North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 04 - CONSUMER SERVICES DIVISION › Section .0500 - LIFE INSURANCE ILLUSTRATIONS › Section 04 .0507 - DELIVERY OF ILLUSTRATION AND RECORD RETENTION

Current through Register Vol. 39, No. 2, July 15, 2024
(a) If a
				basic illustration is used by an insurance agent or other authorized
				representative of the insurer in the sale of a policy and the policy is applied
				for as illustrated, a copy of that illustration, signed in accordance with this
				Rule, shall be submitted by an insurance agent or other authorized
				representative to the insurer and the applicant at the time of policy
				application.
(b) 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 Rule, shall be labeled "Revised
				Illustration" and shall be signed and dated by the applicant or policy owner
				and insurance agent 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.
(c) If no
				illustration is used by an insurance agent or other authorized representative
				in the sale of a policy or if the policy is applied for other than as
				illustrated, the producer or representative 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.
(d) If the
				policy is issued, a basic illustration conforming to the policy as issued shall
				be sent with the policy and signed no later than the time the policy is
				delivered. A copy shall be provided to the insurer and the policy
				owner.
(e) If the basic
				illustration or revised illustration is sent to the applicant or policy owner
				by mail directly from the insurer, 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 and return the signed copy to
				the insurer. The insurer's obligation under this Paragraph shall be satisfied
				if it can demonstrate that it 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 insurer includes in the mailing a
				self-addressed postage prepaid envelope with instructions for the return of the
				signed numeric summary page.
(f) A
				copy of the basic illustration and a revised basic illustration, if any, signed
				if required by rule, 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 need not be retained if no policy is issued.
Authority
				  G.S.
				  58-2-40;
				  58-58-1;
				  58-58-40;
				  58-60-15;
				  58-60-20;
				  58-63-15;
				  58-63-65;
Eff. January
				  1, 1997;
Readopted Eff. December 1,
				  2021.