Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 21 - TRADE PRACTICES
Subchapter N - LIFE INSURANCE ILLUSTRATIONS
Section 21.2209 - Delivery of Illustration and Record Retention
Universal Citation: 28 TX Admin Code § 21.2209
Current through Reg. 50, No. 13; March 28, 2025
(a) Illustration delivery provisions. An illustration or revised illustration shall be delivered by the insurer as set out in paragraphs (1)-(5) of this subsection.
(1) Basic illustration delivery. If a basic
illustration is used by an insurance producer or other authorized
representative of the insurer in the sale of a life insurance policy, and the
policy is applied for as illustrated, a copy of that illustration signed in
accordance with this rule shall be submitted to the insurer at the time of
policy application. A copy also shall be provided to the applicant.
(2) Revised illustration delivery. If the
policy is issued other than as applied for, a revised basic illustration
conforming to the policy as issued shall be sent with the policy. The revised
illustration shall conform to the requirements of this subchapter, shall be
labeled "Revised Illustration," and shall be signed and dated by the applicant
or policy owner and insurance producer or other authorized representative of
the insurer no later than the time the policy is delivered. A copy shall be
provided to the insurer and the policy owner.
(3) Certification required where no
illustration is used. If no illustration is used by an insurance producer or
other authorized representative of the insurer in the sale of a life insurance
policy or if the policy is applied for other than as illustrated, the insurance
producer, other authorized representative of the insurer, or insurer shall
certify to that effect in writing on a form provided by the insurer. On the
same form the applicant shall acknowledge that no illustration conforming to
the policy applied for was provided and shall further acknowledge an
understanding that an illustration conforming to the policy as issued will be
provided no later than at the time of policy delivery. This form shall be
submitted to the insurer at the time of policy application.
(4) Illustration to be provided with policy.
If the policy is issued under facts and circumstances described in paragraph
(3) of this subsection, a basic illustration conforming to the policy as issued
shall be sent with the policy. A copy shall be provided to the insurer and the
policy owner.
(5) Proof of
illustration delivery by mail. If a basic illustration or revised illustration
is sent to the applicant or policy owner by mail from an insurance producer,
other authorized representative of an insurer, or the insurer itself, it shall
include instructions for the applicant or policy owner to sign the duplicate
copy of the numeric summary page of the illustration for the policy issued or
applied for and return the signed copy to the insurer. The insurer's obligation
under this subsection shall be satisfied if the insurer can demonstrate that
the insurance producer, other authorized representative of the insurer, or the
insurer itself has made a diligent effort to secure a signed copy of the
numeric summary page. The requirement to make a diligent effort shall be deemed
satisfied if the insurance producer, other authorized representative of the
insurer, or insurer includes in the mailing a self-addressed postage prepaid
envelope with instructions for the return of the signed numeric summary
page.
(b) Records retention. As applicable, a copy of the basic illustration, a revised basic illustration, and/or a signed numeric summary page, along with any certification that either no illustration was used or that the policy was applied for other than as illustrated, shall be retained by the insurer until three years after the policy is no longer in force. A copy of such records need not be retained if no policy is issued.
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