Section 930.70 General Rules

Section 930

Section 930.70  General Rules

a)         Each insurer shall maintain at its home office or principal

office, a complete file containing one copy of each document authorized by the

insurer for use pursuant to this Part.  Such file shall contain one copy of

each authorized form for a period of three years following the date of its last

authorized use.

b)         An agent shall inform the prospective purchaser, prior to

commencing a life insurance sales presentation, that he is acting as a life

insurance agent and inform the prospective purchaser of the full name of the

insurance company which he is representing to the buyer.  In sales situations

in which an agent is not involved, the insurer shall identify its full name.

c)         Terms such as financial planner, investment advisor, financial

consultant, or financial counseling shall not be used in such a way as to imply

that the insurance agent is generally engaged in an advisory business in which

compensation is unrelated to sales unless such is actually the case.

d)         Any reference to policy dividends must include a statement

that dividends are not guaranteed.

e)         A system or presentation which does not recognize the time

value of money through the use of appropriate interest adjustments shall not be

used for comparing the cost of two or more life insurance policies.  Such a

system may be used for the purpose of demonstrating the cash-flow pattern of a

policy if such presentation is accompanied by a statement disclosing that the

presentation does not recognize that, because of interest, a dollar in the

future has less value than a dollar today.

f)         A presentation of benefits shall not display guaranteed and

non-guaranteed benefits as a single sum unless they are shown separately in

close proximity thereto

g the cash-flow pattern of a

policy if such presentation is accompanied by a statement disclosing that the

presentation does not recognize that, because of interest, a dollar in the

future has less value than a dollar today.

f)         A presentation of benefits shall not display guaranteed and

non-guaranteed benefits as a single sum unless they are shown separately in

close proximity thereto.

g)         A statement regarding the use of the Life Insurance Cost

Indexes shall include an explanation to the effect that the indexes are useful

only for the comparison of the relative costs of two or more similar policies.

h)         A Life Insurance Code Index which reflects dividends or an

Equivalent Level Annual Dividend shall be accompanied by a statement that it is

based on the company's current dividend scale and is not guaranteed.

i)          For the purposes of this Part, the annual premium for a basic

policy or rider, for which the company reserves the right to change the

premium, shall be the maximum annual premium.