Posted: | March 8, 2013 03:26 PM |
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From: | Representative Steven J. Santarsiero |
To: | All House members |
Subject: | Santarsiero-Reintroduction of HB 1308 of 2011-Small Face Amount Life Insurance Policies Act |
In the near future, I will reintroduce former HB 1308 of 2011 that will establish the Consumer Education in Small Face Amount Life Insurance Policies Act. The purpose of this act is to establish rules that ensure meaningful information is provided to the purchasers of small face amount policies. The act defines a small face amount policy as a life insurance policy or certificate with an initial face amount of $15,000 or less. The small face amount applies to group and individual life insurance policies and certificates except: (1) variable life insurance; (2) individual and group annuity contracts; (3) credit life insurance; (4) policies and certificates where an illustration has been provided; (5) group or individual policies of life insurance issued to members of an employer group or other permitted group under certain circumstances. Insurers who issue a policy where over the term of the policy, premiums may exceed the face amount of the policy will perform the following duties:
Under my legislation, insurers and producers (i.e. insurance agents or brokers) will be required to provide information to policyholders or certificate holders that ask questions about the disclosure statement. |
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View Attachment |
Introduced as HB1320