N.J. Admin. Code § 11:4-41.9

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

Section 11:4-41.9 - Standards for other insured coverage

(a) The following standards shall apply to other insured coverage, which provides coverage to an insured other than the policy's primary insured:

1. The form shall clearly describe what happens to the insurance on the other insured upon the death of the primary insured.

2. If coverage on the other insured terminates upon the death of the primary insured, then the form shall provide for the return of the unearned premium (or cost of insurance). Alternatively, the form may continue coverage on the other insured for the remainder of the period purchased by the premium (or cost of insurance).

3. The form may continue the coverage on the other insured by waiver of premium (or cost of insurance).

4. The form may continue the coverage on the other insured through paid-up term insurance. In such a case, the form shall include the following:

i. A description of the basis for calculating the cash value of such paid-up insurance;

ii. A statement that the paid-up insurance may be surrendered at any time for its cash value; and

iii. A statement that if the paid-up insurance is surrendered within 30 days after a policy anniversary, the value available shall not be less than the anniversary value.

5. The form may continue coverage on the other insured as paid-up term insurance evidenced by a separate policy to be issued by the insurer.

N.J. Admin. Code § 11:4-41.9

Recodified from N.J.A.C. 11:4-41.11 by R.2000 d.130, effective 3/20/2000.
See: 31 New Jersey Register 3910(a), 32 New Jersey Register 1024(a).
Former N.J.A.C. 11:4-41.9, Standards for extension or cancellation of maturity dates, repealed.