NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605)

What this document is

NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605) 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 Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 5

  “The insurer and its producers shall have a duty to provide information to policyholders or certificate holders that ask questions about the disclosure statement.”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 4.B

  “B. If an insurer is required to provide a disclosure under Subsection A of this section, the insurer shall clearly and prominently disclose, on or before policy delivery, available premium payment plan and product alternatives. If no alternatives exist, the insurer shall clearly and prominently...”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 3.D

  “D. Group or individual policies of life insurance issued to members of an employer group or other permitted group where: (1) Every plan of coverage was selected by the employer or other group representative; (2) Some portion of the premium is paid by the group or through payroll deduction; and (3)...”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 4.A

  “A. An insurer issuing a small face amount policy, where over the term of the policy the cumulative policy premiums paid may exceed the face amount of the policy, shall clearly and prominently disclose, on or before policy delivery, the length of time until the cumulative policy premiums paid may...”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 3

  “This Act applies to all group and individual life insurance policies and certificates except: A. Variable life insurance; B. Individual and group annuity contracts; C. Credit life insurance;”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 6

  “This Act shall become effective [insert date] and shall apply to insurance policies and certificates issued on or after the effective date.”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 2

  ““Small face amount policy” means a life insurance policy or certificate with an initial face amount of $15,000 or less.”

• NAIC Disclosure for Small Face Amount Life Insurance Policies Model Act (#605), Section 4.C

  “C. Cumulative premiums shall include premiums paid for riders. However, the face amount shall not include the benefit attributable to the riders.”

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