(a) An insurer shall include the following information in or with the outline of coverage:
(1) A graphic comparison of the benefit levels of a policy that increases benefits at a compounded annual rate of not less than 5 percent over the policy period with a policy that does not increase benefits. The graphic comparison shall show benefit levels over at least a 20-year period.
(2) Any expected premium increases or additional premiums to pay for automatic or optional benefit increases.
(b) An insurer may use a reasonable hypothetical or graphic demonstration for purposes of this disclosure.
(Added by Stats. 1997, Ch. 699, Sec. 22. Effective October 6, 1997.)
Last modified: October 25, 2018