Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 28.00 - Life Insurance Illustrations
Section 28.06 - General Rules and Prohibitions
Universal Citation: 211 MA Code of Regs 211.28
Current through Register 1531, September 27, 2024
(1) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of 211 CMR 28.00, be clearly labeled "life insurance illustration" and contain the following basic information:
(a) Name of insurer;
(b) Name and business address of insurance
producer or insurer's authorized representative, if any;
(c) Name, age and sex of proposed insured,
except where a composite illustration is permitted under
211
CMR 28.00;
(d) Underwriting or rating classification
upon which the illustration is based;
(e) Generic name of policy, the company
product name, if different, and form number;
(f) Initial death benefit; and
(g) Dividend option election or application
of non-guaranteed elements, if applicable.
(2) When using an illustration in the sale of a life insurance policy, an insurer or its insurance producers or other authorized representatives shall not:
(a)
Represent the policy as anything other than a life insurance policy;
(b) Use or describe non-guaranteed elements
in a manner that is misleading or has the capacity or tendency to
mislead;
(c) State or imply that
the payment or amount of non-guaranteed elements is guaranteed;
(d) Use an illustration that does not comply
with the requirements of
211
CMR 28.00;
(e) 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;
(f) Provide an
applicant with an incomplete illustration;
(g) 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;
(h) 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 ;
(i) Except for policies
that can never develop nonforfeiture values, use an illustration that is
"lapse-supported";
(j) Use an
illustration that is not "self-supporting"; and
(k) Unless otherwise required, disclosure
statements made in an illustration shall not be made in footer or in font size
smaller than the font of the primary text.
(3) 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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