Weekly Tip: Amendments to The Individual Life Application Uniform Standards

 

Weekly Tips

Amendments to The Individual Life Application Uniform Standards

11/19/2014

The Individual Life Application Uniform Standards were amended as part of Phase 1 of the 5-Year Review and become effective for filing use on December 4th. In this week’s Weekly Tip we will provide you with some highlights regarding the recent changes.  As stated last week, the amendments are applicable to new forms. 

The first change can be found in Section 3. K(1)(b) Application Sections - - Agreements.  The amendments clarify that the application can specify that the prospective insured will notify the company of any changes in the answers given in the application between the time of application and delivery of the policy.  Additionally, language was added authorizing the company to obtain personal information on the applicant from a third party information provider, subject to disclosure of the nature of the information and acknowledgment that with respect to time limits in the authorizations, that the time limits comply with the laws of the state where the policy is delivered or issued for delivery. 

The second change can be found in Section 1.B Additional Submission Requirements - Variability of Information and in Section 3.K Application Sections - Agreements.  The revisions to the Variability of Information and Agreements provisions are to clarify that the application may include a variable acknowledgement of disclosures required under state and federal law. 

The third change can be found in Section 2.B General Form Requirements - Fairness.  The amendments in this section include two more common examples of prohibited application questions that the Insurance Compact Reviewers have seen on application submissions which could lead the applicant to make a diagnosis of a medical condition.

The fourth change can be found in Section 3.M Application Sections - Fraud Notice/Warning.  The amendments clarify that the specified warning is prescribed.

For more information on these clarifications, please refer to the Transmittal Memo for Amendments to Standards for Accelerated Death Benefits found on the Record. If you have any questions regarding the Uniform Standards or the amendments made to the Uniform Standards, please contact the Insurance Compact Office.