(a)  Each insurer marketing policies to which this chapter is applicable shall notify the commissioner whether a policy form is to be marketed with or without an illustration. For all policy forms being actively marketed on January 1, 1999, the insurer shall identify in writing those forms and whether or not an illustration will be used with them. For policy forms filed after January 1, 1999, the identification shall be made at the time of filing. Any previous identification may be changed by notice to the commissioner.

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Terms Used In Rhode Island General Laws 27-62-4

  • Illustrated scale: means a scale of non-guaranteed elements currently being illustrated that is not more favorable to the policy owner than the lesser of:

    (i)  The disciplined current scale; or

    (ii)  The currently payable scale. See Rhode Island General Laws 27-62-3

  • Illustration: means a presentation or depiction that includes non-guaranteed elements of a policy of life insurance over a period of years and that is one of the three (3) types defined in subsections (8)(i) — (8)(iii):

    (i)  "Basic illustration" means a ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and non-guaranteed elements. See Rhode Island General Laws 27-62-3

  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • Non-term group life: means a group policy or individual policies of life insurance issued to members of an employer group or other permitted group where:

    (i)  Every plan of coverage was selected by the employer or other group representative;

    (ii)  Some portion of the premium is paid by the group or through payroll deduction; and

    (iii)  Group underwriting or simplified underwriting is used. See Rhode Island General Laws 27-62-3

(b)  If the insurer identifies a policy form as one to be marketed without an illustration, any use of an illustration for any policy using that form prior to the first policy anniversary is prohibited.

(c)  If a policy form is identified by the insurer as one to be marketed with an illustration, a basic illustration prepared and delivered in accordance with this chapter is required, except that a basic illustration need not be provided to individual members of a group or to individuals insured under multiple lives coverage issued to a single applicant unless the coverage is marketed to these individuals. The illustration furnished an applicant for a group life insurance policy or policies issued to a single applicant on multiple lives may be either an individual or composite illustration representative of the coverage on the lives of members of the group or the multiple lives covered.

(d)  Potential enrollees of non-term group life subject to this chapter shall be furnished a quotation with the enrollment materials. The quotation shall show potential policy values for sample ages and policy years on a guaranteed and non-guaranteed basis appropriate to the group and the coverage. This quotation shall not be considered an illustration for purposes of this chapter, but all information provided shall be consistent with the illustrated scale. A basic illustration shall be provided at delivery of the certificate to enrollees for non-term group life who enroll for more than the minimum premium necessary to provide pure death benefit protection. In addition, the insurer shall make a basic illustration available to any non-term group life enrollee who requests it.

History of Section.
P.L. 1998, ch. 56, § 1.