On Jul. 16, TAI FSC explained rules re non-participating life insurance.
TAI FSC, TAI Justice issued order for the interpretive rule regarding article 18 as well as 24 of Regulations governing pre-sale procedures for insurance products.
Follows TAI FSC Apr. 2024 proposed amendments re product development, #208196.
Interpretation
Applies to non-participating life insurance products as per the regulations.
Requires clear disclosure in sales documents, policy pages, and terms that the insurance policy is non-participating and does not include bonus distributions.
Prohibits emphasis on assumed interest rates and misleading comparisons with others.
Sales documents must disclose assumptions used in calculating surrender value; must specify initial, subsequent years' expense ratios, warn about termination penalties.
In addition, specifies that life insurance policies sold before 2003 must follow expense allocation as well as income distribution practices similar to non-participating policies.
