(a)  A supplemental illustration may be provided so long as:

(1)  It is appended to, accompanied by, or preceded by a basic illustration that complies with this chapter;

(2)  The non-guaranteed elements shown are not more favorable to the policy owner than the corresponding elements based on the scale used in the basic illustration;

(3)  It contains the same statement required of a basic illustration that non-guaranteed elements are not guaranteed; and

(4)  For a policy that has a contract premium, the contract premium underlying the supplemental illustration is equal to the contract premium shown in the basic illustration. For policies that do not require a contract premium, the premium outlay underlying the supplemental illustration shall be equal to the premium outlay shown in the basic illustration.

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Terms Used In Rhode Island General Laws 27-62-7

  • Contract: A legal written agreement that becomes binding when signed.
  • Contract premium: means the gross premium that is required to be paid under a fixed premium policy, including the premium for a rider for which benefits are shown in the illustration. See Rhode Island General Laws 27-62-3
  • Guaranteed elements: means the premiums, benefits, values, credits, or charges under a policy of life insurance that are guaranteed and determined at issue. 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

  • Non-guaranteed elements: means the premiums, benefits, values, credits, or charges under a policy of life insurance that are not guaranteed or not determined at issue. See Rhode Island General Laws 27-62-3
  • Policy owner: means the owner named in the policy or the certificate holder in the case of a group policy. See Rhode Island General Laws 27-62-3
  • Premium outlay: means the amount of premium assumed to be paid by the policy owner or other premium payer out-of-pocket. See Rhode Island General Laws 27-62-3
  • Supplemental illustration: means an illustration furnished in addition to a basic illustration that meets the applicable requirements of this chapter, and that may be presented in a format differing from the basic illustration, but may only depict a scale of non-guaranteed elements that is permitted in a basic illustration. See Rhode Island General Laws 27-62-3

(b)  The supplemental illustration shall include a notice referring to the basic illustration for guaranteed elements and other important information.

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