§ 27-62-5. General rules and prohibitions.
(a) An illustration used in the sale of a life insurance policy shall satisfy the applicable
requirements of this chapter, be clearly labeled "life insurance illustration� and
contain the following basic information:
(1) Name of insurer;
(2) Name and business address of producer or insurer's authorized representative, if any;
(3) Name, age, and sex of proposed insured, except where a composite illustration is permitted
under this chapter;
(4) Underwriting or rating classification upon which the illustration is 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 non-guaranteed elements, if applicable.
(b) 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 insurance policy;
(2) Use or describe non-guaranteed elements in a manner that is misleading or has the
capacity or tendency to mislead;
(3) State or imply that the payment or amount of non-guaranteed elements is guaranteed;
(4) Use an illustration that does not comply with the requirements of this chapter;
(5) Use an illustration that at any policy duration depicts policy performance more favorable
to the policy owner than that produced by the illustrated 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 required for each year of the
policy in order to maintain the illustrated death benefits, unless that is the fact;
(8) Use the term "vanish� or "vanishing premium,� or a similar term that implies the policy
becomes paid up, to describe a plan for using non-guaranteed 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.�
(c) If an interest rate used to determine the illustrated non-guaranteed elements is shown,
it shall not be greater than the earned interest rate underlying the disciplined current
scale.