N.J. Admin. Code § 11:4-30.9

Current through Register Vol. 56, No. 24, December 18, 2024

Section 11:4-30.9 - Exercise of the option to accelerate the payment of death benefits

(a) When a partial amount of the death benefit is accelerated:

1. The policy or group certificate shall be modified by an endorsement which includes a statement of cash values, policy loans, premiums and death benefits following acceleration.

2. The dividends or non-guaranteed elements credited thereon shall not discriminate between policies or certificates whose death benefits have been reduced through acceleration and policies or certificates originally issued in the amount of the reduced death benefits.

3. The accidental death benefit provision, if any, in the policy or certificate shall not be affected by the payment of the accelerated death benefit.

(b) When the full amount of the death benefit is accelerated, the policy or certificate shall terminate upon the election of acceleration of the benefit.

(c) The accelerated death benefit provision shall be incontestable on the same, or a more favorable, basis as the policy or the group certificate.

N.J. Admin. Code § 11:4-30.9

Amended by R.2012 d.096, effective 5/7/2012.
See: 43 N.J.R. 3119(a), 44 N.J.R. 1531(a).
In the introductory paragraph of (a), substituted "partial amount of the death benefit is accelerated" for "portion of the coverage remains after payment of the accelerated death benefit, the following requirements apply"; in (a)1, substituted "The" for "Where the accelerated death benefit is paid under the partial surrender method, the individual"; in (a)2, inserted "or certificates" twice; in (a)3, substituted "certificate" for "rider"; in (b), deleted "individual" preceding and "life insurance evidenced by the group" following "policy or"; and in (c), substituted "accelerated death benefit provision" for "option to accelerate" and deleted "individual" preceding and "or rider" following "policy".