Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 13 - Solicitation and Sale of Specialty and Other Life Insurance and Annuities › Section 13-5 - Prohibited statements and sales practices

Current through July 10, 2024
Authority: IC
				  27-1-3-7
Affected: IC
				  27-4-1-4
Sec. 5.
No life insurance company and no agent, solicitor, broker, or
				  representative of such company shall, within this state:
(1) Make any statement or reference relating
				to the growth of the life insurance industry or to the tax status of life
				insurance companies in connection with any solicitation of an application for
				life insurance in a context which would reasonably be understood to interest a
				prospect in the purchase of shares of stock in an insurance company rather than
				in the purchase of a life insurance policy;
(2) Make any statement which reasonably gives
				rise to the inference that the insured or prospective insured will enjoy a
				status common to a stockholder or will acquire a stock ownership interest in
				the insurance company by virtue of purchasing the life insurance
				policy;
(3) Make any reference to
				or statement concerning a company's "Investment Department," "Insured
				Investment Department," or similar terminology in such a manner as to imply
				that the policy was sold or issued or is serviced by the investment department
				of the life insurance company;
(4)
				Make any statement or reference which would reasonably tend to imply that by
				purchasing a policy, the purchaser or prospective purchaser will become a
				member of a limited group of persons who may receive, in the payment of
				dividends, special advantages, benefits, or favored treatment unless such is
				specifically provided in the insurance contract; this clause has no relation or
				applicability to policies under which insured persons of one class of risk may
				receive dividends at a higher rate than persons of another class of
				risk;
(5) State or imply that only
				a limited number of persons, or limited class of persons, will be eligible to
				buy a particular kind of policy, unless such limitation is related to
				recognized underwriting practices and can be verified by the underwriting
				practices of the company;
(6) State
				or imply that policyholders who act as "centers of influence" for an insurance
				company will share, because of so acting, in the company's surplus earnings in
				some manner not available to other policyholders who are otherwise in the same
				class;
(7) State or imply that the
				principal amounts payable under coupons which may be attached to a life
				insurance policy represent interest, earnings, return on investment, or
				anything other than policy benefits, the cost of which is included in the total
				premium shown in the policy;
(8)
				Describe or refer to premium payments in language which states the payment is a
				"deposit," unless:
(a) the payment establishes
				a debtor-creditor relationship between the life insurance company and the
				policyholders and a showing is made as to when and how the deposit may be
				withdrawn; or
(b) the term is used
				in conjunction with the word "premium" or similar language in such a manner as
				to clearly indicate the true character of the payment;