N.J. Admin. Code § 11:4-41.12

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

Section 11:4-41.12 - Standards for custom design products

(a) Pursuant to (b) below, the Department shall permit the use of a single policy form to provide more than one product where there are alternative plans. The submission shall include specimen issues of the schedule pages and any related tables of values for each alternative plan.

(b) The use of single policy forms to provide more than one product shall be permitted under the following circumstances:

1. Whole life coverage where the only difference is the length of the premium paying period.

2. Decreasing term plans where the only difference is the length of the term period. The Department shall permit different amortization schedules to be used with each term period.

3. Level term plans where the only difference is the length of the term.

4. Other alternative plans that are substantially similar in product design to the primary plan submitted. Determination of substantial similarity shall be within the sole discretion of the Commissioner.

(c) The use of single policy forms to provide more than one product shall not be permitted under the following circumstances:

1. A policy form may not be issued as both a single premium plan and a multiple premium plan.

2. A policy form may not be issued both for plans which are exempt from providing cash values under the Standard Nonforfeiture Law (N.J.S.A. 17B:25-19) and for plans which are required to provide cash values.

3. A policy form providing term coverage may not be issued for separate plans providing a level death benefit or a non-level death benefit.

4. A policy form may not be issued as both a single life plan and a multiple life plan.

5. A policy form may not be issued as both a first-to-die and a survivorship plan.

6. A policy form may not be issued both with and without a re-entry or requalification provision.

7. A policy form may not be issued both with and without a minimum premium period.

8. A policy form may not be issued by an agent in the field and by the home office.

9. A policy form may not be issued both as a renewable and nonrenewable term plan.

N.J. Admin. Code § 11:4-41.12

Recodified from N.J.A.C. 11:4-41.15 and amended by R.2000 d.130, effective 3/20/2000.
See: 31 New Jersey Register 3910(a), 32 New Jersey Register 1024(a).
Rewrote (a); in (b), added 4; and in (c), deleted former 2 and 3, recodified former 4 through 8 as 2 through 6, recodified former 9 as 7 and deleted ", or for minimum premium periods of different durations" at the end, deleted a former 10, and recodified former 11 and 12 as 8 and 9. Former N.J.A.C. 11:4-41.12, Standards for designated life options, repealed.