375.1509. Life insurance illustration, label, contents, use in sales presentation, interest rates. - Missouri Statutes

Life insurance illustration, label, contents, use in salespresentation, interest rates.

375.1509. 1. An illustration used in the sale of a life insurancepolicy shall satisfy the applicable requirements of sections 375.1500 to375.1527, be clearly labeled "life insurance illustration" and contain thefollowing basic information:

(1) Name of insurer;

(2) Name and business address of producer or insurer's authorizedrepresentative, if any;

(3) Name, age and sex of proposed insured, except where a compositeillustration is permitted pursuant to sections 375.1500 to 375.1527;

(4) Underwriting or rating classification upon which the illustrationis based;

(5) Generic name of policy, the company product name, if different,and form number;

(6) Initial death benefit; and

(7) Dividend option election or application of nonguaranteedelements, if applicable.

2. When using an illustration in the sale of a life insurance policy,an insurer or its producers or other authorized representatives shall not:

(1) Represent the policy as anything other than a life insurancepolicy;

(2) Use or describe nonguaranteed elements in a manner that ismisleading or has the capacity or tendency to mislead;

(3) State or imply that the payment or amount of nonguaranteedelements is guaranteed;

(4) Use an illustration that does not comply with the requirements ofsections 375.1500 to 375.1527;

(5) Use an illustration that at any policy duration depicts policyperformance more favorable to the policy owner than that produced by theillustrated scale of the insurer whose policy is being illustrated;

(6) Provide an applicant with an incomplete illustration;

(7) Represent in any way that premium payments will not be requiredfor each year of the policy in order to maintain the illustrated deathbenefits, unless that is the fact;

(8) Use the term "vanish" or "vanishing premium", or a similar termthat implies the policy becomes paid up, to describe a plan for usingnonguaranteed elements to pay a portion of future premiums;

(9) Except for policies that can never develop nonforfeiture values,use an illustration that is "lapse-supported"; or

(10) Use an illustration that is not "self-supporting".

3. If an interest rate used to determine the illustratednonguaranteed elements is shown, it shall not be greater than the earnedinterest rate underlying the disciplined current scale.

(L. 1998 S.B. 722 § 9)