Mandatory policy provisions

The policy shall provide the following: 1. Periodic disclosure to policyowner. The policy must provide that the policyowner will be sent, without charge, at least annually, a report which will serve to keep such policyowner advised as to the status of the policy. The end of the current report period must be not more than three months previous to the date of the mailing of the report. Specific requirements of this report are detailed in section 45-04-05-06. 2. Illustrative reports. The policy must provide for an illustrative report which will be sent to the policyowner upon request. Minimum requirements of such report are the same as those set forth in section 45-04-05-05. The insurer may charge the policyowner a reasonable fee for providing the report. 3. Policy guarantees. The policy must provide guarantees of minimum interest credits and maximum mortality and expense charges. All values and data shown in the policy must be based on guarantees. No figures based on nonguarantees may be included in the policy. 4. Calculation of cash surrender values. The policy must contain at least a general description of the calculation of cash surrender values including the following information: a. The guaranteed maximum expense charges and loads. b. Any limitation on the crediting of additional interest. Interest credits may not remain conditional for a period longer than twelve months. c. The guaranteed minimum rate or rates of interest. d. The guaranteed maximum mortality charges. e. Any other guaranteed charges. f. Any surrender or partial withdrawal charges. 5. Changes in basic coverage. If the policyowner has the right to change the basic coverage, any limitation on the amount or timing of such change must be stated in the policy. If the policyowner has the right to increase the basic coverage, the policy must state whether a new period of contestability, or suicide, or both, is applicable to the additional coverage. 6. Grace period and lapse. The policy must provide for written notice to be sent to the policyowner's last known address at least thirty days prior to termination of coverage. A flexible premium policy must provide for a grace period of at least thirty days (or as required by North Dakota law) after lapse. Unless otherwise defined in the policy, lapse occurs on that date on which the net cash surrender value first equals zero. 7. Misstatement of age or sex. If there is a misstatement of age or sex in the policy, the amount of the death benefit must be that which would be purchased by the most recent mortality charge at the correct age or sex. The commissioner may approve other methods which are deemed satisfactory. 8. Maturity date. If a policy provides for a "maturity date," "end date," or similar date, then the policy shall also contain a statement, in close proximity to that date, that it is possible that coverage may not continue to the maturity date even if scheduled premiums are paid in a timely manner, if such is the case.