Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 72 - LIFE INSURANCE ILLUSTRATIONS REGULATION › Section 210-72-007 - Standards for Basic Illustrations

Current through June 17, 2024
007.01 Format
A basic illustration shall conform with the following
				  requirements:
007.01(1) The
				illustration shall be labeled with the date on which it was prepared.
007.01(2) 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").
007.01(3) The assumed dates of payment
				receipt and benefit pay-out within a policy year shall be clearly
				identified.
007.01(4) 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.
007.01(5) 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.
007.01(6) 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.
007.01(7) If the illustration shows any
				non-guaranteed 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 non-guaranteed.
007.01(8) The guaranteed elements, if any,
				shall be shown before corresponding non-guaranteed elements and shall be
				specifically referred to on any page of an illustration that shows or describes
				only the non-guaranteed elements (e.g., "see page one for guaranteed
				elements.")
007.01(9) 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.
007.01(10) 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.
007.01(11)
				Illustrations may show policy benefits and values in graphic or chart form in
				addition to the tabular form.
007.01(12) Any illustration of non-guaranteed
				elements shall be accompanied by a statement indicating that:
007.01(12)(a) The benefits and values are not
				guaranteed;
007.01(12)(b) The
				assumptions on which they are based are subject to change by the insurer;
				and
007.01(12)(c) Actual results
				may be more or less favorable.
007.01(13) If the illustration shows that the
				premium payer may have the option to allow policy charges to be paid using
				non-guaranteed 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.
007.01(14) If the applicant
				plans to use dividends or policy values, guaranteed or non-guaranteed, 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.