West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-11C - Life Insurance Illustrations › Section 114-11C-6 - Standards for Basic Illustrations

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1.
				Format. A basic illustration shall conform with the following requirements:
a. The illustration shall be labeled with the date
				on which it was prepared.
b. 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").
c. The
				assumed dates of payment receipt and benefit pay-out within a policy year shall be
				clearly identified.
d. 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.
e. 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.
f. 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.
g. Any non-guaranteed elements cannot be based on
				a scale more favorable to the policy owner than the insurer's illustrated scale at
				any duration and must be clearly labeled as non-guaranteed.
h. 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.")
i. The account or accumulation value of a policy,
				if shown, shall be identified by the name the value is given in the policy being
				illustrated and shown in close proximity to the corresponding value available upon
				surrender.
j. The value available upon
				surrender shall be identified by the name it 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.
k. Illustrations may show
				policy benefits and values in graphic or chart form in addition to the tabular
				form.
l. Any illustration of
				non-guaranteed elements shall be accompanied by a statement indicating that:
1. The benefits and values are not
				guaranteed;
2. The assumptions on which
				they are based are subject to change by the insurer; and
3. Actual results may be more or less
				favorable.
m. 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.
n. The illustration may reflect the applicant's
				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 and
				the impact of those plans on future policy benefits and values.