(a) An illustration used in the sale of a life insurance policy shall satisfy the applicable requirements of this part, be clearly labeled “life insurance illustration”, and contain the following basic information:
Terms Used In Hawaii Revised Statutes 431:10D-404
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(1) Name of insurer;(2) Name and business address of producer and insurer’s authorized representative, if any;(3) Name, age, and sex of proposed insured, except where a composite illustration is permitted under this part;(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, its producers, or other authorized representatives shall not:
(1) Represent the policy as anything other than a life insurance policy;(2) Use or describe nonguaranteed 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 nonguaranteed elements is guaranteed;(4) Use an illustration that does not comply with the requirements of this part;(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 a 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 nonguaranteed 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 nonguaranteed elements is shown, it shall not be greater than the earned interest rate underlying the disciplined current scale.
