Current through Register Vol. 63, No. 9, September 1, 2024
(1) An illustration used in the sale of a
life insurance policy shall satisfy the applicable requirements of OAR
836-051-0500 to
836-051-0600, be clearly labeled
"life insurance illustration" and contain the following basic information:
(a) Name of insurer;
(b) Name and business address of the
insurance producer, if any;
(c)
Name, age and sex of proposed insured, except when a composite illustration is
permitted under OAR 836-051-0500 to
836-051-0600;
(d) Underwriting or rating classification
upon which the illustration is based;
(e) Generic name of policy, the insurer
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, neither an insurer nor its insurance producer shall:
(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 OAR
836-051-0500 to
836-051-0600;
(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;" or
(j) Use an
illustration that is not "self-supporting."
(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.
Stat. Auth.: ORS
731.244 &
746.240
Stats. Implemented: ORS
746.075,
746.085,
746.100,
746.110 &
746.240
