[§431:10D-404]  General requirements andprohibitions.  (a)  An illustration used in the sale of a life insurancepolicy shall satisfy the applicable requirements of this part, be clearlylabeled "life insurance illustration", and contain the following basicinformation:

(1)  Name of insurer;

(2)  Name and business address of producer andinsurer's authorized representative, if any;

(3)  Name, age, and sex of proposed insured, exceptwhere a composite illustration is permitted under this part;

(4)  Underwriting or rating classification upon whichthe 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 ofnon-guaranteed elements, if applicable.

(b)  When using an illustration in the sale ofa life insurance policy, an insurer, its producers, or other authorizedrepresentatives shall not:

(1)  Represent the policy as anything other than alife insurance policy;

(2)  Use or describe nonguaranteed elements in amanner that is misleading or has the capacity or tendency to mislead;

(3)  State or imply that the payment or amount ofnonguaranteed elements is guaranteed;

(4)  Use an illustration that does not comply with therequirements of this part;

(5)  Use an illustration that at any policy durationdepicts policy performance more favorable to the policy owner than thatproduced by the illustrated scale of the insurer whose policy is beingillustrated;

(6)  Provide an applicant with an incompleteillustration;

(7)  Represent in any way that premium payments willnot be required for each year of the policy in order to maintain theillustrated death benefits, unless that is a fact;

(8)  Use the term "vanish" or"vanishing premium", or a similar term that implies the policybecomes paid up, to describe a plan for using nonguaranteed elements to pay aportion of future premiums;

(9)  Except for policies that can never developnonforfeiture 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 theillustrated nonguaranteed elements is shown, it shall not be greater than theearned interest rate underlying the disciplined current scale. [L 2000, c 252,pt of §2]