the insured is expected to remain there for the rest of his or her life.

(4) A medical condition which would, in the absence of extensive or extraordinary medical treatment, result in a drastically limited life span, such as, but not limited to, one (1) or more of the following:

(A) Coronary artery disease resulting in an acute infarction or requiring surgery.

(B) Permanent neurological deficit resulting from cerebral vascular accident.

(C) End stage renal failure.

(D) Acquired immune deficiency syndrome.

(E) Other medical conditions which the commissioner of the department of insurance may approve for any particular filing.

(5) Other qualifying events that the commissioner of the department of insurance may approve for any particular filing.

760 IAC 1-48-2

Department of Insurance; 760 IAC 1-48-2; filed Feb 23, 1993, 5:00 p.m.: 16 IR 1821; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 531; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed November 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFA

Readopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA