Current through December 12, 2024
Section 760 IAC 1-62-4 - General rules and prohibitionsAuthority: IC 27-1-3-7
Affected: IC 27-1-12-25; IC 27-4-1-4
Sec. 4.
(a) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this rule, be clearly labeled "life insurance illustration", and contain the following basic information: (2) Name and business address of producer or insurer's authorized representative, if any.(3) Name, age, and sex of proposed insured, except where a composite illustration is permitted under this rule.(4) Underwriting or rating classification upon which the illustration is based.(5) Generic name of 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 rule.(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 the fact.(8) Use the term "vanish" 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 current scale.Department of Insurance; 760 IAC 1-62-4; filed Sep 27, 1999, 9:00 a.m.: 23 IR 337, eff Jan 1, 2000; readopted filed Sep 25, 2006, 3:23 p.m.: 20061004-IR-760060200RFA; readopted filed Nov 21, 2012, 4:15 p.m.: 20121219-IR-760120454RFAReadopted filed Nov 13, 2018, 10:02 a.m.: 20181212-IR-760180372RFAReadopted filed 10/31/2024, 3:52 p.m.: 20241127-IR-760230814RFA