NAIC Life and Health Insurance Policy Language Simplification Model Act (#575)

What this document is

NAIC Life and Health Insurance Policy Language Simplification Model Act (#575) is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 8

  “A policy form meeting the requirements of Section 5A shall be approved notwithstanding the provisions of any other laws which specify the content of policies, if the policy form provides the policyholders and claimants protection not less favorable than they would be entitled to under such laws.”

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 7

  “The commissioner may authorize a lower score than the Flesch reading ease score required in Section 5A(1) whenever, in his sole discretion, he finds that a lower score:”

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 5E

  “At the option of the insurer, riders, endorsements, applications and other forms made a part of the policy may be scored as separate forms or as part of the policy with which they may be used.”

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 5A(4)

  “It contains a table of contents or an index of the principal sections of the policy, if the policy has more than 3,000 words printed on three (3) or fewer pages of text, or if the policy has more than three (3) pages regardless of the number of words.”

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 5A(3)

  “(3) The style, arrangement and overall appearance of the policy give no undue prominence to any portion of the text of the policy or to any endorsements or riders;”

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 5B(6)(b)

  “(b) Any policy language which is drafted to conform to the requirements of any federal law, regulation or agency interpretation; any policy language required by any collectively bargained agreement; any medical terminology; any words which are defined in the policy; and any policy language required...”

• NAIC Life and Health Insurance Policy Language Simplification Model Act (#575), Section 9A

  “A. Except as provided in Section 4, this Act applies to all policy forms filed on or after [insert date 2 years after passage of Act]. No policy form shall be delivered or issued for delivery in this state on or after [insert date 5 years after passage of Act] unless approved by the commissioner or...”

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