Multitrack Policies. For policies which allow a policyowner to change or convert the policy from one plan or .amount to another, the Policy Summary:
- 1) Shall display all indexes and other data assuming that the option is not exercised; and
- 2) May display all indexes and other data using a stated assumption about the exercise of the option.
COMMENT: An example of the type of policy subject to this subsection is adjustable life .
Model Regulation Service • January 1993
LIFE INSURANCE DISCLOSURE MODEL REGULATION
6. Multi-track plans:
- These policies allow the insured the option to increase or decrease the amount of insurance and to change or convert the plan of insurance.
- For these plans, I would calculate cost indexes based upon the assumption that the automatic option is exercised.
- However, I might make additional displays of cost indexes on other options provided I stated the assumptions that pertain to the exercise of the options.
-- WILLIAM T. TOZER
1981 - INDIVIDUAL LIFE INSURANCE COST DISCLOSURE ISSUES, Society of Actuaries