Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 21 - TRADE PRACTICES › Subchapter N - LIFE INSURANCE ILLUSTRATIONS › Section 21.2209 - Delivery of Illustration and Record Retention

Current through Reg. 49, No. 28; July 12, 2024
(a) Illustration delivery provisions. An
				  illustration or revised illustration shall be delivered by the insurer as set
				  out in paragraphs (1)-(5) of this subsection.
(1) Basic illustration delivery. If a basic
				  illustration is used by an insurance producer or other authorized
				  representative of the insurer in the sale of a life insurance policy, and the
				  policy is applied for as illustrated, a copy of that illustration signed in
				  accordance with this rule shall be submitted to the insurer at the time of
				  policy application. A copy also shall be provided to the applicant.
(2) Revised illustration delivery. 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 subchapter, shall be
				  labeled "Revised Illustration," and shall be signed and dated by the applicant
				  or policy owner and insurance producer 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.
(3) Certification required where no
				  illustration is used. If no illustration is used by an insurance producer or
				  other authorized representative of the insurer in the sale of a life insurance
				  policy or if the policy is applied for other than as illustrated, the insurance
				  producer, other authorized representative of the insurer, or insurer 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.
(4) Illustration to be provided with policy.
				  If the policy is issued under facts and circumstances described in paragraph
				  (3) of this subsection, a basic illustration conforming to the policy as issued
				  shall be sent with the policy. A copy shall be provided to the insurer and the
				  policy owner.
(5) Proof of
				  illustration delivery by mail. If a basic illustration or revised illustration
				  is sent to the applicant or policy owner by mail from an insurance producer,
				  other authorized representative of an insurer, or the insurer itself, 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 or
				  applied for and return the signed copy to the insurer. The insurer's obligation
				  under this subsection shall be satisfied if the insurer can demonstrate that
				  the insurance producer, other authorized representative of the insurer, or the
				  insurer itself 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 insurance producer, other authorized representative of the
				  insurer, or insurer includes in the mailing a self-addressed postage prepaid
				  envelope with instructions for the return of the signed numeric summary
				  page.