Ill. Admin. Code tit. 50, § 1705.20 - Construction of Life Certificate Forms
a)
1)
Fraternal Benefit Societies "Societies" may issue certificates providing for
the payment of death benefits as authorized by the Code.
2) Section 288(1) of the Illinois Insurance
Code, insofar as it authorizes additional benefits, permits Societies to
provide in the life certificate, or supplemental thereto, for the following:
A) Additional accidental death
benefits;
B) Waiver of premium
disability benefits due to accident or sickness;
C) Benefits or an annuity in case a member
becomes totally and permanently disabled from accident or sickness; without
including Accident and Health Policy Provisions required by Section
357.1 et
seq. of the Code (Ill. Rev. Stat. 1981, ch. 73, par. 969.1 ). All other
accident and health benefits included in the life certificates or supplemental
thereto must conform to Article XX of the Code and of Department Rules and
Regulations pertaining to construction and filing of accident and health forms,
in the same manner as though those benefits were provided under separate
certificates.
b) If the Director finds that the interests
of present and future certificate holders of a Society are not adversely
affected, he may authorize the Society to use the Commissioners' 1958 Standard
Ordinary Mortality Table for ordinary insurance, and a rate of interest not to
exceed 31/2 percent per annum for calculating reserves and nonforfeiture
values, if:
1) The Society files with the
Department comparative figures showing the attained age and the actual
mortality loss for the previous two years together with expected losses on the
mortality table then in use and on the Commissioners' 1958 Standard Ordinary
Mortality Table. This information will be acceptable if set out in five year
age groups.
2) Notice of Election
by the Society to comply with Section 229.2 of the Code (Ill. Rev. Stat. 1981,
ch. 73, par. 841.2 ) after a certain specified date, must be in the form of a
certified copy of the Resolution of the governing body, or the Board of
Directors authorizing such Election.
3) Basis of reserves should be stated in the
certificate.
4) The following,
which may be in substance, must be in the certificate: "The reserve and
nonforfeiture values under this certificate are not less than the minimum
values required by the Standard Nonforfeiture laws as adopted by the State of
Illinois for use by legal reserve life insurance policies."
5) After the date selected, all certificates
issued by the Society must be on the Commissioners' 1958 Standard Ordinary
Mortality Table.
6) Sections 229.2
and 229.3 and other applicable provisions of the Code must be complied
with.
Notes
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