(a) An illustration used in the sale of a life insurance policy shall satisfy the
applicable requirements of this chapter, be clearly labeled “life insurance illustration,”
and include, but not be limited to, the following information:
(1) Name of insurer.
(2) Name and business address of producer or insurer's authorized representative,
(3) Name, age and sex of proposed insured, except where a composite illustration is
permitted under this chapter.
(4) Underwriting or rating classification upon which the illustration is based.
(5) Generic name of the policy, the company product name, if different, and form number.
(6) Initial death benefit.
(7) Dividend option election or application of nonguaranteed elements, if applicable.
(b) When using an illustration in the sale of a life insurance policy, an insurer
or its producers or other authorized representatives shall not do any of the following:
(1) Represent the policy as anything other than a life insurance policy.
(2) Use or describe nonguaranteed elements in a manner that is misleading or has the
capacity or tendency to mislead.
(3) State or imply that the payment or amount of nonguaranteed elements is guaranteed.
(4) Use an illustration that does not comply with the requirements of this chapter.
(5) Use an illustration that at any policy duration depicts policy performance more
favorable to the policy owner than that produced by the illustrated scale of the insurer
whose policy is being illustrated.
(6) Provide an applicant with an incomplete illustration.
(7) Represent in any way that premium payments will not be required for each year
of the policy in order to maintain the illustrated death benefits, unless that is
(8) Use the term “vanishing” or “vanishing premium,” or a similar term that implies
the policy becomes paid up, to describe a plan for using nonguaranteed elements to
pay a portion of future premiums.
(9) Except for policies that can never develop nonforfeiture values, use an illustration
that is “lapse-supported.”
(10) Use an illustration that is not “self-supporting.”
(c) If an interest rate used to determine the illustrated nonguaranteed elements is
shown, it shall not be greater than the earned interest rate underlying the disciplined
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