Illinois Administrative Code
Title 50 - INSURANCE
Part 1406 - INDIVIDUAL AND GROUP LIFE INSURANCE POLICY ILLUSTRATIONS
Section 1406.70 - General Rules and Prohibitions
Universal Citation: 50 IL Admin Code ยง 1406.70
Current through Register Vol. 48, No. 12, March 22, 2024
a) An illustration used in the sale of an individual or group life insurance policy shall satisfy the applicable requirements of this Part, be clearly labeled "Life Insurance Illustration" and contain the following basic information:
1) Name of insurer;
2) Name and business address of insurance
producer or insurer's authorized representative, if any;
3) Name, age and sex of proposed insured,
except where a composite illustration is permitted pursuant to this
Part;
4) Underwriting or rating
classification upon which the illustration is based;
5) Generic name of policy, the insurer
product name, if different, and form number;
6) Initial death benefit; and
7) Dividend option election or application of
non-guaranteed elements, if applicable.
b) When using an illustration in the sale of an individual or group life insurance policy, an insurer or its insurance producers or other authorized representatives shall not:
1) Represent the policy as anything other
than a life insurance policy;
2)
Use or describe non-guaranteed 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 non-guaranteed elements is guaranteed;
4) Use an illustration that does not comply
with the requirements of this Part;
5) Use an illustration that at any policy
duration depicts policy performance more favorable to the policyowner 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 non-guaranteed 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"; or
10) Use an
illustration that is not "self-supporting."
c) If an interest rate used to determine the illustrated non-guaranteed elements is shown, it shall not be greater than the earned interest rate underlying the disciplined current scale.
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