SECTION 365:10-5-84. Disclosure requirements

  In connection with any advertising, solicitation, negotiation, or procurement of a universal life insurance policy:

(1)   Statement of policy cost factors contents. Any statement of policy cost factors or benefits shall contain:

(A)   The corresponding guaranteed policy cost factors or benefits clearly identified.

(B)   A statement explaining the nonguaranteed nature of any current interest rates, charges, or other fees applied to the policy, including the insurer's rights to alter any of these factors.

(C)   Any limitations on the crediting of interest, including identification of those portions of the policy to which a specified interest rate shall be credited.

(2)   Illustration of policy value. Any illustration of the policy value shall be accompanied by the corresponding net cash surrender value.

(3)   Statement of current interest rates. Any statement regarding the crediting of a specific current interest rate shall also contain the frequency and timing by which such rate is determined.

(4)   Interest-indexed. If any statement refers to the policy being interest-indexed, the index shall be described. In addition, the description shall be given of the frequency and timing of determining the interest rate of any adjustments made in the index in arriving at the interest rate credited under the policy.

(5)   Nonguaranteed interest. Any illustrated benefits based upon nonguaranteed interest, mortality, or expense factors shall be accompanied by a statement indicating that these benefits are not guaranteed.

(6)   Guaranteed cost factors. If the guaranteed cost factors or initial policy cost factor or assumption will result in policy values becoming exhausted prior to the policy's maturity date, such fact shall be disclosed, including notice that coverage will terminate under such circumstances.