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Name of Proposed Rule: Standards for Forms Used to Limit or Exclude Individual Disability Income Insurance Policy Coverage Based on the Underwriting Process

Subject Matter of Proposed Rule: The Standards for Forms Used to Limit or Exclude Individual Disability Income Insurance Policy Coverage Based on the Underwriting Process apply to provisions which limit or exclude policy coverage in individual disability income plans, buy-sell plans, key person plans or business overhead expense plans, when the limitations or exclusions are based on information disclosed by the insured in the application or identified for the insured during the underwriting process. Such provisions may be built into the disability income insurance policy or added to such policy by rider, endorsement or amendment. If after the policy date of issue a change in coverage would be subject to an underwriting limitation or exclusion, the limitation or exclusion applicable to the change in coverage may be added to the policy at the same time that the change in coverage is made to the policy. The use of such provisions shall be subject to the standards for Permissible Limitations or Exclusions Based on the Underwriting Process for Each Proposed Insured that have been approved for use with the policy with which the provisions may be used and the applicable law in the state where the policy is delivered or issued for delivery. As used in these standards, “disability income” means disability income plans, buy-sell plans, key person plans and business overhead expense plans that are individually underwritten, including such plans that are marketed through employer and association sponsored groups (“multi-life” plans), as applicable.

Citation to Published Notices: Notice of this rule was published on July 1, 2011

Name of persons requesting Public Hearing:

Date and Location of Public Hearing, if any: Monday, September 26, 2011 via conference call.

Status of Proposed Rule (including upcoming meetings): The Proposed Standards have been issued for notice and comment. Written comments will be accepted on the Proposed Standards until August 30, 2011. Written requests for a public hearing must be received no later than July 21, 2011.

Date Approved by Management Committee:  September 26, 2011

Date Adopted by Commission: September 26, 2011

Effective Date of Rule: January 11, 2012

Original Version: Standards for Forms Used to Limit or Exclude Individual Disability Income Insurance Policies Coverage based on the Underwriting Process

Memos from Product Standards Committee before recommendation:

Link to Comments submitted by members and the public:

States who have opted out of the Uniform Standards:

  • Connecticut
  • Montana