| (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.
(b) Records retention. As applicable, a copy of the basic illustration,
a revised basic illustration, and/or a signed numeric summary page, 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 of such records
need not be retained if no policy is issued.
|
