Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 25 - LIFE AND ANNUITIES
Part 14 - Life Insurance Illustrations (230-RICR-20-25-14)
Section 230-RICR-20-25-14.6 - General Rules and Prohibitions

Universal Citation: 230 RI Code of Rules 20 25 14.6

Current through September 18, 2024

A. An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this regulation, be clearly labeled "life insurance illustration" and contain the following basic information:

1. Name of insurer;

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 regulation;

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; and

7. Dividend option election or application of non-guaranteed 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:

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 regulation;

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 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.

Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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