Revised Guidelines for Submission of Life Insurance Contracts That Provide Guaranteed Insurability Benefits Based Upon the Consumers Price Index

State of Mississippi Department of Insurance GEORGE DALE Commissioner WOOLEY D. BOX Deputy Commissioner [LOGO] December 16, 1980 1804 Walter Sillers Bldg P.O. Box 79 Jackson, Ms 39205 Telephone (601) 354-7711 BULLETIN NO. 2-80(A) RE: REVISED GUIDELINES FOR SUBMISSION OF LIFE INSURANCE CONTRACTS THAT PROVIDE GUARANTEED INSURABILITY BENEFITS BASED UPON THE CONSUMERS PRICE INDEX Contracts with a guaranteed insurability type provision with increased benefits based upon the "Consumers Price Index" will be considered, provided, the contract and the submission is in accordance with the following revised guidelines: Guideline One. (1) Each increase in benefits shall be at the option of the Owner. The right to exercise any option shall be independent of any previous option; however, evidence of insurability may be required by the insurer if the immediately preceding option was not exercised. Guideline Two. (2) Each contract shall contain a provision similar to the following: "If any alteration in the composition, base, or method of computation of the Consumers Price Index is introduced which shall render such Index inappropriate for this contract, or if the publication of the Index is discontinued, the Company reserves the right to choose what it believes to be an appropriate standard, published or unpublished, as a substitute for the Consumers Price Index subject to the approval of the Insurance Commissioner." Guideline Three. (3) At any time the benefits under the existing contract are increased the contract shall be modified by a legally executed endorsement. The endorsement shall specify the increased premium, benefits and nonforfeiture values, if any. A specimen of the endorsement form must be filed with the original submission. s Price Index subject to the approval of the Insurance Commissioner." Guideline Three. (3) At any time the benefits under the existing contract are increased the contract shall be modified by a legally executed endorsement. The endorsement shall specify the increased premium, benefits and nonforfeiture values, if any. A specimen of the endorsement form must be filed with the original submission. Guideline Four. (4) If the benefits of the existing contract are to be increased then the rate schedule applicable to the increase shall be given in the original contract. If, however, the increased benefits are to be covered by a new policy, the rate schedule may be shown in the original contract or the rates may be those in use by the Company at the date of issue of the new policy. Guideline Five. (5) All submissions of this type policy shall be accompanied by a statement that the guidelines of this bulletin have been reviewed and that the submission is in compliance with these guidelines. George Dale Commissioner of Insurance