Ga. Comp. R. & Regs. R. 120-2-10-.02 - Coupon Policies or Policies with Annual Pure Endowment Benefits

(1) No policy containing pure endowment benefits during the premium paying period (whether or not evidenced by coupons, passbooks, or other devices generally identified with savings, banking or investment institutions), shall be sold or approved for sale in Georgia on or after November 1, 1967 unless it meets the following requirements:

(a) Contains, clearly and prominently displayed in the proximity to the language used to set forth the consideration for the policy contract, the following statement or similar wording approved by the Commissioner, "the premium shown includes an additional annual (semi-annual, quarterly, monthly, weekly, etc.) premium of $________ for coupon (or pure endowment, whichever is applicable) benefits", inserting in the blank space the said additional premium.

(b) Payment of any annual pure endowment benefits shall not be made contingent upon the payment of premiums falling due on or after the time the annual pure endowment benefit has matured.

(c) The amount of each of the pure endowment benefits shall be expressed in dollar amounts and not as a "percentage" of any premium or benefit.

(d) No annual pure endowment shall be described as being a guaranteed dividend, nor as earning on the premium investment.

(e) The language and terminology of a policy which has pure endowment benefits therein shall not purport to represent the pure endowment benefit or benefits to be anything other than guaranteed insurance benefits for which premium is being paid by the policyholder.

(2) This section shall not apply to Educational Endowment-type policies in which the amounts of annual pure endowments, payable during the endowment period, are greater than the annual premiums for the respective years in which such endowments are paid.

Notes

Ga. Comp. R. & Regs. R. 120-2-10-.02

O.C.G.A. Sec. 33-2-9.

Original Rule entitled "Coupon Policies" was filed and effective on July 20, 1965. Amended: Rule repealed and a new Rule entitled "Coupon Policies or Policies with Annual Endowment Benefits" adopted. Filed November 13, 1967; effective November 1, 1967. Repealed: New Rule of same title adopted. F. Aug. 24, 1989; eff. Jan. 1, 1990, as specified by the Agency.