Iowa Administrative Code › Agency 191 - Insurance Division › Unfair Trade Practices › Chapter 14 - Life Insurance Illustrations Model Regulation › Rule 191-14.7 - Standards for Basic Illustrations

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Format.
A basic illustration shall conform with the following
				requirements:
a. The illustration shall be
				labeled with the date on which it was prepared.
b. Each page, including any explanatory notes
				or pages, shall be numbered and show its relationship to the total number of
				pages in the illustration (e.g., the fourth page of a seven-page illustration
				shall be labeled "page 4 of 7 pages").
c. The assumed dates of payment receipt and
				benefit payout within a policy year shall be clearly identified.
d. If the age of the proposed insured is
				shown as a component of the tabular detail, it shall be issue age plus the
				numbers of years the policy is assumed to have been in force.
e. The assumed payments on which the
				illustrated benefits and values are based shall be identified as premium outlay
				or contract premium, as applicable. For policies that do not require a specific
				contract premium, the illustrated payments shall be identified as premium
				outlay.
f. Guaranteed death
				benefits and values available upon surrender, if any, for the illustrated
				premium outlay or contract premium shall be shown and clearly labeled
				guaranteed.
g. If the illustration
				shows any nonguaranteed elements, they cannot be based on a scale more
				favorable to the policyowner than the insurer's illustrated scale at any
				duration. These elements shall be clearly labeled nonguaranteed.
h. The guaranteed elements, if any, shall be
				shown before corresponding nonguaranteed elements and shall be specifically
				referred to on any page of an illustration that shows or describes only the
				nonguaranteed elements (e.g., "see page 1 for guaranteed elements").
i. The account or accumulation value of a
				policy, if shown, shall be identified by the name this value is given in the
				policy being illustrated and shown in close proximity to the corresponding
				value available upon surrender.
j.
				The value available upon surrender shall be identified by the name this value
				is given in the policy being illustrated and shall be the amount available to
				the policyowner in a lump sum after deduction of surrender charges, policy
				loans and policy loan interest, as applicable.
k. Illustrations may show policy benefits and
				values in graphic or chart form in addition to the tabular form.
l. Any illustration of nonguaranteed elements
				shall be accompanied by a statement indicating that:
(1) The benefits and values are not
				guaranteed;
(2) The assumptions on
				which they are based are subject to change by the insurer; and
(3) Actual results may be more or less
				favorable.
m. If the
				illustration shows that the premium payer may have the option to allow policy
				charges to be paid using nonguaranteed values, the illustration must clearly
				disclose that a charge continues to be required and that, depending on actual
				results, the premium payer may need to continue or resume premium outlays.
				Similar disclosure shall be made for premium outlay of lesser amounts or
				shorter durations than the contract premium. If a contract premium is due, the
				premium outlay display shall not be left blank or show zero unless accompanied
				by an asterisk or similar mark to draw attention to the fact that the policy is
				not paid up.
n. If the applicant
				plans to use dividends or policy values, guaranteed or nonguaranteed, to pay
				all or a portion of the contract premium or policy charges, or for any other
				purpose, the illustration may reflect those plans and the impact on future
				policy benefits and values.