Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 10 - Life, Accident and Health › Subchapter 3 - Advertising › Part 5 - LIFE INSURANCE ILLUSTRATIONS REGULATION › Section 365:10-3-55 - Standards for basic illustrations

Current through Vol. 41, No.
				  20, July 1, 2024
(a)
Format.
A basic illustration shall conform with the following
				  requirements:
(1) The illustration shall be
				  labeled with the date on which it was prepared.
(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").
(3) The assumed dates of payment receipt and
				  benefit pay-out within a policy year shall be clearly identified.
(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.
(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.
(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.
(7) If the illustration
				  shows any non-guaranteed elements, they cannot be based on a scale more
				  favorable to the policy owner than the insurer's illustrated scale at any
				  duration. These elements shall be clearly labeled non-guaranteed.
(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.")
(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.
(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 policy owner in a lump sum after
				  deduction of surrender charges, policy loans and policy loan interest, as
				  applicable.
(11) Illustrations may
				  show policy benefits and values in graphic or chart form in addition to the
				  tabular form.
(12) Any illustration
				  of non-guaranteed elements shall be accompanied by a statement indicating that:
(A) The benefits and values are not
				  guaranteed;
(B) The assumptions on
				  which they are based are subject to change by the insurer; and
(C) Actual results may be more or less
				  favorable.
(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.
(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.