“Buyer’s Guide” means a document that contains, and is limited to, the wording contained in Exhibit 1 or other wording approved by the Director.

(2)

“Cash Dividend” means the currently illustrated dividend that can be applied toward payment of the gross premium.

(3)

“Equivalent Level Annual Dividend” means the amount calculated by the following steps:

(a)

Accumulate the annual cash dividends at five percent interest, compounded annually, to the ends of the 10th and 20th policy years;

(b)

Divide each accumulation of step (a) by an interest factor that converts it into the equivalent level annual amount that, if paid at the beginning of each year, would accumulate to the value in step (a) over the respective period. If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719;

(c)

Divide the results of step (b) by the number of thousands of the Equivalent Level Death Benefit to arrive at the Equivalent Level Annual Dividend for each of the respective periods.

(4)

“Equivalent Level Death Benefit” of a policy or term life insurance rider means the amount calculated by the following steps:

(a)

Accumulate the guaranteed amount, that does not depend on the cause of death, payable upon death at the beginning of each policy year for 10 and 20 years at five percent interest, com-pounded annually, to the ends of the 10th and 20th policy years respectively;

(b)

Divide each accumulation of step (a) by an interest factor that converts it into the equivalent level annual amount that, if paid at the beginning of each year, would accumulate to the value in step (a) over the respective period. If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719.

(5)

“Generic Name” means a short title that is descriptive of the premium and benefit patterns of a policy or a rider.

(6)

“Life Insurance Net Payment Cost Index” means the amount calculated in the same manner as the Life Insurance Surrender Cost Index except that the cash surrender value and any terminal dividend are set at zero.

(7)

“Life Insurance Surrender Cost Index” means the amount calculated by the following steps:

(a)

Determine the guaranteed cash surrender value, if any, available at the ends of the 10th and 20th policy years;

(b)

For participating policies, add to the respective amount determined in step (a) the accumulation of the annual Cash Dividends at five percent interest, compounded annually, to the end of the period selected, and the respective terminal dividend, if any, payable upon surrender;

(c)

Divide the result of step (b), or step (a) for guaranteed cost policies, by an interest factor that converts it into the equivalent level annual amount that, if paid at the beginning of each year, would accumulate to the value in step (b), or step (a) for guaranteed cost policies, over the period selected. If the period is 10 years, the factor is 13.207 and if the period is 20 years, the factor is 34.719;

(d)

Determine the equivalent level annual premium for each of the respective periods in step (a) by accumulating each annual premium payable for the basic policy or rider at five percent interest, compounded annually, to the end of the respective period and dividing the result by the respective period factor stated in step (c). (For a level premium plan, the result of this step equals the annual premium.);

(e)

Subtract the result of step (c) from the result of step (d);

(f)

Divide the result of step (e) by the number of thousands of the Equivalent Level Death Benefit to arrive at the Life Insurance Surrender Cost Index.

(8)

“Policy Summary” means a written statement describing the elements of the policy, including but not limited to items in subsections (a) to (k) of this section. The Policy Summary is a separate document. All information must be set out in such a manner as not to minimize or obscure any portion. Any amounts that remain level for two or more years of the policy may be represented by a single number if it is clearly indicated which amounts are applicable for each policy year. If more than one insured is covered under the policy or a rider, guaranteed death benefits shall be displayed separately for each insured, or for each class of insureds if death benefits do not differ within the class. Zero amounts shall be expressed rather than being represented by a blank space:

(a)

A prominently placed title as follows: STATEMENT OF POLICY COST AND BENEFIT INFORMATION;

(b)

The name and address of the insurance producer or, if no insurance producer is involved, a statement of the procedure to be followed in order to receive responses to inquiries regarding the Policy Summary;

(c)

The full name and home office or administrative office address of the insurer in which the life insurance policy is to be or has been written;

(d)

The Generic Name of the basic policy and each policy rider;

(e)

The following amounts, where applicable, on a total basis rather than on a per thousand or a per unit basis, for the first five policy years and representative policy years thereafter sufficient to clearly illustrate the premium and benefit patterns, including, but not necessarily limited to, the years for which Life Insurance Net Payment or Surrender Cost Indexes are displayed and at least one age from 60 through 65 or policy maturity, whichever is earlier:

(A)

Annual premium for the basic policy;

(B)

Annual premium for each optional rider;

(C)

Guaranteed amount payable upon death at the beginning of the policy year, without regard to the cause of death other than suicide and other specific exclusions, that is provided by the basic policy and each optional rider, with benefits provided under the basic policy and each rider shown separately;

(D)

Total guaranteed cash surrender values at the end of the year, with values shown separately for the basic policy and each optional rider;

(E)

Cash Dividends payable at the end of the year, with values shown separately for the basic policy and each optional rider. (Dividends need not be displayed beyond the 20th policy year.);

(F)

Guaranteed endowment amounts payable under the policy that are not included under guaranteed cash surrender values above.

(f)

If the policy contains a loan provision, the effective policy loan interest rate and the annual percentage interest rate applied in advance or in arrears, whichever is specified. If the policy loan interest rate is variable, the Policy Summary shall include the maximum effective and annual percentage rates;

(g)

Life Insurance Net Payment and Surrender Cost Indexes for 10 and 20 years but in no case beyond the premium-paying period. Separate Indexes shall be displayed for the basic policy and for each optional term life insurance rider. The Indexes need not be included for optional riders that are limited to such benefits as accidental death benefits, disability waiver of premium, preliminary term life insurance coverage of less than 12 months and guaranteed insurability benefits, nor for a basic policy or optional rider covering more than one life;

(h)

The Equivalent Level Annual Dividend, in the case of participating policies and participating optional term life insurance riders, under the same circumstances and for the same durations for which Life Insurance Net Payment and Surrender Cost Indexes are displayed;

(i)

A statement, in the case of a Policy Summary that shows dividends, that dividends are based on the insurer’s current dividend scale and are not guaranteed, and a statement in close proximity to the Equivalent Level Annual Dividend as follows: “An explanation of the intended use of the Equivalent Level Annual Dividend is included in the Life Insurance Buyer’s Guide”;

(j)

A statement in close proximity to the Life Insurance Net Cost and Surrender Cost Indexes as follows: “An explanation of the intended use of these Indexes is provided in the Life Insurance Buyer’s Guide”;